Theresa May has now, as you are no doubt aware, triggered the formal process of the UK leaving the EU, and the view of the markets is mixed. There’s the pessimists as ever, who believe that the risks associated with the UK having to navigate the forthcoming choppy waters are not fully priced into the markets, and then there are those who firmly believe that the process is a breeze. Interestingly the situation with Spain and Gibraltar looks to be the first of many negotiation points which will no doubt ruffle a few feathers.
Anyway, in the UK lenders appear to be increasingly confident regarding the bridging market as reported by Mortgageandintroducer, which is interesting, as there is potential for some buy-to-let owners to begin to feel the squeeze post 5th April as the interest cover tax changes start to bite.
Bridging lenders are becoming increasingly confident about the sector’s prospects despite the recent triggering of Article 50, Association of Short Term Lenders research has found.
As it stands 85% of ASTL lenders expect their own volumes to increase in the next six months, while 56% expect the bridging market as a whole to increase.
Regarding the future prospects of the UK economy 45% are confident, up from 35% in November and 28% last April before the EU referendum took place.
Aspen Bridging joins ASTLAmong other members one in five (21%) were not confident about the UK’s prospects in the next 12 months, down from two thirds (67%) immediately after the referendum.
Benson Hersch, chief executive of the ASTL, said: “Good results in Q1 of 2017 have caused lenders to be more positive about the future.
“The ASTL should continue to grow in both numbers and influence as recognition of the sector spreads. Bridging finance has come a long way and, whilst there will no doubt be ups and downs, it’s here to stay.”
Source: http://www.mortgageintroducer.com/bridging-lender-confidence-growing-despite-article-50/#.WOP4m3TysWo
It really is a guessing game, and private investors and institutional funds alike appear to be able to earn good returns on their capital through investing in bridging, although this market has fundamentally expanded during a boom cycle. We are now 6 or 7 years into this boom and frankly it’s time for a correction in property prices, and Brexit could well be the trigger of this.
from Hertfordshire Business Funding https://www.hertfordshirebusinessfunding.com/bridging-finance-confidence-grows-despite-brexit/
via https://www.hertfordshirebusinessfunding.com
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