A survey conducted by United Trust Bank highlights that 59 per cent of brokers believe the bridging and short-term finance sector is the most likely mortgage area to experience growth this year.
This is followed by the development finance sector, which 37 per cent of brokers believe will lead the way in 2019 in terms of growth.
Furthermore, research collected by the Association of Short-Term Lenders outlined that 75 per cent of its members who participated in the firm’s survey expect to see growth within their businesses in the next six months – UTB believes this indicates that the bridging sector is in “good health”.
Conversely, the survey revealed thatprime first charge mortgages, at 16 per cent, and consumer finance and high LTV first-time buyyer mortgages, at 17 per cent apiece, are expected to grow the least.
United Trust Bank commercial director of bridging Gavin Diamond comments: “Bridging finance has been a growth success story over the last decade, so it is not surprising that brokers expect to see new lenders joining the sector this year.
“However, the economic climate could be decidedly unsettled for the foreseeable future and brokers and customers are likely to select lenders who can demonstrate experience of challenging markets and certainty of funding.
“The best bridging lenders employ people who are experienced and have worked through various property market cycles.
“Any new entrants may find it tough to gain the confidence of brokers if their proposition is not backed up with real world experience.”