In December the Council of Mortgage Lenders predicted that banks and building societies would lend an extra £12bn in 2013, 8.3% more than they did in 2012.
But in a recent survey of 400 mortgage brokers carried out by peer-to-peer bridging lender West One Loans, mortgage intermediaries forecast the bridging industry will grow by 36% over the next year – four times faster than the mainstream mortgage market.
The projection, recorded in the latest West One Broker Sentiment Survey, follows recorded annual growth of 65% in the year to Q3 2012.
Duncan Kreeger, chairman of peer-to-peer bridging lender West One Loans, said: “The mainstream market is going nowhere fast. Even the eight percent forecast from the CML seems hugely optimistic. The banks are being hobbled by funding constraints – capital adequacy rules mean that they’re in no position to lend a great deal more money. At the same time, the market is desperate for extra funds – small businesses in particular are crying out for loans – the most carefully considered investment plans are being ignored by banks on the high street. That’s driving potential borrowers of various kinds to alternative sources of finance like bridging. Fortunately, the bridging market has proved very dynamic over the last few years and has been able to respond to that demand.
“By the end of 2013, the bridging industry will be lending almost 400% more finance than it was in 2010. In contrast, the high street will be lending just 11% more than it was in 2010.”
Article courtesy of Property Investor Today