Liquidity within the short term lending market will continue but there will be further bumps in the road on account of Brexit and how long it takes for a deal to be ‘thrashed out’. Clearly, the longer it takes, the more caution there will be within the wider property market, resulting in uncertainty with property prices. This will no doubt translate into down-valuations with some deals not proceeding.
The market will continue to move from a ‘one for all’ model, increasingly towards a tailored solution for each scenario. However, innovation by lenders to win business is becoming harder and harder due to the price war which had led us to the point where we are seeing the most competitive rates at 0.44% pm or 5.28% pa – not far off mortgage rates. I do have concerns that, without the right experience, this could result in misuse of short term finance.
Despite that, short term lending is the ‘swiss army knife’ of the specialist sector and there must continue to be education as there are still so many whom remain unaware of how useful short term finance can be. There is no doubt that there are confidence issues within the broker community in using short term finance as a tool.
Brightstar’s service is set up to help brokers that simply need access to the lenders that they can’t place business with directly, but to also ‘hand hold’ where brokers have a tricky case that’s outside of their comfort zone; we have a helpdesk with experts spanning 8 key lending areas, who all talk to each other and together we will navigate the broker to the right solution for their clients.
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