It’s a tricky time for brokers and borrowers at the moment.
Fortunately the specialist finance market is still providing a safety net for property investors.
Almost daily it seems mainstream lenders are pulling mortgages and other products from the shelves.
It’s a pity to see this, especially after all the recovery we had to fight for following September’s mini-Budget.
Between May and June 2023, the total number of UK mortgage products, both residential and BTL, fell by 682, according to Moneyfacts.
It doesn’t seem that high street lenders will be able to bounce back any time soon either but just because supply is waning, it doesn’t mean demand isn’t still there.
Completions of bridging loans reached just over £1.4bn in the months leading up to the end of September, a 15.9% rise on Q2.
Applications also rose to £7.9bn, while loan books reached a record of more than £6.1bn.
The negative sentiment we’re currently seeing isn’t putting off as many property investors as some may expect.
Demand from foreign buyers may continue to rise as more people migrate to the UK, and investors are funding the conversion of London’s empty offices into new apartments, hotels, and even laboratories.
These are all scenarios specialist finance can support.
So as mainstream lenders pull deals from the shelves due to uncertainty, it’ll be up to bespoke providers to offer stability to investors.
