CFI: News Review


Professional bridgers offer partnership However this is where the


by Liz Locke, development director, Omni Capital


Prime London property pro- vides a great investment op- portunity with prices continu- ing to strengthen, furthering the divide between the prop- erty market in the South east versus the rest of the uK. Such price movements


have been enhanced by the recent influx of international investment on the back of the political upheaval in the middle east and northernaf- rica region, continued natural disasters and the weak pound. as such, competition to ac- quire property has increased making the need to act quickly ever more important.


problem of funding continues to rear its nasty head. Fantas- tic opportunities, individuals and companies have great vi- sion and track records but no access to quick funding. in stark contrast to the re-


covery and resilience of the London property market, banks and high street lend- ers continue to be restrained by heavy capital requirements, excessive bureaucracy and the ever nearing prospect of hav- ing to repay public funds from the mass government bailout. Sentiment from the banking community reflects the feeling that present lending is much like a lottery with no clear in- dication as to which deals will be accepted by credit commit- tees and hence no clear logic in the process. With large blue chip cli-


ents with strong propositions being turned away by banks it feels impossible to predict when high street lending will regain its appetite. Such dislocation continues


to provide plenty of opportu- nity for short-term lenders as a growing trend of individuals and companies are looking beyond traditional forms of funding to alternatives such as bridging. Whilst many successful


bridging companies from the past continue to lend limited sums of private money, more recent en- trants to the industry are available to do business on a larger scale with the combi- nation of private equity and substantial external funding lines. Such a shift is enabling better access to quick and reliable funding supporting


Bridging market buzzing with activity


by Mark Abrahams, chief executive of West One


it is fair to say that the bridg- ing market has been posi- tively buzzing this month. a combination of new entrants, companies rebranding and new products has given intro- ducers an even greater choice of products. moreover the bridging space is attracting an ever increasing amount of private and institutional investment in search of real returns over and above bank deposits and more impor- tantly inflation. one might conclude that


as well as bridging lending becoming mainstream from an introducer perspective, investors funding loan prod- ucts are treating this oppor- tunity as less of an alternative asset class but more as a de- pendable source of secured income which is now firmly part of the investment portfo- lio.as a natural consequence, rates have been trending downwards especially for higher quality first charge loans in desirable locations with an attractively low loan to value. clearly cost of capital is


critical to the bridging com- munity and it will be interest- ing to see how the bridging lenders respond to possible base rate rises over the com-


ing months. For now at least, following the recently pub- lished inflation figures, we can expect more of the same. Perception of the bridging


market today is one of a far more professional, innova- tive and bespoke industry. it could be argued that this has come about as an unintended consequence of the consis- tent base rate cuts over the past two years. this month has also seen


increased speculation of heightened interest in regu- lation within the bridg- ing market. Whilst second charges on principle resi- dences will ultimately fall under Financial Services au- thority regulation it is by no means certain that the entire


bridging sector will even- tually be forced to become regulated. the FSa is known to want


to regulate the buy-to-let market but there has been no indication that commercial loans will become regulated. if regulation were to take hold industry wide, the bridg- ing sector, which is known for its speed of delivery, may find itself stifled by red tape. this would most likely lead


to a withdrawal of some of the private finance and in- stitutional funds now readily available, a smaller commu- nity of lenders and ultimately a rise in rates. this is not a desirable situation for bor- rowers, introducers or the regulatory authorities.


mortgage introducer MAY 2011 51


enterprise in the property market. What is most notable about


some of the new players in the bridging market is the abil- ity to be opportunity led and entrepreneurial in their ap- proach to structuring funding. narrow perceptions of closed bridge property purchase transactions are being bro- ken down and replaced with knowledge led short-term funding providing solutions and maximising profitability. By providing the necessary


first step, bridging companies are not only enabling individ- uals and companies to rebuild their portfolios but are pro- viding a positive boost to the economy. in essence bridging is more than just a last resort for desperate funding, offer- ing not just a service but a trusted partner.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60