Scunthorpe-based Holme Finance Bridging Solutions (HFBS), a sister company of Blue Sky Mortgages, has been trading for nearly fifteen years, but with more funding now available to them they are looking to go out to the broader market.

Different from most of the other players in the bridging finance sector, the firm specialises in smaller bridging loans, and accepts second charge deals, as well as clients with adverse credit histories. 

Their minimum loan size is £5,000, with the maximum being £40,000 - although slightly larger loans can be considered on an individual basis. These loans can be secured by a first, second or occasionally third charge on most legal titles, however FSA-regulated contracts cannot be considered.   

Lead underwriter Ian Broadbent explained: “In view of the current climate most bridging lenders are looking for first charge business. For larger advances this is often the best solution, however many clients are looking to raise relatively small sums.

“Refinancing an existing first charge at bridging rates is often very expensive and unlikely to constitute best advice for these clients. In these cases a second charge can be the solution.”

As the lender specialises in second charge bridging loans, LTVs are conservative, standing at 60% of open market value. There is a flat arrangement fee of £595, and “no need for clients to have their own solicitor” in most cases, according to Mr Broadbent, as the transactions are often small and straight forward.

He added: “This product is clearly not for everyone; however I believe it can be a valuable option both for placing business and meeting the increased demand for treating customers fairly.”