Brokers navigating post-Brexit jitters must clarify funding sources and lender appetite, according to Alternative Bridging Corporation.
The principal lender highlighted that predictions of property values crashing post Brexit have so far proved false, and that maintaining the availability of funds and certainty of completion promptly is the priority for brokers and borrowers.
Brian Rubins, managing director of Alternative said: “As is often the case, it appears the threat may have been worse than the promise. The bridging loan market certainly has not fallen off a cliff with demand from borrowers, evidenced by completed loans, both residential and commercial, being at an all-time high for the holiday period.
“Brokers have suffered lost business or encountered delays due to a number of lenders withdrawing from the market due to lost credit lines or market jitters. Accordingly, the number one question has become do you have the funds and what is your appetite for this type of loan?”
Rubins added, “The Brexit effect on our future economy has not yet been, or can be, accurately evaluated, but currently the fundamentals for residential property are fine. There is a shortage of stock, ultra-low interest rates, high employment and the Government is supporting home ownership.