86% of brokers noticed a rise in bridging loan volume during the fourth quarter of 2015, up from 76% in the previous quarter as more borrowers struggled to get mortgages from banks.
91% were unable to source mortgages for some of their clients in the fourth quarter, with almost half attributing affordability as the main barrier.
61% of brokers turned to bridging finance as an alternative source of funding in a bid to fill a liquidity shortfall, compared to 26% that opted for secured loans.
Aside from affordability, 27% of brokers said they were unable to get mortgages for clients with poor credit history and 18% blamed property downvalue.
The south-east saw the biggest demand for bridging loans in the UK during Q4 2015 at 50%, followed by London, which grew to 33% in the fourth quarter, up from 28% during the third quarter of 2015.
Bridging finance was seen a useful financial tool by 100% of brokers surveyed during the fourth quarter, up from 93% in the third quarter and 77% during the second quarter.
Tomer Aboody, Director of MTF said:
“Bridging finance continues to plug a funding gap as borrowers seek specialist and flexible funding from bridging finance lenders.
“At MTF one of our defining characteristics is that we are non-status lenders. We don’t require evidence of trading history, accounts or proof of income. Instead we focus on the property and the client’s future plans. This allows us to take a practical, common sense approach to lending.”
