Short-term loans fill the mainstream gap
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The latest figures from the Council of Mortgage Lenders, which showed that estimated lending was up 2% in 2011 and at £140bn was £2bn higher than forecast, would appear to suggest that the market is heading in the right direction.
But these numbers fail to tell the whole story.
Activity in Q4 2011 was fairly resilient despite challenging conditions but things are set to get worse before they get better.
Turmoil in the eurozone means many mainstream lenders cannot predict with any accuracy how mortgage funding prospects are likely to pan out.
This means all but those borrowers with large deposits and impeccable credit records are likely to have their work cut out obtaining finance in the year ahead.
Borrowers looking for tailored solutions and a flexible approach - such as property developers, buy-to-let landlords or those buying at auction - are likely to remain ostracised by high street banks that are unwilling to look beyond vanilla customers.
This is where short and medium-term lenders come into their own.
At a time when traditional lines of lending continue to be restricted, brokers should consider short-term or their clients may not be able to secure the finance they need.
This can often mean the difference between projects going ahead or not.
When they do, work is created, money flows through the system and the economy starts to get back on its feet with this type of lending.
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