Contents


www.mortgageintroducer.com • September 2011


Bridging has become something of a battleground in the past couple of months. Competition is the order of the day and new entrants are shaking things up more than even six months ago. Rates are dropping and anecdotally brokers say criteria is easing marginally if you know where to go. But how much of this is simply noise? On the one hand brokers say compe-


tition and dropping rates is great news for their clients. On the other, the best rates seem to be for the benefi t of grab- bing headlines rather than business. Despite the lowest rates on the


market hovering around 0.75% a month most bridging loans are actually written between 1% and 1.5%. The reality seems to be that though


there’s a lot of talk on rates, there’s less movement than the talk suggests. As well as the competition buzz the


past couple of months have also seen various lenders have a stab at pinning down the size of the bridging market. There is very little hard fact to help


achieve this. No offi cial statistics exist to quantify the gross lending done in the sector and no one is really sure how many lenders there are out there. One lender says the market is £1bn


a year and another says its £500m. No- one can say either is right or wrong.


Editor


Sarah Davidson, 020 7502 8225 Sarah@thepublishinggroup.co.uk


Reporter Yuan Phoon, 020 7502 8220 Yuan@thepublishinggroup.co.uk


Editorial Director


Nia Williams, 020 7502 8231 Nia@thepublishinggroup.co.uk


Issue 2 September 2011 Publisher


Robyn Hall, 020 7502 8229 Robyn@thepublishinggroup.co.uk


Associate Publisher


Matt Bond, 020 7502 8227 Matt@thepublishinggroup.co.uk


Subscriptions Andrew Goldsmith, 020 7502 8220 Andrew@thepublishinggroup.co.uk


TIUTA


Printed & distributed in England by The Magazine Printing Company Ltd Copyright Mortgage Introducer Limited; Published by TPG Ltd under licence. Fergusson House, 124-128 City Road, London EC1V 2NJLtd


Montello Finance has made a valiant


attempt at assessing the current market in a report it has distributed to inves- tors in its income fund. The team there estimates, with various market data supplied by different lenders, that the total bridging loan book in the UK is somewhere between £415m and £755m. Without confi rmation from an inde-


pendent trade body – the Association of Short Term Lenders or the Council of Mortgage Lenders – it is hard to know how accurate this is. And to date there is little appetite


from trade bodies to verify this data publicly. But with so much emphasis on the


professionalisation of the bridging market, perhaps it is something the market should think about attempting to pinpoint properly. Information is the fi rst step towards


transparency and in turn leads to a professional sector and market participants – the other thing everyone is making a lot of noise about. Maybe it’s time to put some money where our mouths are.


Sarah Davidson Editor Bridging Introducer


The text and cover papers used in this publication are sourced from sustainable forest products and are fully recyclable.


4 News Review


6 Bridging In Depth The only way is ethics


16 Industry Comments Expert views on the latest developments in bridging


20 Build a Better Bridge Your questions answered


22 Round-table Getting your paperwork in order


28 Cover Story Tiuta embraces its year of change


32 In My Opinion How brokers can give clients business support


34 The Last Word Why bridgers are reluctant to lend outside the M25


38 A Bridge Too Far Essential information and don’t forget our competition


Cover and pages 28-31 photos: Robin Beckham ADVICE TO READERS


Information carried in Bridging Introducer is checked for accuracy, but we recommend that you make enquiries and, if necessary, take legal advice before entering into any transactions. Any views or opinions expressed in this magazine are solely those of the author and do not necessarily represent those of The Publishing Group Ltd. All rights reserved in respect of all articles, drawings, photographs etc published in Mortgage Introducer anywhere in the world. Reproduction or imitations of these are expressly forbidden without permission of the publishers. Editorial contribu- tions requiring an answer should be accompanied by a stamped self-addressed envelope. No responsibility can be taken for contributions lost or damaged in the post. Conditions of sale and supply: this periodical is sold subject to the following conditions, namely that it shall not without the prior written consent of the publishers be lent, resold, hired out or otherwise disposed of in a mutilated condition or in any unauthorised cover by way of trade or affi xed to any advertis- ing, literary or pictorial matter whatsoever. All advertising is subject to the terms of our current rate card.


The Straight-Talking Bridging Loan Company property solutions


0870 7777205 www. t iutapl c . com


Minimum Loan £30,000 1 Day - 1 Year Term


BRIDGING INTRODUCER SEPTEMBER 2011 3


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