Three quarters of property investors raised alternative finance in the past year after struggling to obtain mainstream funding, a survey from MT Finance reveals.
Almost half (44%) of the 82 property investors questioned cited affordability as the main barrier to getting mainstream funding.
The survey also showed that 47% of investors got a secured loan as an alternative, whilst 39% opted for a bridging loan.
The same amount of those who raised alternative finance also intend to expand their portfolio in 2017, with 67% targeting London and 33% looking to buy in the South East.
Tomer Aboody, director of MT Finance, said: “The results from our Q1 Property Investor Survey reflect the impact of stricter affordability and stress testing from lenders on professional property investors’ ability to obtain mainstream funding.
“It’s certainly been a tough 18 months for landlords but alternative lenders are stepping in to meet the needs of borrowers.”