The increases in interest rates are tending to constrain what clients can borrow as all lenders calculate affordability based on the cost of the borrowing v. an applicants available income. This means that lenders are seeing a marked decrease in loans & advances made compared in 2022.
A year ago, interest rates were still super low, and activity amongst property investors and business was peaking. This was reflected in mid 2022 by many lenders increasing their minimum loan sizes to reduce the inflow of business, and ourselves experienced long lead times to process loan applications.
Now, we are receiving more pro-active approaches by lenders to garner business through us. This lender activity has I think increased threefold compared to a year ago. It is also interesting that competition seems to be stepping up between lenders. We are seeing minimum loan sizes coming down again, and other activity and incentives being instigated and designed to increase their deal flow.
So despite challenges created by the rising cost of borrowing, those who want to grow their business or acquire property still have plenty of choice in what is now a massive (and increasing) lender market place. We look forward to helping you and your clients find the best deals out there!