Bridging firm completes record number of FSA regulated mortgages

Bridging firm completes record number of FSA regulated mortgages



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Short term specialist lender Cheval has announced that for the first time in its history a majority of loans completed in the quarter ending September 2009 were FSA-regulated mortgages.

Cheval CEO Alan Margolis commented: “The figures show that short term bridging finance is now being predominantly used for what we call the ‘Classic Bridge’ where we are bridging the time gap between the purchase of a new residential property and the sale of the customer’s existing home.

The lender has said that the rise of the traditional bridge is down to the current shortage of good quality, residential property and the increased competition among buyers.

Mr Margolis added: “Previously, a majority of bridging loans were used to assist in the acquisition or refinance of investment buy to let properties, and of course there were many more commercial property transactions being undertaken. Both these are much quieter at the moment hence the resurgence of traditional bridging lending. Astutely used bridging loans allow borrowers to quickly secure their target property.”

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