B&C: What exactly is involved in your new role as Head of Short Term Lending?
RL: The key component to my job is ensuring what we lend on makes sense to Precise and is the right deal for us. The team has the delegated responsibility to ensure all the correct checks are done before I give the case my final sign off. We have the most sophisticated underwriting team in the industry, and our ability to check a case out I think is second to none. There is so much fraud around which is unfortunately growing; our various teams, their skill base and years of experience in their specific field is second to none. The quality and consistency of our underwriting decisions are key and our responsibility is to ensure that the brokers and packagers who send us business feel supported and always know we are looking to lend.
Do you find that your previous underwriting experience is invaluable in your new role?
All your experiences in life lead you to where you are now. Every person you meet, every case you underwrite and every job you do gives you not only underwriting experience but it gives you a great understanding that only comes with age. What is often missed by my peers is the ability to have a sales view and be able to communicate with the principals of the key firms who use us. Gaining my grounding with the Manchester Building Society taught me many things, but when I moved on to GMAC I was able to be at a senior position when the market exploded. It also enabled me to understand all the problems that a boom market presents. I was then involved in setting up Pricapita at the end of the boom which meant managing a lender with the issues of a contracting market and all the problems that had to offer. So when I got the chance to come and be a part of the team that was to set up the bridging function for Precise Mortgages, I knew I had the skill sets to really make it work.
Did you feel like a career in property finance was always on the cards, or did you set out following a different path?
I don’t think anyone really knows at 17 or 18 what exactly they will do with their lives. Often the course you choose at university doesn’t reflect your end career. My degree was in Statistics and Geography, but I didn’t fancy being a Maths or Geography teacher as corduroy doesn’t look good on me. However, I’ve always taken a keen interest in property, lending and the dynamics of this industry, with the development of numerous properties since my early 20s. I knew instinctively that I had the right mentality to make a career in this sector.
What has been the highlight of your career to date?
It has to be starting at Precise Mortgages as Head of Short Term Lending. The passion, imagination and vision of Alan [Cleary], Ian [Lonergan] and Chris [Preston] is just inspirational. The personal support and mentoring I get on a daily basis is superb and I love the job – I wouldn’t endure a 160 mile roundtrip daily if I didn’t. I have the ability to change what we do, what we lend on, and the ability to steer the direction of our bridging proposition. The responsibility entrusted in me is what drives me to be better and better at what I do and develop my fellow team members to be the best in the industry.
What aspect of Precise’s short term lending proposition excites you most?
Assisting investors in the residential BTL sector to make money in this explosive market. The BTL market has grown by 44 per cent in the last two years, whereas the residential has only grown by 6 per cent. There are so many houses out there that are unmortgageable due to the very restrictive lending criteria. The STL Team here at Precise can provide real solutions and assist customers to buy and renovate these properties, to ultimately increase their investment portfolio. The BTL market will only keep on growing and what we are doing at Precise is evolving every single day too.
Are there any particular areas you have targeted for expansion in the coming months?
Our business is growing every day; we are the only lender to do grass roots workshops on education and development in the broker market and we are campaigning to change the industry to ensure that the end customer always knows what they are signing up for. The work Alan has done on this for me is key to ensure this part of the sector is not only fit and proper but grows safely and correctly.
Are the packagers on Precise’s Premier Panel crucial to your success? Will we see many more exclusive or specialist products being made available through them?
We understand packagers more than any other lender; I have spent most of my working life working with packagers so I understand them. This is also true of the whole team here at Precise, working with packagers is in our blood. We will constantly help them evolve, develop and become true partners with them. We realised from day one the symbiotic nature of the relationship, their ability to deliver and how we could assist them to grow - that in turn would grow our business. We spend a lot of time and money ensuring that this happens. Our product range and innovative approach will see more and more products come to the market through this very valuable channel.
What challenges do you think will come to define the short term lending landscape in the coming year?
I think MMR will have massive consequences. The networks are really worried about its implications and I know that Alan has had many recent emails and calls about these changes and their implications. A lot of networks are now closing the panel for which lenders their ARs can use regardless if the deal is regulated or non-regulated. Our industry needs to evolve and embrace the inevitable onset of regulation.
How do you feel the short term industry is currently perceived? Are there any immediate concerns you have about the sector that Precise might address?
Ask most brokers why don’t they use bridging and often the reply will be, it’s just too expensive. For too many years the industry has exploited the market and the end customer with hidden charges, extortionate fees, two sets of legal costs and huge penalties for not redeeming. The FSA has issued some strong warnings to the lenders who are regulated that don’t calculate interest by MCOB rules, charge lender fees on retained interest and don’t operate the same principles to non-regulated activities they also do. At Precise, we have been banging the drum for the industry as a whole to treat customers fairly, and be transparent in respect of charges and interest costs, whether the deal is regulated or not.
What are your bridging predictions for the rest of 2013?
The market will continue to evolve and grow with new entrants, and hopefully there will be no further bridging companies closing. We need a strong, healthy and competitive bridging sector, that will ultimately be beneficial to the end consumer.
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