< p>Confidence is at a new low; the UK’s credit rating has suffered a fresh blow, as major agency Fitch recently placed it on negative watch for a downgrade, and some critics believe the Help-to-Buy scheme could possibly lead to subprime lending again.

Fitch’s warning came days after Chancellor Osborne unveiled his latest Budget. The jury is still out on whether Osborne’s latest performance was an omnishambles, but holes are beginning to emerge from the government’s plans and, with it, confidence is wavering.

Moody’s became the first to strip Britain of its gold-plated triple-A assessment last month, and the recent OBR growth forecast figures, also downgraded, has almost certainly knocked confidence further.

The FLS scheme is still stuttering; with recent figures showing net lending fell in the last quarter. The mortgage sector has been gaining a lot more than the business community.

Critics of the Help-to-Buy scheme, announced at the Budget, which will essentially use taxpayer cash to give equity loans to homebuyers and guarantee mortgage lending, say that it is dangerous and could threaten to inflate property prices leading to another housing bubble.

Others have also pointed out the ambiguity over whether those purchasing second homes and non-UK domiciled homeowners would be allowed access to the mortgage guarantee. These very points were raised in Deputy Prime Minister’s Questions two days ago, where Nick Clegg stated that it was not the “intention” of the scheme but did admit that details were still being ironed out.

The FSA and BoE have recently relaxed the barriers to entry for new bank entrants into the marketplace to boost competition to existing banks, which is welcome news. However, the £25 billion capital shortfall the BoE is demanding banks to fix by the end of the year, identified by the Financial Policy Committee, could have a detrimental effect on banks’ lending powers. It has even riled Vince Cable: “The idea that banks should be forced to raise new capital during a period of recession is an erroneous one.”

Bridging on the other hand has gone from strength-to-strength this quarter and confidence continues to boom.

Product innovation has been prominent this year so far, and even the announcement yesterday that SPF now has access to a 0.5 per cent bridging product is, not just yet another welcome initiative to the industry but, testament to that.

Shawbrook slashed its bridging rates across the board from 0.65 per cent. Dragonfly’s bridge-to-let product is flying off the shelves; and Precise is close to announcing new products to the market.

Processes are being improved and streamlined too. MTF recently completed a £500,000 bridge in just 17 hours. The case particularly highlights how quickly and efficiently deals can be turned around today.

New lenders, such as Ortus Secured Finance, have launched to the market, and a number of others are finalising processes and rate cards before launching in due course. Some of whom are big names and have previously funded lenders in the industry, so their presence, with larger wallets, is one to look out for.

Ranks are beings bolstered across the sector but recent appointments at Aldermore Bank and United Trust Bank are ones to take note of late.

Many brokers are diversifying their businesses into commercial finance and some commercial lenders are launching new residential development products. However, although brokers are increasingly becoming aware of the uses and professionalism of bridging, the negative perception and confidence of this option is still a persistent problem when brokers place deals.

Recent polls by Capital Bridging Finance, indicating that 62 per cent of brokers are calling for improvements to solicitors’ performances, and United Trust Bank, finding that 43 per cent of brokers believe that poor valuations were the most common stumbling block in a deal, emphasise some areas brokers are calling to be improved.

Next month’s AOBP Forum will help to provide a platform for brokers to question a panel of high-profile lenders on these issues and other topics, which will help to correct any misconceptions and negative perceptions.

Bridging is definitely on the up and brokers are beginning to become more aware of the uses that short term finance can facilitate for. However, government fudge looks like it’s back with the recent Budget; FLS is still seemingly not working and the details of the recently announced Help-to-Buy scheme is ambiguous and details are still being ironed out.

The FSA disbands at the end of this week, and we eagerly await what confidence the FCA’s tenure brings.