CFI: News Review
Professional investor appetite growing
by Mark Posniak, marketing and operations director, Dragonfly Property Finance
the bridging market is quite simply buzzing. in fact, there couldn’t be more of a contrast between the main- stream and short-term fi- nance markets. there is exceptional de-
mand for finance among professional portfolio inves- tors — and of course the dif- ference relative to the owner- occupier side of the market is that they are more likely
to get it. Professional inves- tors have cash and they have a solid credit history and in this market that counts for a lot.
What we’ve also noticed
is that the number of bigger loans is on the rise. inves- tors, quite clearly, are getting more confident and adven- turous by the day and are increasingly aware that now represents a unique oppor- tunity to add to or develop their portfolios. Buyers, es- pecially cash buyers, are in the driving seat right now and are making their move. Part of the reason the bridging market is so busy,
of course, is the ongoing nervousness among the high street lenders, many of whom are still scared of their own shadows. We’ve dealt with a num-
ber of cases recently where would-be investors have been let down by lenders who, for whatever reason, have decided to change their criteria or replace a Yes with a no at the eleventh hour. it’s not cricket but then these are still extraordinary times. But i would say that at a
more fundamental level, ac- tivity in the bridging sector is being driven by an increased awareness among investors
No shortage of short-term finance news While many of the main-
by Martin Kearns, head of strategic policy, Tiuta
conducting any review of the short-term finance market at present runs the risk of not being able to cram in every piece of sig- nificant news that has been announced over the past couple of months. With standard mortgage
finance availability still un- certain and many potential borrowers not fitting the strict criteria guidelines laid down by the traditional lenders, it is inevitably short- term finance options which can often mean the differ- ence between a purchased property and one that is likely to fall through.
stream lenders are talking a good game when it comes to their appetite to lend, the figures are not yet showing any overwhelmingly positive signs. in news across the sector,
tiuta announced a signifi- cant restructure of our sales and lending operations in april and were also able to announce that our forecast is for £50 million of lending to be available to us over the next couple of months. drawbridge Finance has
rebranded as dragonfly Property Finance to distin- guish it as more than just a bridging lender given that it offers buy-to-let loans, sec- ond charges, development and mezzanine finance. Brightstar Financial,
the specialist distributor backed by tiuta among
50 mortgage introducer MAY 2011
others, continues to grow and develop its range of relationships and product offerings. it has been quick to announce a number of new developments including the addition of Lancashire mortgage corporation to its panel covering commercial and bridging finance. it goes to prove that there
is considerable life in the specialist sector and that while confidence may have waned, demand for such products has never gone away. indeed, with the eco- nomic situation at present and the changing nature of the way we work, specialist solutions are more necessary than ever. However, we recognise
that the impact of the credit crunch and recession continues to be felt and we must be careful to move
at a measured pace. confi- dence, clarity and transpar- ency are key to delivering a sustainable and responsible marketplace for all. Finally, who said the
short-term finance sector didn’t have its fair share of glamour? cue the entrance of Liz Locke, former contes- tant on last year’s the ap- prentice and new develop- ment director at short-term lender, omni capital. While Lord Sugar made the rather bizarre decision at the time to put Stuart ‘the Brand’ Baggs through to the next round instead of Liz, omni have been much quicker to recognise real talent and potential stepping in to say “You’re hired”. She will work directly with head of the omni team, Paul mun- ford, and we wish her all the best in her new role.
of the benefits it can bring. While they were the undo-
ing of many companies and sectors, the credit crunch and recession have been the making of bridging, enabling it to come out of the shadows and become a viable go-to sector in its own right — not a sector you only go to as a last resort. the perception of bridg-
ing among property inves- tors has changed significant- ly over the past three years and that is doing the indus- try no end of good. Bridgers have been there while other lenders have bolted and that counts for a lot.
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