round-table
MBE 2011 Round-table: That’s a wrap
It might sound dull but getting the right bits of paper in the right order can be the difference between a bridging lender saying yes or saying no. Sarah Davidson and Yuan Phoon ask our panel how it should be done
What options are available to brokers who want to arrange a bridging deal?
Kit Thompson: they’ve got two options primarily: either going directly to the bridging lenders in the market or going via a bridging specialist distributor. In the general day-to-day running of estate agency based mortgage broking, brokers don’t necessarily believe they come across bridging opportunities but with a little bit of education they’ll realise there are many opportunities for bridging which is becoming more prevalent for a lot of people.
What are the opportunities brokers should be looking for?
Gareth Lewis: It’s having conversation with the right people isn’t it? Paul Brett: there’s still a lot of confusion in the market but there’s so much opportunity. brokers are busy doing their day to day stuff, and they need more in your face case studies about other deals that have been done and how they’ve been done. I’ve spoken to some brokers who do bridging and they still glaze over. Kevin Thomson: We use bridging where we can find or use short-term
lending solutions or a combination of loans to meet the needs of the broker’s clients. It’s us coming up with the solutions rather than the broker coming to us saying “I need bridging”. It’s more “I’ve got this issue” and we’ve got the solutions. Kit: I agree, unless someone is an experienced property investor or developer that has used bridging before to buy at auction, Joe Public’s not necessarily aware of bridging finance. their broker may specialise in residential mortgages and might not necessarily be turned on to the idea of bridging finance. So there’s a certain degree of education that needs to go on. Yousef Roze: In the last 12 months the opportunities have increased dramatically. there are a lot of new entrants into the sector who have added something new into a sector which was already there. GL: there’s no lender around this table that hasn’t undertaken some sort of education in the past by trying to educate brokers on how bridging can be utilised. the next step is when the specialist distributors are educating brokers again. Where a broker’s time is precious, they are now going to a specialist distributor saying “I’ve got this transaction, is there anything
22 brIDgIng IntroDucer september 2011
you can do?” and it’s that eyes open side of things which packagers and specialist distributors are doing to educate their brokers. Alan Cleary: We’ve got a large database of brokers and I suspect a lot of them have been focused on residential mortgages in the past and don’t know what the options are. there’s certainly some education going on to spread the message that there are more options for brokers and master brokers.
What are master brokers doing to bring in business actively as opposed to receiving business that comes their way anyway?
Kevin: there are brokers who have switched onto specialist distributors for that advice not only on how we can engineer the scenario around into a dealmaker but also where it should go and where we can use our expertise. but I’m sure there are other brokers out there going
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