As bridging demand increases, Bridging Finance Solutions continues to commit to the lower value market, offering bridging loans from £25,000.
This move remains in stark contrast to many bridging providers, who stipulate a minimum £100,000 value loan whilst others start at £200,000. Identical levels of due diligence, time, effort and work is needed to arrange a £25,000 loan as a £250,000 loan, therefore many providers simply don’t feel that it is worth considering the lower end of the market.
Steve Barber, Managing Director of Bridging Finance Solutions said: “Whilst many bridging companies simply don’t have an appetite for lower value loans, we remain committed to this market. We believe it’s very much about the internal processes that are established within a business and therefore how straightforward an agreement can be put in place. We’ve invested heavily in IT systems ensuring or processes are effective, robust and streamlined making our approach to bridging incredibly straight forward.”
Steve added: “The North South divide does play a role in our attitude and outlook. As a north west based business, a large number of our clients are Northern based where property prices are significantly less expensive than the South. Necessary thresholds of lending, therefore are naturally lower, however, rental yields following refurbishments are strong, therefore the prospect of the loan for us is positive.”
Steve concluded: “We essentially underwrite backwards from the point of exiting our short term loan onto long term funding or sale of the property within 12 months, and this forms part of our approach to responsible lending. For us it makes perfect business sense, at the lower end of the market double digit yields are realised, which will often satisfy affordability requirements for ‘buy to let’ mortgages.”