The Intermediary – March 2025 - Flipbook - Page 23
SPECIALIST FINANCE
In focus
Why care about
hitting £10bn?
W
e see many
numbers
bandied
around in
this industry,
which can
have a numbing effect. So why should
we all, especially brokers, care that
bridging exceeded £10bn last year?
Because smashing £10bn signals a shi
– a sign of things to come.
As the events season gets underway,
brokers might want to rethink
sprinting past the bridging providers’
stands – we all know the bridging
dodgers – or consider expanding their
offerings. As bridging becomes a
mainstream financial tool, it’s worth
building new relationships. Dust off
the black book to determine what
clients might benefit from: service,
flexibility, rates, and criteria – plus the
all-important proc fee offerings.
Bridging providers are set to offer
more than a branded pen at this year’s
events. Expect some serious A-game
tactics to win over brokers, as the
competition is fierce.
A more competitive property market,
property investors driving demand,
chain challenges, and an evolution
in lenders have all contributed to
bridging exceeding £10bn in 2024.
If a client faces increased
competition to buy a property, the
speed achieved with bridging becomes
a strategic choice. In addition, the
demand for properties to refurb,
buy-to-let expansion, and auction
purchases is rising, compounding the
need for fast finance. Then, add the
painfully slow British property buying
system, tighter affordability, and
higher-than-previous rates to the mix,
and the recipe for £10bn is clear.
Finally, in the last decade, the
bridging industry has changed beyond
recognition to meet the needs of
brokers and their clients – a solution
waiting to solve all the above.
There are tremendous opportunities
for brokers: more commission
opportunities with deals closing faster
than traditional mortgages, a chance
to provide a service with a complete
offering, differentiating against other
RICHARD KEEN
is national sales manager at
Greenfield Bridging
brokers that don’t offer bridging,
and being able to offer regulated and
unregulated loans for homeowners or
professional developers.
Most borrowers aren’t familiar with
bridging, or still remember it from
the past, so explaining options to
clients is vital. It’s also essential to get
to know different bridging providers,
as they all offer different products,
beyond the rate. Get comfortable with
where bridging is right or wrong – for
instance, auctions, chain-breaks, or
property development with an exit
strategy within 12 months.
There is a huge opportunity for
brokers who explore bridging lenders’
products and services. Those who
build relationships and can flex their
muscles to help clients capitalise on
property fast will quickly become the
go-to for future purchases. ●
ADVERTISEMENT
It’s About Time...
banks put landlords further in
the black, the more they go green
Get cashback on properties with EPC ratings of A – C.
redwoodbank.co.uk | 0330 053 6067
Property secured on a loan may be repossessed if repayments are not maintained.
All information correct at 28/10/24. Visit our website for further information and full terms and conditions. Authorised by the Prudential Regulation
Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales under company
registration no. 09872265 at Suite 101, The Nexus Building, Broadway, Letchworth Garden City, Hertfordshire, SG6 3TA.
February
March 2025 | The Intermediary
23
