Best Mortgage Buyer launches programme to buy loans from bridging lenders

Best Mortgage Buyer (BMB) has announced that it will be acquiring mortgage notes from UK bridging lenders that may need a “lifeline” to continue to operate throughout the pandemic.

The business is seeking to purchase non-performing/delinquent and performing mortgages, as well as mortgage/bridging loans in litigation and single or whole mortgage books/portfolios from lenders.

It will also consider bridging loans from finance providers that are looking to exit the market, and has a total appetite to initially purchase up to £10m of secured debt.

"The sale/syndication of sub-prime, low-value and small-number mortgage notes is not generally a market that is well served or represented in the UK — certainly not as in other developed economies, with the US perhaps being the epitome example,” said BMB directors, Gary Hall and Charles Oates.

“The lack of such an open, easily available market for these types of mortgage note securities in the UK is perhaps a much-needed missing facility.

“[It] would be useful, particularly with the recent rise of many new and first-time lenders to the UK bridging sector.”

They claimed that, as a result of the health crisis, some bridging lenders have had to temporarily or permanently pull out of the market.

“There will be smaller, boutique bridging lenders that may be experiencing cashflow problems due to impaired redemptions as a result of the Covid-19 fallout, and the sale or part sale of some of their bridging loans may give them the lifeline they need to continue to operate,” they added.

“Many of these loans may have been originated before the word ‘Covid’ was even known, with repayment due before or during the pandemic.”

BMB claims it can structure transactions creatively and can conclude deals at speed.

The management behind the company have a history in property and finance, and has been lending in the bridging industry over the past few years.

Interested parties can email [email protected].  

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