"We know that this market changes quickly and the complicated nature of securing the right finance for clients means many brokers feel unable to source and advise in these sectors themselves."
The broker says that an "ever-changing lending market" has resulted in many brokers seeking specialist support in recent months, particularly in development finance where cases have grown to 30% of all its enquiries.
First 4 Bridging anticipates a continued increase in bridging and development finance enquiries throughout the rest of the year "given the changing nature of other property investment finance sources such as buy-to-let lending", and the growing pressures being placed on lenders in this market to improve stress tests and ultimately cut back on lending at higher LTV levels.
Donna Wells, Director of First 4 Bridging, commented: “In the immediate period post-referendum the market was incredibly quiet as all stakeholders, particularly lenders, took stock of what had just taken place. We saw lending activity tail off and criteria become stricter, however since those initial few weeks we have slowly started to see bridging and development finance lenders move back into the market, with criteria loosening slightly and their appetites returning.
“This has undoubtedly developed as client and broker enquiries for finance have grown over the summer months and now into September. We know that this market changes quickly and the complicated nature of securing the right finance for clients means many brokers feel unable to source and advise in these sectors themselves. This is why they appear to be seeking to work with specialists like First 4 Bridging who have the strongest of lender relationships, access to the whole of market, and are able to know instinctively where a case may, or may not, fit.
"Our growth in enquiries is coming from both new and existing broker clients and we anticipate this will continue giving the fundamentals in the UK housing market, such as continued lack of supply and the delicate funding arrangements that cut across many sectors.”
