Results of a recent survey carried out by United Trust Bank reveal that despite increased competition with several new entrants to the sector, most brokers (63%) don’t expect to see bridging lenders’ interest rates and charges change in the near future. The majority of brokers (62%) also indicated that they expected to place increasing levels of bridging business over the next 12 months.
Although 67 per cent of brokers responding to the survey suggested that the current economic environment had had a negative effect on their business, the majority of brokers are optimistic about the next three years.
- 47% of brokers described the 3 year outlook for their businesses as ‘Optimistic’
- 23% described their 3 year outlook as ‘Comfortable’
- 27% described their 3 year outlook as ‘Unsure’
- 3% were ‘Worried’
Commenting on the research findings Alan Margolis, Head of Bridging at United Trust Bank said;
“Bridging lenders’ interest rates and charges have remained fairly static for some time now, despite some increased competition from a few new entrants. Most brokers accept that it would take a significant change in the Bank of England base rate for it to influence bridging lenders and with disappointing economic growth forecasts and more quantitative easing on the way, a change from the Bank of England in the near future looks unlikely.
“It’s encouraging to see that most brokers are expecting to place increasing levels of bridging business over the next 12 months and nearly half of brokers are optimistic about the outlook for their own businesses over the next three years. These are undoubtedly still very tough times for many people, however some brokers are flourishing. United Trust Bank is committed to building strong relationships with its broker partners and we will continue to do all we can to help brokers serve their customers and develop their businesses.”