Where Are The Opportunities?
By Brian Rubins, Executive Chairman
This is first and last time I will mention COVID-19, so let me say it now – notwithstanding COVID-19, opportunities are everywhere! Yes, everywhere, even as we go into the Christmas holidays and the malaise normally caused by the festive season.
With just a few weeks to yo ho ho time, why not push hard and get those loans that are work-in-progress over the line and completed. Often, there is very little outstanding so ask your lenders what you can do to expedite completion. Often, just before drawdown, it is trivia – some insurance details, a statement to show the balance outstanding, evidence of identity to complete the MLA. Resolve these mini-issues and the 3C’s come your way – completion, commission and Christmas. Yours for the taking.
And going forward, what are the opportunities to plan for now and into the New Year.
With most eyes focused on residential bridging, oh what a crowded place that is, think more widely as some of the obvious opportunities are being tinkered with at best and totally overlooked in the extreme. Now is time to address the wider picture with targeted campaigns.
First, expand your offer to include commercial property – retail, office and residential properties, and warehouse and industrial premises. A less competitive market place but one with strong demand which is well served by a number of forward thinking lenders.
It is not brain surgery to recognise that second charge bridging is much more cost-effective than repaying the inexpensive first charge and replacing it with a more costly bridging loan. Not every bridging loan lender has a second charge product but regardless if the extra funds are to consolidate credit, finance a business or improve the property, a second charge bridging loan is a swift and simple solution, available from those lenders offering a range of products.
The buy-to-let market is in flux because of changing patterns of occupation – demand for larger properties because of working from home, the need for outside space especially for families and then the reverse, inner city demand to avoid commuting. With downward pressure on rents in some places and shortage of stock in others, it is a time for your clients to improve and extend their BTL stock, either already owned or being purchased, funded by a first or second charge bridge with an inbuilt refurbishment facility.
Then there is the question of true flexibility, loans which can be drawn down, repaid and then drawn again on multiple occasions. Loans secured by under-utilised assets, available to use as and when necessary in the same way as a bank overdraft. With the benefit of interest only charged when the facility is used and the ability to return the funds until needed again, it is a cost effective and flexible loan providing liquidity on tap, whenever it is needed.
So, for introducers and borrowers alike, this is the time for thinking outside the box and recognising and benefitting from opportunities.
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Click here to read the article in the December Issue of Mortgage Introducer
Click here to learn more about our Bridging Products.