A new survey of mortgage advisors has revealed that more than half of them have witnessed rising levels of customer demand for bridging loans since the start of the Covid-19 pandemic.
The survey by Masthaven Bank saw the lender talk with 140 advisors from around the country. In total, 51% of them told the survey that greater numbers of their clients have been asking for advice about bridging loans since the pandemic began. A further 71% stated that they felt that levels of awareness of these types of loans were on the rise throughout the mortgage sector.
According to the results of the Masthaven survey, it is the specialist mortgages area of this market where much of the demand for bridging finance is concentrated. A total of 35% of the advisors that took part in it said that they were seeing greater numbers of specialist mortgage bridging loan applications that would have been applications to standard high street lenders pre-pandemic.
Among the reasons for the increased demand, 41% of advisors cited disruptions to mortgage processes caused by Covid-19. Another 34% indicated that revived interest in home refurbishments among clients was a key factor, while the need to raise money was named by 19%.
Richard Deacon from Masthaven told Financial Reporter that:
“Bridging finance has always been a useful tool, but in the current market, it has really come into its own, growing in popularity as both brokers and borrowers look for flexible short-term finance solutions.”
After completing a CeMAP course, this is another potential avenue of business that mortgage advisors can pursue.