Bridging lenders remain positive about prospects

Published on

The Association of Short Term Lenders’ (ASTL) latest sentiment survey has found that members are remaining positive about their, and the sector’s, prospects, despite the current political uncertainty.

Members are slightly less sanguine about the long-term future prospects of the UK economy. Positivity has now decreased from 45% in March to 43%.  This is still well above the 35% who felt positive in January, and the meagre 6% of members who felt positive post the Brexit referendum.

55% of members said they felt less positive directly as a result of the election.  34% now say that they are not confident about the prospects for the UK over the next 12 months.  This is up from 21% in March but significantly better than the 67% who were not confident about the UK economy post-referendum.  The remaining 23% feel that the economy will remain pretty much as it is now.

Only 2% feel more positive about the UK economy post-election. This compares with 22% post-budget.

Lenders remain positive about the prospects for their own businesses as 70% feel that their volumes will grow over the next six months. Only 6% expect business to fall off, with the balance expecting no or little growth.

59% expect growth in the sector to increase and 56% expect an increase in competition in the sector.

Benson Hersch (pictured), CEO of the ASTL, said: “Whilst there is understandable caution about future prospects, the sector will continue to grow. While there are signs that the rate of past growth in prices in the residential property sector will not continue, this should not inhibit the long-term growth of bridging as more and more people realise that the flexibility it offers provides a useful source of short-term funding.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Hope Capital targets refurb market with high-LTV bridging product

Hope Capital has launched a new bridging loan product offering 75% net initial advance. It...

Savvy summer sellers deliver strongest July sales since 2020

July delivered the highest number of sales agreed for this month since 2020 as...

Newcastle for Intermediaries removes age cap on standard repayment mortgages

Newcastle for Intermediaries has abolished the maximum age limit for the repayment of standard...

Rising cost of living could stall housing market activity

The rising cost of living remains the most pressing concern for Britons and could...

The Mortgage Works cuts switcher rates for existing landlords

The Mortgage Works has announced reductions of up to 0.25 percentage points on selected...

Latest publication

Latest opinions

Tuning into later life lending conversations

There are certain conversations in our profession that can genuinely change the course of...

Right of Light risks: a looming shadow over construction projects

Gone are the days when a Right of Light infringement could be swiftly dealt...

Could a move to ‘enhanced advice’ also mean mandatory protection conversations?

The FCA’s recent Mortgage Market Discussion Paper (DP25/2) has got the industry talking about...

Take off the rose-tinted glasses and stop chasing a rate cut

Every six weeks the financial world raises its eyebrows at the prospect of a...

Other news

Tuning into later life lending conversations

There are certain conversations in our profession that can genuinely change the course of...

Hope Capital targets refurb market with high-LTV bridging product

Hope Capital has launched a new bridging loan product offering 75% net initial advance. It...

Savvy summer sellers deliver strongest July sales since 2020

July delivered the highest number of sales agreed for this month since 2020 as...