(From top left to bottom right) Gareth Lewis, head of sales at Precise Mortgages; Malcolm Scanlon, head of lending at Niche Financial Solutions; Steven Nicholas, chief executive officer at Tiuta; Martin Gilsenan, sales director at Omni Capital; Carl Graham, business development manager at Bridgebank Capital; Mel Fordham, managing director at Centrado; Gary Bailey, group director at Blemain Group;
on back books rather than what the industry is doing now?
Gary Bailey: it’s more of a concern that people who are being put into bridging are people that shouldn’t be put on to bridges or are put into an unregulated bridge where it should be a regulated bridge. the eu directive has put a bit of a swerve on it because a lot of bridging we do is on buy-to-let, residential investment properties. that’s probably where the FSA is looking as they’re unsure about what they’re going to be regulating in the future. they probably would like to understand it more than they do.
So there’s not an issue with vulnerable customers like there were in the past?
CG: We’ve mentioned it before in terms of who we lend to now. We’re not non-status equity based
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lenders anymore. We’ll underwrite the applicant and the security for an overall profile and make sure the exit is secure.
With all of the interest-only changes on the high street, there are a lot of people who will no longer be able to remortgage and will be stuck. Is there a fear brokers will start using secured loans and potentially short-term finance to tide people over?
SN: no. We all underwrite to exit. because we underwrite to exit we want to underwrite not only the property but the client as well. if the deal is at a low LtV but the
client can’t secure a mortgage at the end of the term, then certainly we wouldn’t lend to them. Malcolm Scanlon: i come across a number of enquiries where a client has been led into a bridge with the promise of a refinance and you know full well that was something that was not feasibly possible. GL: i think the people around this table can’t scrutinise what people who hide in the dark do. they are going to try and get business from wherever they see fit, we can’t tell them what to do. What we need to make sure is that maybe the scrutiny should go back to the advisers.
bridging intrOducer MAY 2012 23
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