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CFI: Bridging


Rumour and speculation


Award winning Commercial Mortgages.


by


Martin Kearns, head of strategic policy, Tiuta


We are barely into the new year and the rumour and speculation surrounding po- tential new lender entrants into the short-term sector has already begun. This time however the source of the speculation has come from the Association of Short Term Lenders and this perhaps gives it more credibility given that one would expect an industry trade body to be aware of those who were looking to make their move. ASTL chief executive,


Adrian Bloomfield, was quoted on the Mortgage Introducer website as saying that three ‘major financial institutions’


are currently visit www.aldermore.co.uk/intermediaries expertise. applied commercial mortgages


FOR INTERMEDIARY USE ONLY - Aldermore Bank PLC is authorised and regulated by the Financial Services Authority for deposit taking and regulated mortgages. Registered Office: 1st Floor, Block B, Western House, Lynch Wood, Peterborough PE2 6FZ. Registered in England no. 947662


44 MORTGAGE INTRODUCER FEBRUARY 2012 ACM10-0112-200013


weighing up their market en- try. These are apparently ‘se- rious players with huge sums of money to lend’ and ‘well recognised’ names. Now, there is no doubting that a number of institutions will be giving covetous glances towards the short- term sector at present, espe- cially when you compare it with mainstream lending and the margin (or other- wise) that is available there. However, we would be sur- prised to see a significant number of new institutions setting up their own short- term lending operations and


then having to market these new launches effectively and, one would assume, also having to deliver


a


highly competitive product range in order to make a splash. Certainly, we have ongoing


conversations with a large number of banks and insti- tutions and, while they rec- ognise the strength of the bridging loan and short-term sector, there is also an accep- tance that you need special- ist expertise and a history of proven performance in order to make the most of the opportunities. This is why we doubt very


much whether some of the bigger institutions that have been touted as ‘entering’ the sector will do so with a spe- cific in-house proposition. Our understanding from our ongoing relationships is that these types of institutions are more likely to want to provide funding lines to ready-made lenders like Tiu- ta, rather than be the actual front-facing operator. Indeed, I suspect that this type of funding arrangement will become a much more visible part of the ongoing bridging loan/short-term landscape as we motor into 2012. Talk to the brokers and introducers who operate in this sector and they will of- ten tell you there are but a handful of lenders who are worthy of the business at present, despite the fact that a growing number are pur- ported to be ‘active’.


www.mortgageintroducer.com


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