An overwhelming percentage of the UK brokers believe that the current UK lending environment is strong and shall continue to be strong, at least until the end of the year. This data came from a general survey made by Shawbrook Bank on 187 UK brokers.
The same survey, however, showed that 59% of the participants consider the biggest barrier in front of real estate purchases all along 2021 to be the potential buyers’ and investors’ financial power. This becomes a bigger concern at the end of the support schemes granted by the government, like Bounce Back Loans or furlough.
A third of the 187 brokers indicated another element as the main blocking factor for property buyers. 34% of the respondents named job uncertainty as to the biggest obstacle for purchases.
The survey also showed the various challenges that UK brokers have been facing so far and are most likely to keep encountering during the following months of 2021. 76% of the responding brokers indicated the valuation issues as their biggest challenge.
As for the high confidence showed by real estate brokers for the 2021 market, the explanation comes from the head of sales of Shawbrook Bank, Mr. Gavin Seaholme. He explains that there is no surprise that the UK brokers remain highly confident about the evolution of reals estate for the remainder of 2021. The reason is the situation before the pandemic when the real estate market was very powerful and kept being strong during 2020. Thus the general confidence of brokers remains at high levels.
Now Loan also highlights the importance of brokers and their support for potential clients throughout the purchase process and automatically for the acquisition dynamic. Their advice can determine whether they make a new acquisition or remortgage.
Although the finance levels of buyers and landlords continue being the major setback on the real estate market for the following six months, this can be balanced by good information regarding the multiple financing options available these days. The brokers are encouraged to increase their efforts in this direction and ensure that each potential client has access to the most suitable funding service.
The brokers have now the key role in the market’s increase, however, the lenders are encouraged to support them as much as possible.
Shawbrook Bank’s head of sales declares that they have implemented measures to get easier over the valuation challenge. Thus they have increased the AMVs use and created a wider valuation panel. Shawbrook also implemented a dedicated panel for Bridging cases. They continuously search for new ways to remove all existing concerns among their broker community.
About Bad Credit Loans
The good news for potential real estate buyers and equally for brokers is the wide range of lenders that give solutions for those having a bad credit score. Your credit score is a financial history file that is kept by the main banks and financial agencies for each individual or business. A good credit score increases your chances of receiving a loan to buy a new property.
Each financial transaction you ever made counts. However, solutions have been developed even for those with bad credit scores, or those with no financial history. There are three types of loans usually granted for those with bad credit: secured loans (the increased risk is compensated by collateral), guarantor loans (the loans is guaranteed by a family member or a close friend), personal loans (they have big interest rates and a strict amount limitation).
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