“We need to know which lenders can do what and in which area or areas of the country. this is where knowledge plays a massive part of the specialist’s role as no two enquiries are the same”


the M25, it is considered that investment prospects for property developers and landlords are not limited geographically and from its experience so far the potential returns on capital are regularly more attractive outside of the capital. Further, it is considered beneficial


for larger lenders to have a wider geographical distribution on its balance sheet rather than been over- exposed in specific regions. the principles to assessing a loan


application are consistent regardless of where the security is located or the customer resides. Providing the property represents adequate collateral and the exit route can be substantiated, then Precise Mortgages will consider that case anywhere within england, Wales and Scotland.


peter turner, commercial director, Atom


the bridging market has expanded hugely over the last couple of years


with some lenders looking to specialise in certain hot spots in the country. this is typically London and within the M25 where they feel the risk is lower and the ability to move property on is higher. i do not see this as an issue as


if this patch is where particular bridging lenders wish to focus and they are providing the best terms


to win the business in this area, backed up by high quality service, then those are the rules we must follow. As a bridging loan specialist with


introducers all over the uK we need to know which lenders can do what and in which area or areas of the country. this is where knowledge plays a massive part of the specialist’s role as no two enquiries are the same. given that there are so many


lenders in the market now, the right contacts with the right lenders need to be developed so you have a greater chance of being able to provide a solution for your introducers and their clients.


paul brett, business


development director, borro


the word reluctance suggests a


conscious decision not to look beyond the boundary of what is after all just an arbitrary man made border. However, there is no doubt that property within the M25 has come to represent that part of the uK housing market which has been most insulated from the overall market malaise. it then follows that the main


reason that certain lenders limit their offering to the confines of the ‘golden circle’ lies in their positive assessment of the risk


profile represented by this defined area. the confines of the M25 also provide a useful template representing the engine room of the post industrial uK economy with its perceived value as an area with better employment figures and therefore continuous employment, thus improving individual credit risk. However, if every lender took the


decision to lend only to those areas of the country which it regarded as being able to resist gravity in the face of a national downturn, then clearly there would be large parts of the country where it would be impossible to raise finance against property! equally the bridging community


offers a short term facility whose primary consideration is, first and foremost, the proper valuation of the property and a convincing argument about how a client is going to exit the arrangement. the issue of future property valuation only becomes an issue if the client is unable to repay the loan, which suggests that the exit dialogue is not rigorous enough in the first place or the type or value of property was not understood properly at the outset. going back to the question


of reluctance, fortunately there are many bridging lenders who lend across the uK. bridgebank, blemain and goldentree are all based outside London and the Home counties but have always maintained a uK wide interest in their operations. Masthaven also lends on a


national basis. in my view there is little evidence to suggest that bridgers are becoming more proscriptive about only lending within the M25 and as the competition increases further, it is unlikely that a London-based lending criteria will sustain lenders into the longer term n


Bridging introducer september 2011 37


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