Landlords turn to Bridging Loans as BTL Finance becomes Harder to Secure

05 September 2012 Categories: News

Landlords turn to Bridging Loans as BTL Finance becomes Harder to Secure

Bridging loan specialists, West One loans, recently conducted a survey in which 98% of the brokers interviewed reported writing more BTL business than six months ago. This coincides with the results of a landlord poll conducted by LSL last month that showed nearly half of the 1464 landlords interviewed believed it is harder to obtain BTL mortgage finance now than it was 12 months ago…and as a result they are having to turn to other forms of finance, such as bridging loans, as a way of making additional property purchases and expanding their portfolios.

On average, 38% of broker business is now from BTL landlords looking for bridging loans, which shows that landlords still have enough confidence in the market to pay higher loans fees for a short period of time while they secure high-street finance. In fact, 48% of the landlords questioned by LSL consider the market to be productive enough in terms of profit right now to warrant additional property purchases.

Chairman of West One Loans, Duncan Kreeger, commented on the changing attitude to BTL finance saying, “Professional landlords are finding it difficult to get access to finance from high street lenders. Even when they can, it’s painfully slow.

“Over the last six months, they have woken up to the fact that bridging loans provide a rapid solution to their problem. And as property investors embrace bridging, brokers are seeing the benefits.”