Buy-to-let investments are the most popular use for alternative lending, according to a poll of financial intermediaries.
In the recent 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% in the West One Broker Sentiment Survey in August 2012. 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. And unless someone is willing to put their money where their mouth is, that won’t change. That’s why alternative finance and peer-to-peer lending models are proving so popular. Particularly since deals can be done in days rather than months.”
Despite the reported increase in popularity, the majority of mainstream borrowers do not understand alternative finance.
More than three quarters (76%) of brokers surveyed said their mainstream mortgage clients do not understand the industry or the processes involved.
For Buy to Let independent whole of market mortgage advice contact Integrity IFA on 01316530588 our use our online mortgage calculator to search the Best Buy to Let Mortgages available www.integrityifa.com . Integrity IFA independent mortgage advice in Edinburgh and the Lothians.
