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offering has been that clients can borrow up to 90% of the purchase price of a development property if it was purchased below market value. The only other bridging lender offering this is Tiuta. “We’ve been pretty aggressive in our pricing because it’s important to the broker and the customer that they get a good deal,” says Cleary. “That’s going to be our strategy for the foreseeable future and we’re already developing our next range of products that will come to market at some point soon.” Flexibility is also something that Cleary is keen should set Precise out from the competition. “A lot of the incumbent lenders in this space have a narrow target customer base,” he explains. “We are going for wider criteria and a wider customer base. We’ll lend throughout england and Wales unlike most bridging lenders that only consider properties inside the M25. “We’ll lend in excess of 100% of
the value of the property subject to additional security, we’ll lend against open market value where appropriate and up to 90% of the purchase price if the property’s bought at a discount. “There’s no maximum loan
size, no exit fees and we’ll lend to individuals, limited liability partnerships, companies.” Service is crucial for Cleary who
explains Precise will treat all its customers in a fair manner. It’s not the regulated Treating Customers Fairly, he explains, but it’s the same principle.
“I think there’s a little bit of sharp practice in this market so from the broker’s point of view they’ll be able to trust their customer with us,” he says. “We’re not going to stitch them up if they get to the end of their term and need another three weeks to pay the loan. We promise to treat all our customers in a fair and appropriate manner. We’re not puppy dogs – we’re a commercial
30 BrIDgINg INTrODUCer july 2011
business but fair treatment is important to us.”
Currently that means case by case underwriting and service with the human touch but Cleary, who has been a keen advocate of technology throughout his lending career, is open to automating the process when it makes sense and helps deals get done. “We will make things slicker but right now our focus is making Precise easy for the broker to use,” he says. “Brokers get a verbal yes or no over the phone in minutes usually. If they want a formal approval they need to fill out a decision in principle form and within 24 hours we’ll get back to them with a yes or no. “We can complete and release funds quickly – we’ll work to what the customer needs. If someone needs it in 48 hours we’ll pull out all the stops to make that happen. We have the best part of 100 staff in the business so we can deploy the people we need to make that work.” It’s not just the big things, he says,
it’s the little things that matter to brokers too. On that basis, Precise has set up a free phone number for brokers to use when speaking to underwriters. “It’s a little thing,” says Cleary. “But it counts. Why should the broker pay to speak to us?” They have turned this sentiment on its head. “We value the contribution the
broker makes to us,” he says. “They bring us the deal so we pay a fee that reflects that fairly. As far as I know our proc fees are good and competitive.” Money isn’t being spared on getting the Precise brand out there too – something Cleary is keen to show helps brokers.
“If people recognise the brand it
helps brokers in the selling process,” he says. “Over time we expect to build trust with brokers and our customers which will make it easier to sell the first time and also repeat sell it. A lot of developers need bridging on a repeat basis.”
Not aNother bridge While the clamour going on between bridging lenders in the market at the moment might suggest more activity than the big six mainstream lenders are doing put together, this is not a huge market.
There are suggestions it has flourished in recent years simply because the appetite for non-standard buy-to-let and development loans has dwindled among more traditional lenders. But Cleary explains this market has sufficient longevity and growth potential.
“The short-term finance market will grow in line with the housing market, particularly as there is more demand for buy-to-let finance,” he says. “The private rented sector is
“We’ve been pretty aggressive in our pricing because it’s important to the broker and the customer that they get a good deal,” says Cleary. “That’s going to be our strategy for the foreseeable future and we’re already developing our next range of products that will come to market at some point soon”
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