Bridging brokers value speed the most
Nearly half (44%) of brokers believe that speed to completion is currently the main priority for bridging borrowers, United Trust Bank’s most recent Broker Sentiment Poll has revealed.
Some 19% said that securing the lowest rate was most important, only slightly ahead of certainty of funding.
Speed of initial decision was rated most important by just 4% of brokers.
Gavin Diamond, commercial director of bridging, United Trust Bank, said: “It’s interesting that although a majority of brokers indicated that a quick completion is the most important factor for borrowers when placing a deal, in reality UTB are often the party waiting for the customer to trigger the drawdown of the loan.
“Lately we’ve noticed that the time between initial proposal and drawdown is now greater than it has been for a long time, and it’s the customers who are setting the slower pace, not the lender.
“The fact that the speed of the initial decision ranked near the bottom of the list of borrower priorities also contradicts our experience.
“In most instances the broker and the borrower want a quick decision and the assurance of an offer letter to enable the clients to move on with confidence.
“We’ve enjoyed a busy first half to 2019 with demand for bridging increasing across all regions and in most sectors.”
Property development, refurbishment and conversion were the sectors where bridging loans were most in demand.
Diamond added: “Despite political and economic uncertainty, there are still many developers using short-term lending to seize opportunities and fund projects.
“Competitive pricing and the inherent versatility of the product make it an excellent choice for those who need quick and flexible funding solutions.
“UTB’s recent bridging product enhancements meet the demands of the market for speedy completions.
“Extended use of AVMs, the introduction of dual legal representation combined with slick and consistent underwriting are helping to save UTB customers time and money, the two most important elements to a deal according to most brokers.
“We will continue to enhance and improve our products and service to ensure that UTB delivers what brokers and their customers need.”