time

When time really is of the essence



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The old adage “time is of the essence” has always held a prominent and somewhat terrifying position in the world of property transactions.

The phrase has often been responsible for huge successes and failures, depending on what side of the transaction one sits.

It may even be said that the birth and rapid growth of the bridging loan market may indeed be largely attributable to this phrase. Why? Banks are rarely fast enough in releasing funds when they are really needed by the borrower, and often won’t go the extra mile (or hours) to ensure the client comes first.

So, what’s the point?

The bridging loan market has seen exponential growth over the last few years almost reminiscent of the now distant buy-to-let boom.

P2P funding platforms allowing borrowers direct access to funds from the general public, consolidation in the industry as well as banks and hedge funds seeking new revenue streams entering the market has resulted in the volume of cash chasing returns to continue to outpace the growth in the demand for loans, which in turn has caused bridging rates to almost halve since the financial crisis.

Some of the biggest players in the industry have been busy applying for banking and/or deposit-taking licences to reduce their funding costs in order to remain competitive – this may spell trouble for clients where time is really of the essence.

Under the guise of the traditional quick-fire bridging loan provider, many bridgers are in fact operating as quasi-banks, given their growth in size, or have become plagued with the bureaucracy required to be a bank, while they seek the holy grail of a banking licence. Those who have chosen wisely and decided to avoid the latter route in their hunt for cheaper funding have got themselves caught up with funding restrictions as a result of being owned or funded by a bank.

All of this is leading to significantly slower loan completion times to the detriment and frustration of brokers and their clients, who don’t get the funds they need when they really need them – even though they thought they had gone to a quick bridging loan provider and not a ‘bank’ in the first place.

We at Bridging Funding can confidently say that we have worked hard to avoid following the crowd in this new era of lending and have found our own niche in the market that allows us to provide the competitive low rates offered by the bigger, sluggish lenders, while operating under the traditional bridging provider mentality of quick turnarounds and a streamlined process expected by mortgage brokers, so funds can be released on time, every time.

We have a group of property professionals who have over 100 years’ combined property market investment experience between them who, we believe, are best placed to understand and underwrite bridging loans with full authority as well as always being available to discuss every case personally with you.

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