<
p>Lender, Bridging Finance Solutions, has lowered its minimum bridging loan to £25,000, in order to commit to the lower value market.
While many lenders may not feel it is worth the time to arrange a loan as low as £25,000, considering it takes the same amount of time to process as a loan ten times its value, Bridging Finance Solutions believe its latest enhancement will be a stark contrast to other players in the bridging market.
Steve Barber, Managing Director of Bridging Finance Solutions believes that this step will show the market how committed it is to providing for the lower value market.
“Whilst many bridging companies simply don’t have an appetite for lower value loans, we remain committed to this market,” Steve added.
“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 also commented that as the firm is based in the North West, many of its clients are Northern-based, where prices for properties are much less than in 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,” he added.
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.”
Bridging Finance Solutions, has lowered its minimum bridging loan to £25,000 in order to commit to the lower value market….
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