have been different. nowadays, for example, a very small percentage of bridging borrowers are credit impaired. “That’s different from where we
were in years gone by when we may have specialised in customers who might have had financial difficulties in the past,” explains Bailey. “now it’s very much more status lending. With banks’ lending that much more heavily
driven by credit scoring we have an opportunity to pick up good customers dropping out of the bank market because of that.”
AND STAY THE SAME
But there are things that haven’t changed about Blemain Group. risk has always been a critical consideration and typically the lender hasn’t gone above 75% loan to value in 40 years.
Affordability assessments have also been something Blemain Group insisted on even pre- credit crunch, applying due consideration to the customer’s circumstances and that their aims are likely to be met, as well as a plausible exit for the bridge. “If you’ve got those four things firmly in place you can have confidence in your lending decision. The demographic of our customers might have changed over the past 40 years but that core of experience in relation to those three things is still there and hasn’t changed. Whatever market you’re in that’s the same: they are the basic fundamentals of underwriting.”
DRIVING FORCES Bailey says the interesting development for the market has been more focused on the purpose of bridging loans – nowadays they’re seeing more
“nowadays a very small percentage of bridging borrowers are credit impaired. “That’s different from where we were in years gone by when we may have specialised in customers who might have had financial difficulties in the past”
www.mortgageintroducer.com BrIDGInG InTrODucer MAY 2012 29
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