Lenders and packagers vie to produce cheapest bridging deal

Lenders and packagers vie to produce cheapest bridging deal



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This week has seen a number of announcements from specialist distributors and lenders regarding the cheapest bridging rate.


Bournemouth-based specialist packager Positive Lending can now offer a rate of 0.75 per cent per month via Precise Mortgages, available at up to 75 per cent LTV. Introducers further benefit from a 1.5 per cent procuration fee if they go through Positive Lending, which is 0.5 per cent higher than applying direct.


Positive’s Managing Director, Chris Fairfax, said: “Fierce competition within the prime bridging market is driving down monthly interest charges. Introducers can now obtain unprecedented low rates for clients and earn referral fees of up to 2 per cent per case.”


Positive can also fund purchases up to 65 per cent LTV at 0.7 per cent via another lender.


Alan Cleary, Managing Director of Precise Mortgages, commented: “We continue to support the bridging market and work closely with members of our premier panel to help them source and package suitable business. It’s reassuring to see Positive Lending supporting the market too; their introducer fee is very generous.”


This latest announcement comes hot on the heels of the news that distributor Brightstar Financial is now able to provide bridging finance at 0.75 per cent per month for loans up to a maximum of 70 per cent LTV, with interest charged daily, via lender Saffron Building Society.


Kit Thompson, Brightstar’s Head of Bridging and Commercial Sales, said: “As a bridging specialist, Brightstar is able to offer fantastically competitive bridging finance directly to its intermediary introducers, with Saffron providing the funding line. 


“Brightstar, as an expert in the bridging market, is able to do what we do best which is to market the funds in the knowledge that we have a secure funding facility to draw on. Brokers and their clients are not only going to benefit from the market leading rates but also the joint expertise of Brightstar and Saffron working closely together.”

 

5 Comments

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    Chris

    With respect Rob, you seem to think that doing your first bridging loan ten years ago qualifies you as an expert. Sorry mate but many of us smaller guys on here have been carving out a professional living in this industry for twenty years. We all remember the packagers, and their "computer says no" approach. Firms like Britestar simply force down the rate based upon volume. The industry WILL suffer as a result of this.

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    Simon Allen

    Rates at 1% are there for a reason to cover expenses,bad debts and make a reasonable return. When they reduce and higher proc fees are paid out there is less in the pot to cover the above. It's all well and good saying how many term letters are issued but I've yet to hear a lander say what actually gets paid out. There are too many lenders for the deals out there and it will be survival of the fittest. Not sure about the tears yet but maybe the hanky needs to be ironed and ready.

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    Rob Jupp - Brightstar Financial

    Not sure why this will end in tears and resent comment that we could be described as 'experts over night.' I did my first bridging loan in 2001! We have worked with a provisional building society to bring £15m of additional bridging funding at some of the lowest rates around. This is new money and not 're-hashed' funds for a easy PR win. Competition gives clients choice which means deals get done and income can be earned.

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    Simon Perkins

    Well said Phil. The only way that the big Bridgers can ultimately increase their market share is through a combination of lower pricing and relaxing the lending criteria. The problem is in meeting the rising staff and office costs which go hand in glove with the tremendous volumes required to balance the books. Its a comfort to know that there will always be Investor Funded lenders run by entrepreneurs providing niche producs and services who have the instinct to know a sensible deal when they see it.

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    Phil

    Absolutely guaranteed to end in tears. Always the same when the packagers get involved in anything and become self proclaimed experts over night. You only have to look at what happened to Sub Prime. When the big boys in bridging have been and gone, and left us all in over regulated tatters, I only hope that there is something left for us small guys.

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