EXCLUSIVE: Bridging brokers want lower rates

Robyn Hall

January 4, 2013

Of those surveyed, 62% said they wanted lower rates while 46% said they wanted access to more products with higher loan to values.

Julian Ingall, director of Coreco Specialist Finance, said: “The bridging market is still very hesitant on the LTV aspect and typically 70-75% is the maximum LTV offered by bridging lenders even on prime residential securities.

“However most lending is on a gross basis which distorts the LTV position further.”

When asked if bridging lenders were transparent enough about the fees and charges included in a deal 45% said they were not.

Ingall shared this sentiment and said the lack of transparency made product comparison “quite tricky”.

He said: “This is one of my personal bug bears. The rate chasing troop often miss the small administration fees that the bridgers have a nasty habit of slipping in coupled with the retained interest interest on interest for most of the market.”

And he added: “It is still only lenders such as UTB and Precise that show a true transparent approach.”


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