People’s need for reliable, transparent and quick access to funds is therefore as critical as ever, and specialist finance such as bridging loans will be there to take a personalised approach to solving client issues.
One of the biggest selling points of bridging finance is the flexibility the product can offer, compared to mainstream lending. At MTF we assess each loan request on a case-by-case basis, shying away from black and white criteria and a blanket, one size fits all, approach.
More specialised funding, however, is not necessarily an alternative to mainstream lending, but rather a complement to it.
All too often specialist finance like bridging loans is seen in isolation to mainstream finance.
Despite industry regulation brought into effect this year which sees products that were regulated by the Office of Fair Trading now brought under the Financial Conduct Authority’s remit, there is still a view that specialist products are for very specific situations and, often, a very specific type of customer.
But the fact is, they can be used in conjunction with more mainstream lending, to present solutions for any borrower.
Increasingly tight criteria in the mainstream market mean borrowers often struggle to achieve the amount needed to complete on a purchase. At first glance the outcome of this would be obvious; if the borrower can’t raise enough funds then the deal’s off.
However, with a little knowhow and creativity, the deal can still go ahead. A second charge bridging loan from MTF, for example, could be used to make up the shortfall behind a first charge mortgage, if a borrower wants to buy an investment asset but can’t raise the full amount from a bank. With consent from the first charge lender, both loans could even complete simultaneously.
Specialist finance can be used to solve a multitude of issues which, from a mainstream perspective, seem impossible.
Tomer Aboody is a founding directore of MTF. With over 20 years' experience in the property market, both in the UK and abroad, he brings first-hand understanding to the property finance sector. Tomer is the driving force behind MTF's asset-based lending approach and commonsense attitude to underwrting a bridging loan.