Bridgers "overpromising and underdelivering"
Bridging lender Montello has accused some bridging lenders of "overpromising and undelivering" after completing a deal for a borrower let down by another lender.
London based bridging financier Montello recently completed a transaction for a borrower that was let down by one of the other "leading" bridging finance companies in the market.
The loan for over £700,000 was advanced over a property in London's prime area of South Kensington at a 60% LTV and at an interest rate below 1% per month.
Montello completed the transaction in days after the previous bridging lender had been working on the transaction for three weeks and had stalled in legals.
The borrower was initially directed to the other bridging company by a packager that "had a special relationship with that lender", claimed Montello.
Christian Faes, managing director of Montello, said: "This is a classic situation we are seeing at the moment, and this is certainly not an isolated incident.
"Many bridging finance companies in the market are simply over-promising and under-delivering. The transaction we have just completed in South Kensington was very straightforward. There was no reason for the borrower to wait three weeks for the bridging lender to do the deal.
"At Montello we are backed by very flexible capital, and in-house legal and property expertise, and this allows us to make decisions, move quickly and complete deals quicker than any of our competitors."
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