BCFI: News Review
Bridging lending to reach new highs By Yuan Phoon
gross lending in bridging finance is expected to peak at £800m by the end of the year – an all time high for the sector, research from West one Loans predicts. net lending to the end of
august was up 53% since the start of 2010 with the volume of loans increasing 26% year- on-year. the West one quarterly Bridging Finance
index
shows how the bridging industry has expanded to fill the gap left by traditional high-street lenders since the start of the credit crunch. the average loan term was
just under eight months in 2010 meaning figures for net lending could be volatile as loans were constantly redeemed and granted. duncan Kreeger, chairman
of West one Loans, said: “the buy-to-let market is extremely
strong at the moment, with rents rising rapidly as tenants compete for homes.” to meet demand landlords
often need to refurbish and Kreeger added: “Bridging enables them to finance this development period. as a result, by the end of this year, we expect the market to top £800 million pounds for the first time.” But he added: “Having a
clear exit strategy is the most important
consideration
when taking out bridging finance. residential property has a wider range of refinancing options than commercial property. the latter is harder to value for bridging purposes and the market
is relatively
oversupplied at present, making rental voids more likely and therefore exit more difficult.” the average size of a loan expanded to £322,000 in
august, up 28% year on year as property investors tackled larger, more ambitious projects and took advantage of falling interest rates. the average interest rate on
a bridging loan declined to 1.35% per month in august, down from 1.54% a year ago. this reflects the general decline in market interest rates.
Loan to values were also trending upwards. in august, the average LtV, weighted by value, was 48.4%, up from 42.5% a year ago.
London Bus in Fight with High Street Banks
Kreeger: “Buy-to-let is strong at the moment”
Developer charged with £1 million mortgage fraud Savery and two other men,
By Staff Reporter
a 39-year-old Bath builder and property developer has been charged in connection with a £1 million mortgage fraud.
Shane davies was charged
with conspiracy to defraud last month following a long police investigation. the charge relates to dealings between January 2000 and december 2008 when davies allegedly conspired with Jamie Savery, 38, from trowbridge, and others to defraud mortgage lenders, the Bath chronicle reported.
Wayne dowding, 44, and Justin Quintin, 36, both from Bath, have also all been charged with conspiracy to defraud and were bailed to appear at Bristol magistrates’ court on november 14. davies, who now lives at new terrace in trowbridge, was remanded on bail to appear again on February 15. He appeared in court
wearing a navy blue suit and spoke only to confirm his name. the charges follow the
arrests of seven people in Bath in February as part of a probe by the operation
56 mortgage introducer NOVEMBER 2011
Zephyr regional crime squad, which was set up to tackle organised crime. the arrests were made
following dawn raids on homes across the city and a further four raids at Bath businesses, in which papers and other evidence were seized. the alleged offences relate
to mortgages on properties in the city, and the court heard the alleged fraud was in excess of £1 million. eight years ago, davies refurbished a Bath townhouse that was once home to isam- bard Kingdom Brunel, creating a £1m property.
Precise mortgages is taking to the road in a double- decker 1966 routemaster London bus in order to meet brokers and give presentations on how they can increase their business. a recent Yougov survey commissioned by Precise mortgages suggested the intermediary market is losing mortgage market share to the high street. in response, Precise mortgages will travel from Scotland to London from 21st to 29th november, stopping at key locations where brokers can climb aboard and hear from managing director alan cleary and sales director roger morris on how to fight back against the high street and protect their income. Precise mortgages has branded the outside of its bus with a consumer campaign aimed at the general public to encourage prospective customers to visit a mortgage broker rather than going to a High Street Bank. alan cleary, managing director of Precise mortgages, said: “We are 100% dedicated to the intermediary market and are serious about helping brokers to fight back. as the high street banks increase their marketing budgets the size of the intermediary mortgage market will decrease, now is the time to step up and show the banks that we mean business.”
Alan Cleary: Taking on the banks
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