Glenhawk slashes regulated bridging rates

The changes apply to first- and second-charges across the lender’s regulated offering — apart from its 70% and 75% LTV options, which remain unchanged. 

The range now includes rates starting at: 

• 0.76% at 65% LTV (down from 0.91%)
• 0.74% at 60% LTV (previously 0.89%)
• 0.72% at 55% LTV (reduced from 0.88%)
• 0.69% at 50% LTV(down from 0.86%)

“Given the demand we are seeing in the regulated bridging market, it’s important that borrowers have a choice,” said Michael Clifford, commercial director at Glenhawk (pictured above).

Following the rate changes, he believes the demand for the lender’s regulated bridging products will continue in 2023, and he expects to see enquiries at or above the forecast levels.

“The market demand is already there, and we don’t see this materially changing just because one lender changes its pricing.

“However, we clearly have an appetite to help a greater proportion of the borrowers seeking finance in this part of the market. 

“We have in recent months introduced an AVM valuation process in regulated bridging and apply the same manual underwriting processes to regulated bridging as we do to unregulated, allowing us to use our underwriter experience to provide flexibility and commerciality in approving cases.”

Going forward, Michael said he anticipates the bridging market to continue to play an important role in property investment or development as a means of transitional finance. 

“The sharp increase in interest rates in Q4 2022, the ongoing need for new homes, the repositioning of existing assets and increasing regulation in the PRS all provide opportunity for bridging lenders to add value to the economy through 2023 and beyond,” he concluded.