Round-table
MBE 2011 Round-table: Getting in the game
Short-term finance is hotting up with several lenders launching into the market this year already. Bridging Introducer, in association with Mortgage Business Expo, talks to a panel of experts about what competition means for the market. Sarah Davidson and Yuan Phoon report
The bridging market has seen various new entrants in the past 18 months, how has this changed the market?
Danny Waters: From a broker perspective criteria has relaxed. Businesses that have come into this space over the last 12 or 18 months have increased the markets level of professionalism. You only have to look at where bridging finance was three or four years ago, it was almost seen as lending of the last resort. clearly that’s now not the case due to the lack of liquidity in the high street market. All in all it has increased professionalism and driven down pricing. Liz Locke: in terms of new entrants and changes in the market i think there’s still a lack of clarity about who actually is seriously in the market and to what levels and extent they’re able to lend. i think what it has done is it’s shifted bridging to become a little bit more
institutionalised. We’re seeing a lot more transparency and a lot more clarity, people publishing rates whereas it was a niche and closed market and that’s completely changed. there is a lack of liquidity in the more mainstream market so enquiry levels in the short-term market have definitely rocketed but in terms of then converting them into bridge deals that complete, i think there’s still that sort of middle ground that’s a little bit unsure because there’s still the need for education about bridging and the short-term market. For omni the brokers that we’re talking to and the clients that we’re dealing with there’s still a need for a bit more understanding of how bridging can actually work because obviously it’s more expensive. Robert Sinclair: i think one of the challenges is how we get the right engagement with the right people. Brokers want to pick the
low hanging fruit containing the easy stuff and this stuff is difficult and more complex and that’s the challenge, and more and more entrants with slightly different criteria almost makes that harder for people because they’re continually more and more confused about the options out there and how they work. How we get to that point is why we need more of this kind of event where the industry comes together a little bit more both from a lender perspective and core brokers who really get this and we get that through specialisation from both the manufacturer and the distributor to get the better
Short Term Lending on a plate
www.precisemortgages.co.uk
Mortgage Introducer
Creative.indd 1 22 BriDging introDucEr july 2011 27/06/2011 18:42
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