First 4 Bridging sees significant increase in post-EU referendum enquiries
First 4 Bridging, the bridging loan master broker and packager, has today (27th September 2016) revealed it has seen a 30-40% increase in broker enquiries on bridging and development finance cases since the result of the EU referendum was known at the end of June this year.
The Bracknell-based finance broker says that an ever-changing lending market has resulted in many brokers seeking specialist support in recent months, particularly in areas such as bridging and development finance, as lenders continue to feel their way through the post-referendum market.
First 4 Bridging says that, in particular, development finance cases have grown to 30% of all its enquiries indicating a summer boost in activity as developers seek to make the most of their properties in a housing market still incredibly low on supply.
First 4 Bridging anticipates a continued increase in bridging and development finance enquiries throughout the rest of the year, especially 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.
First 4 Bridging has been an established bridging loans master broker and packager for over 15 years. Advisers are able to introduce cases to First 4 Bridging and benefit from its close lender relationships, plus its ability to provide immediate decisions, bespoke solutions and rapid turnarounds. In addition to bridging loans, First 4 Bridging also offers development finance and medium-term loans with terms from one month to five years.
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.”