Bridging interest rates and charges to hold steady

Robyn Hall

September 28, 2012

Despite increased competition in the sector 63% of brokers don’t expect to see bridging lenders’ interest rates and charges change in the near future.

The majority of brokers (62%) also indicated that they expected to place increasing levels of bridging business over the next 12 months.

Although 67% of brokers responding to the survey suggested that the current economic environment had had a negative effect on their business, 47% of brokers were optimistic about the next three years.

Only 3% of brokers surveyed said there were worried about their business over the next three years while 27% said there were unsure.

Alan Margolis, head of bridging at United Trust Bank, said: “Most brokers accept that it would take a significant change in the Bank of England base rate for it to influence bridging lenders and with disappointing economic growth forecasts and more quantitative easing on the way, a change from the Bank of England in the near future looks unlikely.”

Margolis added that broker attitudes were “encouraging” about where they see themselves in three years.

He said: “These are undoubtedly still very tough times for many people, however some brokers are flourishing.”

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