News review


Mini boom in bridging could reach £1bn by 2013 says experts


by sarah Davidson


Bridging lenders Montel- lo Finance and West One Loans have predicted a “mini boom” in bridging with West One claiming the market could hit £1bn gross by the summer of 2013. Montello published a re-


port last month claiming the bridging market “book val- ue” is between £415m and £755m, less than 1% of the mortgage market overall. It added that while global


markets remain volatile, the conditions in the current UK mortgage market are allow-


ing established bridging lend- ers to capitalise. Montello also revealed in-


vestors could make a return of 8.5% per annum by com- mitting cash to the Montello Income Fund, which pro- vides the lender finance to lend to its customers. Meanwhile West One said


growth in the bridging sector would be driven by the hous- ing shortage, the demand for property investors and buy- to-let investors and the lack of alternative funding. By the end of the first half


of 2011 West One calculated the bridging market would be


Montello latest bridger to seek FSA approval


by sarah Davidson


Montello Finance is the latest bridging lender to confirm it plans to apply for regulated status from the Financial Ser- vices Authority. Christian Faes, managing


director of the lender, con- firmed plans to submit an ap- plication to the FSA as soon as next month. George Patellis, currently


a consultant with Montello and formerly chief executive of Tiuta, has spent the past month helping the business ready itself. Faes said: “We want to


adhere to the best standards possible for bridging lenders. “We’re worried that there is the perception that bridg-


4


“Conservative estimates suggest lenders are writing £750m worth of business every year at


the moment”


valued at about £750m for the year. Duncan Kreeger, chair-


man of West One Loans, said: “The amount the in- dustry is lending has grown significantly over the last six months. “Conservative estimates


suggest lenders are writing £750m worth of business ev- ery year at the moment.”


Kreegar said there was no


reason why growth in the pri- vate rented sector and strict lending criteria on the high street would not continue to drive the bridging market. He added: “In those cir-


cumstances the market will grow at a similar rate over the next two years. That will see us break the £1bn barrier by the summer of 2013.” Others were less sure that


the next few years would con- tinue to see rapid growth. Alan Margolis, head of


bridging at United Trust Bank, said he believed the so- called boom wouldn’t last.


Masthaven increases max loan size to £5m


by Yuan phoon


Masthaven bridging finance has increased its maximum bridging loan size to £5 million. The larger short-term


loans are for residential purchases and remortgages and are available throughout England and Wales. The maximum loan to value on these larger loans is 65%. There are no upfront


Faes: wants best standards possible


ers fly close to the wind but we believe getting regulated will put us among the most reputable lenders in the marketplace.”


bridging introducer september 2011


administration fees payable, combined with daily interest and no exit fees. Richard Deacon, sales


and marketing director at Masthaven, said: “We are going from strength to strength. This latest addition to our offering


just proves that we are growing in all the right areas. “The investment from the


William Pears Group has really boosted our appetite to lend and the fact that we can now lend up to £5m on residential property at up to 65% is a huge plus for myself and the rest of the sales team.” Fahim Antoniades, group


director at London broker Mortgage Centre IFA, said: “If you want to capture more premium business in the prime central location you’ll have to set your bar just that bit higher. For the bridging sector there are larger opportunities out there.”


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