According to recent research, brokers are expecting the most growth in the next 12 months to come from buy-to-let and secured loans
According to recent research, brokers are expecting the most growth in the next 12 months to come from buy-to-let and secured loans.
The survey, carried out by Blemain Finance, showed that 83 per cent of brokers believe that buy-to-let will be the most popular product over the next year, with 76 per cent voting for secured loans.
The research also appeared to show that intermediaries’ most popular product over the past six months had also been buy-to-let related with 45 per cent of the brokers voting as such.
Gary Bailey, Sales & Marketing Director of Blemain Finance, said: “The findings from our survey show that more and more borrowers feel able to invest in buy-to-let as well as utilise equity in existing property. This is perhaps an even better indication of confidence returning to the market.
“There’s no doubt that any recovery in the housing market will be a gradual one. We’ve already seen a number of leading indices recording a much anticipated return to house price growth, although still only small increases at this stage.”
The survey, which was conducted amongst Blemain’s broking partners earlier this year, coincided with figures released in February which stated that over £16 billion was advanced in buy-to-let transactions last year, the highest figure in four years.
Buy-to-let mortgages made up 13 per cent of all mortgages at the end of 2012, with 136,900 loans advanced, up from 12 per cent in 2009 and 9.6 per cent in 2006, according to statistics from the Council of Mortgage Lenders.
Last year saw the highest number of buy-to-let loans advanced since 2008; however, the figure is still far from the 2007 record of 346,000.
A separate survey, carried out by Lancashire Mortgage Company, part of the Blemain Group, also showed that commercial finance is set to be a major source of business for brokers, with over 50 per cent expecting to focus on the sector this year.
Figures appeared to suggest that high street lenders are still restricting their lending to businesses, despite the high demand for commercial finance.
According to the survey, a further 51 per cent of brokers plan to expand into commercial finance over the course of the next year, justifying the increasing potential in this particular sector.
Gary added: “Business owners are still looking for the appropriate finance to grow their business and bridging finance and commercial secured loans are becoming more appealing to them.“
He continued: “Brokers are responding to this demand and adding commercial finance to their portfolio, which will be welcome news to many businesses.”
