Buy-to-let investments are the most popular use for alternative lending, according to a poll of financial intermediaries by peer-to-peer bridging lender West One Loans
In its survey of 350 mortgage brokers, a record 36% of intermediaries listed buy-to-let as the most popular use for bridging loans. This has increased dramatically from 23% 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 survey also showed that more than three quarters of brokers said their mainstream mortgage clients do not understand the industry or the processes involved.
According to intermediaries, the bridging industry as a whole has seen growth of 49 per cent over the last 12 months.