Alan Margolis, head of bridging at United Trust Bank, said: “We can confirm that the positive sentiment about business volumes expressed by our broker respondents in the survey has been reflected in reality with the Bridging Department as busy as ever.
“The sheer variety of cases also demonstrates just how much a need there is for brokers to be able to pick up the phone and speak to an experienced individual who can understand their client’s unique circumstances and requirements.
“On the other hand, the MCD findings were a little alarming. Those of us already familiar with FCA regulated loans will probably not have too many issues with implementing and complying with the MCD, for instance by switching from a KFI to an ESIS.
“However, the scope of regulation is being widened by the MCD with some currently unregulated buy-to-let loans becoming regulated. But the most significant impact will be on the second charge market which is currently governed by the Consumer Credit Act and the FLA’s Consumer Credit Sourcebook; here the MCD will fundamentally change how such loans are processed by brokers and lenders alike and 21st March 2016 is not that far away”
The survey also asked brokers for their views on the potential impact of the Mortgage Credit Directive (MCD) on bridging business. Opinions differed widely, but what stood out was the high percentage (39%) of brokers who felt they didn’t know enough about it to answer.
Some 44% of brokers responded that they thought the MCD would only slightly affect the bridging industry and 15% felt that the MCD would have no effect. Just 3% believed the MCD would substantially affect the bridging industry.