Featured in Financial Reporter by Paul Wertheim, Operations Director, Mint Bridging
2016 has seen some big fluctuations in the property market, with pregnancy style trimesters. From the early part of the year, statistics showed house prices dropped alongside increased activity, by investors in advance of April’s stamp duty hike. This rush to complete deals resulted in companies, like Mint Bridging, securing record bridging loan completions.
Then the second trimester came in: the summer holiday break is notorious for homeowners grabbing buckets & spades to press the “relax” mode button. Yet during the same time, Brexit threw a spanner in the sand castle making and overseas property owners started salivating at the mouth with excitement, proceeding to grab properties at a discount following the announcement.
As a result, Mint has completed a significant amount of bridging recently to overseas investors looking for solidity in the market place. Pricing also became more aggressive during this period of uncertainty, as validated by RightMove Director and Housing Market Analyst Miles Shipside.
Waiting for the other shoe to drop, investors in the north are now developing properties with greater frequency. And with the housing price growth hitting a three-year low in July (again most likely due to Brexit), the rest of the year’s trimester is showing signs of stronger stability.
Waiting for the other shoe to drop, investors in the north are now developing properties with greater frequency. And with the housing price growth hitting a three-year low in July (again most likely due to Brexit), the rest of the year’s trimester is showing signs of stronger stability.
Valuers are still in a state of flux, and showing signs of extreme caution, especially in the previous hots spots of London. We have seen a large number of valuations not hit anywhere close to what the potential borrower suspects the property to be worth. We’re also taking into account the north & south divide: the South East is seeing a dramatic slowdown in property transactions, while the north is showing more stability and London is seeing some signs of normality in the suburbs.
It’s important to note that the mainstream newspapers aren’t providing a great source of comfort though, quoting contradicting ‘expert’ opinion pieces that contrast by the hour. Joe Public are sitting back with slight baited breath to see what twaddle will be written next. It’s going to be a long time before Brexit is signed, sealed and the UK’s sailed ship, with opportunities for other countries wanting to now follow suit. A recession is not on the cards as long as the ‘create panic to sell advertising space’ opinion mainstream newspaper journalists are controlled, and don’t cause property-owners into unnecessary panic.
Therefore, we believe that the third trimester is stabilizing, it’s back to business as usual and (as we mentioned recently), Mint is maximising on new, arising opportunities that usually wouldn’t have come our way. These include borrowers gravitating to Mint after being rejected for a loan or worse, the deal pulled last minute. Some specialist lenders who are turning down bridging inquiries, are allowing lenders such as Mint, to enter a substantial growth phase.
Mint Bridging’s business prides on referrals and Brexit has helped to accelerate this, especially with our overseas influx of clients who are turning to our market, (ironically) as they believe we have a more stable economy. Our main point of advice for industry players is to never presume that what worked pre Brexit will now be your bread and butter. Major financial institutions restrictions have paved way for small lenders growth, so our advice is to maintain an entrepreneurial approach: what worked in the prior industry life cycle is now broken and there are gaps in the market for the fastest, most aggressive takers.
It’s important to note that the mainstream newspapers aren’t providing a great source of comfort though, quoting contradicting ‘expert’ opinion pieces that contrast by the hour. Joe Public are sitting back with slight baited breath to see what twaddle will be written next. It’s going to be a long time before Brexit is signed, sealed and the UK’s sailed ship, with opportunities for other countries wanting to now follow suit. A recession is not on the cards as long as the ‘create panic to sell advertising space’ opinion mainstream newspaper journalists are controlled, and don’t cause property-owners into unnecessary panic.
Therefore, we believe that the third trimester is stabilizing, it’s back to business as usual and (as we mentioned recently), Mint is maximising on new, arising opportunities that usually wouldn’t have come our way. These include borrowers gravitating to Mint after being rejected for a loan or worse, the deal pulled last minute. Some specialist lenders who are turning down bridging inquiries, are allowing lenders such as Mint, to enter a substantial growth phase.
Mint Bridging’s business prides on referrals and Brexit has helped to accelerate this, especially with our overseas influx of clients who are turning to our market, (ironically) as they believe we have a more stable economy. Our main point of advice for industry players is to never presume that what worked pre Brexit will now be your bread and butter. Major financial institutions restrictions have paved way for small lenders growth, so our advice is to maintain an entrepreneurial approach: what worked in the prior industry life cycle is now broken and there are gaps in the market for the fastest, most aggressive takers.
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