The lender predicts that as opportunities in the sub-prime market decline brokers will turn to the bridging sec-tor, sparking huge growth in this underdeveloped market.
In a poll of brokers, Cheval found that just under half have yet to fully engage with bridging finance while another 25% are unfamiliar with bridging altogether.
Mark Posniak, director of sales and marketing at Cheval, says: “Sub-prime is a congested marketplace with few growth opportunities for brokers. Sub-prime grew rapidly and bridging finance is set to see the same rate of ex-pansion in the coming years.
“All brokers have clients with short-term specialist financial needs. They tend to be equity-rich but cash-poor. They need finance in their bank accounts within seven days of application and this demand needs to be met so brokers who have yet to deal in this sector will increasingly wake up to its potential.”
Danny Waters, operations director at Enterprise Finance, says: “The bridging loans market is growing. There is some trepidation as these loans are expensive, but some people need to use them so they can afford to buy houses. They are perfectly feasible for many.”