Is there a shortage of £5-20m loans?

Brian believes there is a gap to be filled, particularly for loans for retail, industrial, residential and commercial investments, larger and more valuable homes, student accommodation, hotels or residential and commercial developments.

He felt that there were two reasons for the shortage of lenders.

“First, the absence of funding lines adequate to satisfy larger loans, and second, lenders’ need for in-house skills to effectively investigate such opportunities which need a totally different philosophy and skill set ranging from in-depth financial and property analysis to appropriate professional advice from solicitors and valuers.

“There is a growing number of lenders ready to advance up to £2m for any one transaction and then there are those who may get to £5m.

“However, most wish to keep it simple – residential, more residential and maybe retail with residential upper parts.”

Brian added that although larger loans could attract the interest of high street and challenger banks, past experience showed their standard procedures would not satisfy a borrower with a burning issue to resolve.

He added that it may be refinancing, a well-priced purchase, completion of an auction contract or just releasing funds for working capital, but if the loan is over £5m, the debate could be endless and you’d never know if or when the loan would happen.

“Larger loans are not tick-box transactions, but underwriting them need not be unreasonably delayed.

“Established bridging lenders with underwriting, credit committee and management under one roof, not distracted by other activities, need not suffer delay and should be able to review a new proposal and issue terms within the working day.

“We are all seeking to find new opportunities, the gap in the market.

“Simply, larger loans secured by a more diverse range of properties could be that gap.”