Blemain Group Warns Brokers to Choose Bridging Finance Partners Carefully

Brokers are warned to check the stability of business partners before entering in to a short or long term business relationship with Bridging Finance lenders.

Brokers have expressed concerns over the announcements of bridging lenders Mathon Finance and Excel Securities, going into administration, joining Link-bridging who had to cease trading a few months ago. These concerns are expected as brokers have already witnessed a traumatic demise of secured loan and mortgage lenders in the recent years. Their concerns focus on the stability of lenders, particularly new entrants and those lenders who have been over ambitious with their products and LTVs. Brokers are now seeking reassurances, for both themselves and their clients that the lenders are stable, can honour the deal that is on offer and that the products have taken into account an achievable and realistic exit route.

Over the past few years there have been several lenders who have found themselves exposed by over aggressive products that led to an exit route being almost impossible to find. This leaves the broker in a difficult situation as they have obviously advised their client that bridging finance is a suitable option.

Lenders and Brokers providing bridging finance need to learn from the past and ensure that the market is sustainable. The exit route is the vital component of bridging finance not simply the initial product offering such as a low rate, high loan to value or the promise of a speedy completion. Without the exit route being firmly established the customer and lender is likely to run into severe difficulties when the term of the loan expires.

Equally as important to the exit route is the stability and experience of the lender in dealing with bridging finance. A lenders experience to make a decision is essential in the transaction to protect all concerned. By drawing on the lenders experience to consider the overall deal including the client's circumstances, the property type, and the exit strategy carefully, a responsible and well measured bridging finance decision will be made to fulfil the client's longer term aspirations.

At this moment the Bridging finance market is the most competitive it has ever been. Competition is a positive thing, and healthy for everyone concerned, with lower rates, higher loan to values and product innovation being more prevalent than ever before. However; this leaves the broker contemplating which lender to use and how to satisfy themselves the lender is stable, with products on offer that are appropriate.

Speaking on behalf of Blemain Group, Director, Gary Bailey, said:


Brokers are invited to visit www.brokervenue.co.uk where they can register and access the latest Blemain Group plans and documents. Alternatively, they can also call 0844 873 4100 and speak directly to a Business Development Executive.