Wednesday, January 24, 2018

Majority of Brokers Confident about Business Growth

Featured in Best Advice

68% of brokers surveyed by bridging finance lender MTF believe overall market conditions will improve in 2018, compared to January 2017, when only 31% of brokers surveyed were confident about the year ahead.
Half of the brokers surveyed said macroeconomic uncertainty would be the main challenge for UK financial services firms in 2018, while 28% cited the impact of Brexit negotiations, and 13% said the level of market competition would be the biggest challenge. Only 6% of brokers thought regulation would prove a challenge.
Demand for specialist finance is expected to remain strong, with 84% of brokers preparing for a further rise in bridging finance volume in 2018, after 73% of those questioned reported an actual rise in bridging loan volume in 2017.
Refurbishment was the main reason borrowers took out bridging loans in the last quarter of 2017 at 28%, followed by property purchases and funding development projects, at 19% each.
For the fifth consecutive quarter the South East saw the biggest demand for bridging finance in the UK during the fourth quarter of 2017, at 47% – a 1% drop on Q3.
The geographical spread of bridging finance demand continued in the last quarter of 2017, with brokers noting an increase in demand in Northern Ireland (4%), Scotland (3%) and the North East of England (3%).
James Anderson, head of new business at MTF, said: “After the challenges faced in 2017, it is encouraging to see that brokers’ confidence is strong as we enter the New Year.
“I’m delighted that brokers see the demand for a growth in bridging finance in 2018 and the reasons are simple. Bridging loans provide a real-time solution to the funding gap that has developed as high street lenders come to terms with increased regulation.  We can continue to expect to see a substantial rise in the demand for bridging finance throughout the rest of the year.”

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