Paul Norris, Managing Director at Gordons Property Lawyers
I’m misquoting slightly when I say ‘Uncertainty is the mother of all invention’, but a fresh approach to lending is certainly something that’s required in these uncertain times.
Despite all of the uncertainty, there is one good thing that’s come about recently – invention and innovation in the lending market, spearheaded by specialist lenders such as Precise Mortgages. Over the last year, we’ve seen specialist lenders being really creative with their products and criteria, and the ways they are going about educating the market.
With specialist lenders working so hard to design products that meet customers’ changing needs, borrowers are increasingly looking to them for a solution, especially if they’re after alternative forms of finance. This has all contributed to a rise in brokers looking to Bridging Finance as a viable option for their customers, with £766.9m of loans being completed in 2018 – a significant increase of £232.8m on 20171.
At Gordons Property Lawyers, we can attest to the growth in the Bridging Finance sector, with our specialist lending team seeing a 98% growth since 2016. This tremendous growth is in part due to our mortgage broker partners favouring this type of specialist finance over a traditional finance option.
Bridging Finance is fast, with the average case completing in 45 days2. Here at Gordons Property Lawyers, our average is just 39 working days, a completion time which we hope to make even faster with the introduction of direct dials to our case handlers for mortgage brokers and their clients. Bridging Finance is also becoming a lot more affordable for customers, with average interest rates falling in 2018. No longer is it the overly expensive and time-consuming option it was once portrayed to be.
Not only has Precise Mortgages introduced its lowest ever Bridging Finance rate, it’s also launched Refurbishment Buy to Let. This gives customers the best of both worlds – the short-term flexibility of Bridging Finance to carry out any refurbishment work, with the security of an exit on to a long-term Buy to Let Mortgage once the work has been completed.
This is exactly the kind of creative thinking a lot of our clients are looking for. As supporters of product innovation, Gordons Property Lawyers will only be charging one conveyancing fee – saving customers around 35% in conveyancing fees for each Refurbishment Buy to Let application. It’s a great example of how lenders and lawyers can work together to reduce the cost of borrowing and speed up applications.
To find out more about Refurbishment Buy to Let, contact Precise Mortgages, and to find out how Gordons Property Lawyers could save your customers money, visit www.gplawyers.co.uk or call us on 01628 308380.
Source: 1 https://www.bridgingandcommercial.co.uk/article-desc-14529_bridging-market-overview-for-2019