ASTL launches report on consumer perceptions of bridging finance
The main objective of the Association of Short Term Lenders (ASTL), is to protect and promote the interests of the short-term lending market and our member firms. There are many aspects to this, from providing access to expertise, insights and market trends and fostering high standards through our Code of Conduct, to representing the market’s interests to the Regulator and HM Treasury, among other stakeholders.
Beyond this, we aim to bolster understanding and awareness of the uses and benefits of short-term lending, also known as bridging finance, among the wider population – whether that be the media or potential future borrowers. To that end, we initiated this research in collaboration with YouGov, in order to gain a sense of where bridging stands in the perception of the average person.
Short-term finance has been around for over 60 years, but truly came into its own following the Credit Crunch, when mainstream lenders became more prescriptive, in their lending assessments, for a reasonable period of time. Over the years, the growing popularity of this form of finance, and the introduction of new lenders and funding lines, has driven down costs and made this niche form of lending a more accessible, competitive and adaptable tool for modern homeowners and property investors.
Nevertheless, it seems that only a relatively small proportion of the population truly understand this market, and those that are aware of it are often victim to somewhat outdated impressions of it as expensive and high risk at best, and at worst, as a forum for price-gouging and other poor practices.
As we look forward to 2023, the ASTL is focusing on righting this misconception. To do so, we are taking a multipronged approach, which includes working with HM Treasury and the FCA in order to get bridging’s contribution to the UK economy on the map, as well as pushing for greater coverage and education in the media.
This report aims to act as a benchmark for progress, as well as highlighting where we need to focus most when it comes to changing public perception. It is our hope that this and subsequent reports will start to show positive trends in terms of the public’s view of this vital, and increasingly competitive, route to funding.
Vic Jannels, CEO of the ASTL
See full copy of the report here https://theastl.org/wp-content/uploads/2022/10/ASTL-WHITEPAPER-CONSUMER-PERCEPTIONS-OF-SHORT-TERM-FINANCE-2022.pdf