Reflecting on a record-breaking month across the industry

March was a record-breaking month for the property sector, with mortgage lending up a whopping 64 per cent on the previous year, reaching its highest since April 2008 with a total of £17.1 billion borrowed for property purchases, according to the British Bankers' Association.

Scott Hendry
28th April 2016
Scott Hendry

It was a record month for us here at Together too. For the first time in our 42-year history, we lent over £100 million! With a total of 697 loans across all our products – including bridging finance, auction finance and commercial loans, plus first and second charge mortgages – we delivered a combined total of £105 million new lending.

101 of those loans were for auction finance which has enjoyed strong growth in the first quarter of 2016. Whilst this was, of course, fuelled in part by the stamp duty hike that came into effect in April, with property investors keen to avoid paying an extra 3 per cent in tax,  it’s also thanks in a large part to our speed of service and our flexible approach, which sets us apart from the mainstream.

Speed is of the essence when it comes to providing auction finance, as often the buyer has only 28 days, or even less, to complete the purchase. Often such timescales can prove difficult for a traditional lender, but as a specialist finance provider, we can react much more quickly. This fast and flexible approach is what we call common sense lending, and as our March figures show, it’s definitely working!

So how will the buy-to-let changes affect the market, now that the stampede to avoid the 1st April deadline has passed?

Well, it’s too early to make a judgement as it will take time for the market to settle, but Together recently carried out research which indicates that the widespread perception is that the Chancellor’s attack on the buy-to-let market will affect the residential side of the industry much more than the commercial.

We  surveyed 2000 UK adults in April and found that only 13 per cent  believed that the buy-to-let changes, such as the increase in stamp duty, will stop property investors and professional landlords from buying more properties.

However, the research showed that many more - over a fifth in fact - believed that these changes would stop homeowners buying second properties for holidays or letting.

This has already been highlighted in the media, amidst claims that those who will be hardest hit by the buy-to-let reforms may well be parents trying to help their kids buy their first home.

The property market has seen strong growth so far this year and, according to Rightmove, house prices jumped £3,800 in April - up 1.3 per cent on March, and a 7.3 per cent increase when compared to April 2015.

With demand outstripping supply in many areas, property professionals and commercial investors are battling for the best properties, and this is where the alternative finance sector can step in.  

Whether it’s for commercial, semi-commercial or residential properties, it’s often about acting fast and decisively if you want to be the winning bidder, and with a specialist lender on your side, you’ll be able to put your money where your mouth is.

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