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div>Following yesterday’s announcement, B&C quizzed industry figures to gauge market reaction to Aldermore’s entrance into bridging.
Yesterday, B&C broke the news that Aldermore Bank had launched its short term finance offering.
Following yesterday's announcement, B&C quizzed industry figures to gauge market reaction to Aldermore's entrance into bridging.
In reaction to the news, Richard Deacon of Masthaven Bridging Finance said: “It is fantastic news that Aldermore is entering the bridging industry.
“Aldermore is a well-established and respected name in the commercial sector and their entry into the bridging market can only be good news for the industry.”
“Aldermore is a well-established and respected name in the commercial sector and their entry into the bridging market can only be good news for the industry.”
James Bloom from Regentsmead said: “Aldermore’s launch into bridging provides a new dimension into the bridging market, another bank providing bridging is certainly a sign of an improving market where different organisations are seeing ways to release capital into an accelerating property market.
He also commended Finance 4 Business’ (F4B) achievement of being selected as the distribution channel for the bank’s products.
“It is a coup for F4B that they are the exclusive provider and this will only strengthen their position as a leading packager. An interesting development and a sure fire sign that we are in a period of growth which can only be good for the other providers albeit competition is increasing.
Russell Martin of Finance 4 Business (F4B) said: “It is very exciting to have a trusted brand such as Aldermore enter the Short-Term Finance sector. The initial product offering is very strong and covers most bases and the development of the Bridge-to-Term product across residential, semi-commercial and commercial is a unique proposition, particularly given the geographical spread of Aldermore’s lending.
“From a personal point of view, I am absolutely delighted that Aldermore approached Finance 4 Business to exclusively package the cases for them. A lot of hard work has gone into the research and development of the proposition prior to release and I very much look forward to working with the excellent staff at Aldermore.
“If the first day is anything to go by, we’re going to need to order some new phones!”
Mark Posniak, Head of Sales and Marketing, Dragonfly Property Finance, commented: “It’s encouraging to see lenders like Aldermore enter the short-term finance space and, as a specialist in both commercial and residential bridges ourselves, we wish them luck.
“Both markets have their challenges: residential, a huge amount of competition, and commercial, a high barrier to entry given the skillsets and experience required.
“When we launched in 2009, we were considered a contrarian play. Now short-term finance is very much a momentum play.”
The bank’s launch into bridging was hotly anticipated by the industry, with rumours first hitting the press at the end of last year.
Kit Thompson, Head of Bridging at Brightstar Financial said at the time: “If Aldermore is unable to compete on price with the likes of united Trust Bank and Precise then it will have to offer something a bit more niche.
“I’d like to see a lender come into the space and a bit more done on the development side of things. What I wouldn’t want to see is another lender only offering loans on prime central London properties.”
The bank’s new products include fixed rates on residential investment bridging loans starting from 0.75 per cent with maximum loan sizes of £3 million. Up to 75 per cent LTV is available.
“I’d like to see a lender come into the space and a bit more done on the development side of things. What I wouldn’t want to see is another lender only offering loans on prime central London properties.”
The bank’s new products include fixed rates on residential investment bridging loans starting from 0.75 per cent with maximum loan sizes of £3 million. Up to 75 per cent LTV is available.
Commercial bridging loans start at 1.3 per cent, with lending amounts reaching up to £5 million and a maximum of 65 per cent LTV.
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