According to the latest research from United Trust Bank, they have revealed that 14.5% of asset finance brokers corresponding to their latest Broker Sentiment Poll believe the pricing in the asset finance section is unsustainable. On the other hand, there are 37% expecting to see lender pricing increase within the next 12 months.
71% believe that the current lender pricing is suitable pricing, while a further 14.5% suggest pricing is too high. The reduction in costs are marginal, however, they do provide buy-to-let investors with a potential annualised saving of £234, £144 and £36 respectively on a £150k mortgage.
Furthermore, the Organisation for Economic Cooperation and Development (OECD) expects that the UK economy will rise by less than 1% in 2019 and 2020 if Brexit carries out smoothly but may fall into recession in a ‘no deal’ situation. Even though 71% of brokers are in favour of the current pricing, funders may feel the need to review their strategies this side of 31 October, especially if it seems like a no-deal outcome is most likely.
About Stuart Mosley
Stuart Mosley (CeFA, CeMap, CLTM) founded SJ Financial Solutions in June 2005 having spent 12 years with big corporates such as Halifax and Santander. He felt the personal touch and straight speaking was missing from financial and mortgage advice services and set up SJ Financial Solutions to change this.
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