The making of a 'Super Bridger'

The making of a 'Super Bridger'




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Following weeks of unconfirmed rumours regarding Precise Mortgages’ entry into the short term lending arena, yesterday saw the official launch of what looks set to be the next ‘super bridger’.

The sheer size of the company’s funding line, as well as its low rates, its flexible approach to lending, and its well-known brand name, are all supporting this overall consensus.
Terry Markham, Director of The Funding Operation, said: “The entrance of Precise into the short term lending market is a very positive step for all intermediaries.
“When forward thinking lenders enter an arena it can shake up the whole market and sometimes force those that are sitting on their laurels to re-evaluate their offerings, often to the benefit of the intermediary and ultimately the customer.
“I think there is always scope for a new lender in this market as long as their offerings are innovative.”
However, as Alan Cleary, Managing Director of Precise Mortgages, explains, creating the competitive products which we saw unveiled yesterday was by no means a straightforward task...
 
B&C: How long have your team been working on your latest short-term lending (STL) products?
Alan: Overall, we have been investigating the market for about six months; this included a lot of conversations with intermediaries to establish what products would sell.
B&C: That seems like an arduous task. With so much competition out there already, what made you decide to enter into the STL arena in the first place?
Alan: We were looking at several adjacent markets that would allow us to leverage our skills base and the short term lending sector came up as the best fit.  We are very experienced at lending money and have a reputation for providing a First Class service.  In addition we have access to substantial funding lines and the STL market looks like it is under-supplied so I believe we can add value to both customers and intermediaries.  Finally, we are good at credit risk management and STL represents a good risk adjusted return for our business.
B&C: So what is it that makes Precise stand out from all the other STLs in this industry?
Alan: I believe there are some very credible lenders in the STL space, so I had to think long and hard about why a broker would want to use Precise Mortgages.  Here is what Precise Mortgages stands for:
1.   We will provide a First Class service to our intermediaries and to their customers
2.   We will have market leading interest rates
3.   We will have market leading product criteria
4.   We will pay market leading procuration fees
5.   We will have standout marketing – hence the big splash on the Bridging and Commercial website
6.   Finally, we know intermediaries have a choice, we appreciate every piece of business and every relationship
 
B&C: And are you planning to integrate Precise’s mortgage products with the STL products in the future?
Alan: I think we will constantly be evolving our proposition and where it makes sense we may look to link products.  As an example, just three hours after launch of the STL products we were working on Phase Two.  Watch this space.
 
Less than 24 hours since the official launch, Precise have already received huge volumes of calls.
“The phone has been off the hook, we have had our busiest day on record and the feedback has been very encouraging,” said Alan.
Yet whilst intermediaries are welcoming the addition of the latest STL with open arms, most are reserving their judgement on the long term prosperity of the bridger until ‘phase two’ is integrated.
Lucy Barrett, Director at Vantage Finance, said: “We have seen a vast number of entrants into the bridging space recently, and it has become a very competitive market.  The rates released by Precise today are some of the lowest out there so I am confident they will do well, but in order to grow the market rather than see business shift from one lender to the next, we need to see something new and interesting in terms of product and criteria, not just pricing, because the market is currently very saturated.”
As saturated though as this market may appear, it has been quite some time since a lender of Precise’s scope emerged. We will, indeed, be watching this space.
By Katie-Jill Rowland

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