Buy-to-let investors increasingly using alternative finance
A record 36% of intermediaries list buy-to-let as most popular use for bridging loans
Your support helps us to tell the story
As your White House correspondent, I ask the tough questions and seek the answers that matter.
Your support enables me to be in the room, pressing for transparency and accountability. Without your contributions, we wouldn't have the resources to challenge those in power.
Your donation makes it possible for us to keep doing this important work, keeping you informed every step of the way to the November election
Andrew Feinberg
White House Correspondent
Buy-to-let investments are the most popular use for alternative lending, according to a poll of financial intermediaries by peer-to-peer bridging lender West One Loans
In its survey of 350 mortgage brokers, a record 36% of intermediaries listed buy-to-let as the most popular use for bridging loans. This has increased dramatically from 23% in August 2012.
Duncan Kreeger, director at West One Loans said: "A generation of renters are demanding somewhere to live and a growing army of landlords need loans to make the required investments. The latest sky-high rental figures demonstrate that hunger for more investment. But cash-strapped banks are still hesitant to make a serious commitment. The supposed upturn in traditional lending isn’t meeting this need. And unless someone is willing to put their money where their mouth is, that won’t change. That’s why alternative finance and peer-to-peer lending models are proving so popular. Particularly since deals can be done in days rather than months."
Despite the reported increase in popularity, the survey also showed that more than three quarters of brokers said their mainstream mortgage clients do not understand the industry or the processes involved.
According to intermediaries, the bridging industry as a whole has seen growth of 49 per cent over the last 12 months.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments