Capital Bridging Finance has found, a year on from its first broker survey, that intermediaries want even longer term short-term loans than before.
In January 2013, one of the outcomes of the first Capital Bridging Finance broker survey was the demand by brokers for longer period ‘short term loans’. In 2012 50% of brokers had a regular loan length of six months with 25% reporting a 12 month emphasis. In the same survey when asked “What areas of funding do lenders need to address the majority of brokers called for longer term loans. They also asked for higher LTVs too.
The second survey, from February 2014, reveals that not only is a 12 month loan term now the norm with over 50% of respondents but again the majority want even longer periods.
Keith Aldridge managing director of Capital Bridging Finance, said: “We have been delighted with the response to this year’s survey with a 100% increase in the number of brokers expressing their honest opinions about what they expect of the market in 2014 and what they think of Capital Bridging’s offering and how it should be improved.
“We have a growing reputation for being a sector leader in seeking feedback from the market (including our solicitor and valuer partners) but it is how we react to the feedback that will determine how the business grows in the face of strong competition.”
Once again it was the speed of clients’ solicitors that most frustrated the broker fraternity with 73% being dissatisfied with this aspect of the process (in 2013 it was 60%).
Meanewhile, 92% expected 2014 levels of business to be greater than 2013. However, the percentage levels of their business that bridging accounted for remained roughly the same as in 2013 with the majority claiming bridging accounted for 30% of their volumes.
Aldridge added: “Our survey is qualitative, targeting just 300 specialist brokers from our database. We will be using the feedback from these specialists to improve the broker experience with Capital Bridging, to extend our product offering and to help support our membership with the ASTL. It is this type of information that will strengthen the reputation of the short term funding sector.
“Capital Bridging will be making some significant announcements in the months ahead and a great deal of what we will be saying will be in response to those who took the time to complete the survey. Much of the data gathered is sensitive as it will provide the foundation for our plans over the next few years and so we are very grateful for all those who found the time to complete the 13 question survey.”
