Explore the world of bridging this year
With the sector expected to grow, Alan Cleary, managing director of Precise Mortgages, says brokers and lenders should position themselves to take advantage of it
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t’s been just over a year since we decided we were going to enter the bridging market. The decision was
underpinned by a significant amount of research that led us to believe the sector offered good growth prospects and excel- lent credit risk opportunities. Indeed that belief has been further
strengthened by our experience since launch – namely high street banks’ con- tinued funding and lending difficulties coupled with growth in the private rental sector. Those of you who work with us will
know that we are not ones to stand still and are continually evolving and inno- vating our products and services to meet the needs of our intermediaries. We have a reputation for delivering
excellent service and any teething prob- lems we had at the outset are largely behind us. My quest for market-leading products and service will continue until we get brokers saying our service and products are second to none.
Innovative products and services are key
One service improvement we have imple- mented is a joint solicitor representation on our legal process. This means that instead of the borrower having to appoint their own solicitor they can use the same solicitor as we do for our own
The
legal work. Broadly speaking, this will halve the time the legal process takes and the cost for borrowers. Of course we do not take away the customer’s choice – if they want to use separate representation they can, but we believe brokers and customers are going to like this move. In addition, we have launched second
charge bridging loans which is some- thing intermediaries have been asking us to do.
And this, together with our recent
launch of regulated bridging products, should make us an attractive option for those who want to use a lender with a broad range of products under one roof.
Transparency is the only way forward We have always been aggressive on price and giving customers good value prod- ucts is still a top priority. A little-known fact is that our pricing relative to our competitors is better than it first looks. This is because not all bridging lenders calculate interest in the same way. For those deals where interest is re - tained we charge it on the retained por- tion only when it is released. This con trasts with the market norm, where the lender charges interest on the entire retained portion upfront. This means Precise Mortgages does
not charge interest on monies it hasn’t actually lent yet.
guide to Bridging Finance 2012 9
GUIDE TO BRIDGING FINANCE
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