90% of brokers believe bridge-to-let can assist BTL clients
An estimated 90% of brokers believe that bridge-to-let can help overcome concerns about bridging finance for buy-to-let (BTL) clients, according a poll conducted in partnership between Castle Trust Bank and Knowledge Bank.
Brokers discussed the benefits of bridging as a way of helping buy-to-let clients access new opportunities, but more than a quarter (28%) said their clients had concerns about short-term finance.
However, participants were almost unanimous in their agreement that bridge-to-let offered a way to overcome client concerns.
Brokers also agreed that buy-to-let is a growing market, with 64% saying that they have seen an increase in BTL and holiday let enquiries in the last three months.
Rob Oliver, sales director at Castle Trust Bank, said: “Bridging finance often enables investors to access opportunities that they wouldn’t be able to fund with a mortgage at the outset.
“But some clients are hesitant when it comes to short term lending as they worry about the uncertainty and unknown costs if they are unable to secure a suitable exit in their anticipated timeframe.
“Bridge-to-let tackles these concerns head on, with a pre-agreed exit onto a buy-to-let mortgage, including the price, at the outset.
“It’s one application process that offers speed, efficiency, budget planning and peace of mind, so no wonder 90% of brokers agree it’s a great way to beat client concerns.”
Matthew Corker, operations director at Knowledge Bank, added: “There’s strong demand from property investors at the moment, and many are looking at more specialist types of investment, such as HMOs, holiday lets and multi-units, which offer the potential for greater returns.
“Fortunately, there are lots of innovative options, like bridge-to-let, which enable investors to make the most of new opportunities, whilst also managing their own risk.”