Contents
www.mortgageintroducer.com • March 2012
After an eventful 2011 with new entrants piling in, this year was always set to be busy but few could have predicted that quite so much would happen so fast.
Challenges were
made on the fairness and cost of separate legal representation and charging interest up front on rolled up interest. There was uproar behind closed doors after the As- sociation of Short Term Lenders revealed it had held discussions with three major new funders thinking about getting into bridg- ing – uproar because some existing lenders apparently didn’t want their trade body encouraging new entrants. West One Loans even published a slight- ly enigmatic story claiming 46% of brokers think new bridging lenders are “bad for the market”. The flipside of that is that more than half of brokers think they’re good. I’m inclined to agree. Competition is critical to building a sector that works for consumers. And the bridging brigade must bear that in mind if they are to escape more comprehensive regulation by the FSA. The other thing that builds confidence for consumers in an unregulated market
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is knowing that lenders must adhere to a code of practice set down by their trade body. The industry appears to be split on whether the ASTL is achieving this. Lowry Capital and Precise Mortgages both quit the trade body after failing to identify the value it offers. Perhaps no surprise then that Adrian Bloomfield, chief executive of ASTL, has resigned after four years at the organisation. Before leaving ASTL Bloomfield said it
was not the job of a trade body to tell its members how to run their businesses. On product design and commercial decisions perhaps not but on setting professional standards of behaviour and treatment of customers. Before mortgage regulation in 2004 mainstream lenders by and large adhered to standards set by the Council of Mortgage Lenders and its Mortgage Code. When the FSA stepped in to regulate that market the CML’s Mortgage Code formed the basis of much of MCOB rules we have now. The bridging sector is facing a future of regulation. It would do well not to miss its opportunity to influence its shape.
Sarah Davidson Editor
Bridging Introducer 4 News Review
6 Bridging In Depth The problem with lawyers
16 Industry Comments Expert views on the latest developments in bridging
20 Build a Better Bridge Your questions answered
22 Round-table The ASTL, AOBP and NACFB explain their roles
28 Cover Story Bridgebank explains its business
32 In My Opinion How Bridgebank ensures its lending is responsible
34 The Last Word The implications of the MMR for the short-term market
38 A Bridge Too Far Essential information and don’t forget our competition
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BRIDGING INTRODUCER MARCH 2012 3
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