Round-table
will tell as to what they’re doing. LG: i agree it’s much more dynamic than it used to be and now only the good brokers are left. DW: the key for everyone is that partnership’s important. clearly you don’t want to be originating business which lenders are suffering losses on. good brokers firmly look at exits and do make sure they are trying to cover off as much potential downside as possible for the lender. We are much more pro-active now protecting the lender. LG: i don’t disagree, it wasn’t meant to be a comment which was inflammatory, far from it, we must all work in partnership. the point that was being made was that the assessment of risk and the assessment of a realistic ability to exit a bridging loan probably isn’t going to hit the same sort of score or view between a lender and a broker. DW: But that’s why some of the lenders in this space are looking at the long-term products because they appreciate and understand that liquidity isn’t out there within the high street market so maybe
they can support the borrower for a longer-term than just a shorter period in 12 months. the guys at Precise and Dragonfly have bred a product where if for whatever reason there isn’t obvious refinance available within 12 months then they are more than content to keep the borrower for a 36 month period when maybe the landscape will have changed. Alan Cleary: competition in this market is moving. Some of the banks have exited, the whole world has changed over the last few years. As a result of that the bridging market is actually a benefactor but i think certainly where we’re coming from we’re bringing funding into the space, that’s absolutely good for the whole industry for brokers and other lenders included. this is not a saturated market where new entrants are actually going to cause dysfunctional behaviour. this is a market that has potential to grow, it probably needs some seed capital to go there to help it along and lenders like us and others bringing cash in will be good for the whole market. GL: i think new lenders like
Market leading criteria:
✔ No regional lending restrictions on pricing or criteria ✔ Ability to lend greater that 100% of purchase price (Subject to additional security)
Short Term Lending 24 BriDging introDucEr july 2011 Mortgage Introducer
Creative.indd 3
www.precisemortgages.co.uk
Market Leading Criteria
27/06/2011 18:42
yourself also have an ability to help on the education side of things. You deal with a different marketplace through the mortgage business and those people who place business that way maybe don’t understand what bridging finance is all about. Bridging finance is not rocket science but what it is, is it’s time consuming to make sure you have the right information to hand and again that goes down to the education that people are aware of what it is all about because it is old fashioned underwriting.
What has changed from a broker point of view?
Fahim Antoniades: Bridging is changing. the new entrants to the market are definitely adding new flavour to it all. Product innovation is an area which is quite healthy at the moment. Market conditions have forced bridging lenders to innovate and fill in a gap which wasn’t there before. GL: Longer-term lending is a clouded issue because that actually isn’t bridging finance.
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