United Trust Bank ("UTB") conducts regular broker sentiment surveys, and the most recent survey has revealed that around 57pct of brokers operating in the fields of bridging, development and asset finance expect lenders’ credit policies to stay largely unchanged over the next 12 months.
There were slight variations between brokers operating in the different sectors but, on the whole, 57pct of brokers expected lenders to keep their credit policies broadly similar, 32pct expect them to tighten and 11pct thought that lenders would relax them.
Harley Kagan, Managing Director - United Trust Bank, said, “It’s good to see that most brokers believe lenders are already operating with an eye on the future. However, it’s perhaps unsurprising given the level of uncertainty surrounding Brexit, the UK economy and the residential property market, that many brokers feel some lenders will be tightening their purse strings over the next 12 months. Anecdotally we’ve heard from some brokers that lenders who were once happy to consider certain loans are now being far more cautious even with well-established customers. This ambiguity will frustrate brokers, but as long as they’re aware that experienced, ‘through the cycle’ lenders like UTB are still very keen to lend, they should be able to find quick and competitive funding solutions for their clients.
“From a broker perspective there are obvious advantages to dealing with a specialist lender which can quickly adapt to changing market conditions and be flexible in applying their credit policy to marginal cases. At UTB we consider every proposal on its merits and when required will use our knowledge and experience to formulate a solution which will hopefully give the borrower and the broker what they need whilst satisfying the Bank’s risk appetite.”
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