More and more buy-to-let borrowers are turning to bridging loans because they are being shut out by high street lenders.
In a survey of 350 mortgage brokers carried out by peer-to-peer bridging lender West One Loans, a record 36% of intermediaries listed buy-to-let as the most popular use for bridging loans.
This has increased dramatically from just 23% when they were asked the same question in August last year.
Duncan Kreeger, director at West One Loans, said: “A generation of renters are demanding somewhere to live – and a growing army of landlords need loans to make the required investments.
“The latest sky-high rental figures demonstrate that hunger for more investment, but cash-strapped banks are still hesitant to make a serious commitment.
“The supposed upturn in traditional lending isn’t meeting this need.”
According to intermediaries, the bridging industry as a whole has grown 49% over the last year.
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