Increasing numbers of mortgage brokers are considering doing business in the commercial mortgage arena, according to the ifs School of Finance.
The number of brokers taking the ifs Certificate in Commercial Mortgages (CeCM) qualifications has been steadily increasing in recent months.
Almost 300 brokers took the CeCM qualification between January and May 2008, and ifs expects numbers to increase in future.
The ongoing turmoil of the credit crunch, and the resulting stagnation in the residential property market, may be responsible for the move to commercial mortgage broking.
The ifs School of Finance says buy-to-let business is likely to continue to grow despite the credit crunch, but believes the market will focus more on professional property investors.
Mark Roberts, head of financial regulation at the ifs School of Finance, says: “The most recent NACFB member survey suggested that buy-to-let mortgages was an area of big growth in 2007 amounting to £9.7bn of business (compared to £4.7bn in 2006).
“Brokers should not be put off by tales of doom and gloom in the buy-to-let sector following the credit squeeze because whilst the amateur buy-to-let investor may well have had his day - as a result of declining property prices and a lack of mortgage credit - professional investors with large property portfolios appear to be doing very well indeed.”
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