Guide to bridging finance
in association with
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Precise Mortgages is a trading name of Charter Court Financial Services Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register Firm Reference Number 494549). Registered in England and Wales (company number 06749498). Registered office: 2 Charter Court, Broadlands, Wolverhampton WV10 6TD.
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Guide to bridging finance
Welcome to the Bridging & Commercial Magazine guide to bridging finance, in association with Precise Mortgages
Contents 4-5 6-8 10
An introduction to Precise Mortgages AVMs and joint legal rep save time and money Case Study
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Guide to bridging finance
An introduction to
Precise Mortgages Precise Mortgages was born in May 2010 after it was recognised that there was a gap in the market to help those underserved by high street lenders. After starting out offering BTL mortgages, we extended our proposition to residential lending later that same year, followed by bridging finance in 2011 and second charge loans in 2013—all exclusively available through intermediaries. The granting of a banking licence to our parent company at the time, Charter Court Financial Services (CCFS), in 2014 enabled us to create a more diverse funding model by providing access retail deposits, while CCFS’ listing on the FTSE 250 in 2018 meant that we could plan the next phase of our development. This resulted in CCFS’ combination with OneSavings Bank in October 2019—a move which has made us bigger, better and stronger, and allows us to seek out new opportunities for brokers and borrowers. We firmly believe that although your customer’s case may be complex, applying for it shouldn’t be. Our mission is to broaden criteria to support BTL entrepreneurialism and home owning aspirations. Our technology driven underwriting and credit risk management processes mean that we can be more expansive in our mortgage and loan approvals. In the 10 years since our launch, we’ve grown to become one of the UK’s leading and most trusted specialist lenders, delivering an award-winning and innovative range of products designed to help you get the mortgage or loan your customer needs as quickly and easily as possible. So much has changed in the last decade, but one thing has stayed the same: we’ve never lost sight of why we started our journey all those years ago—to provide products for customers who are underserved by mainstream lenders. Just as we were here for you yesterday, we’re here for you today and we’ll be here for you tomorrow, through the good times and the bad. Adrian Moloney, group sales director, OneSavings Bank 4
Guide to bridging finance
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Guide to bridging finance
AVMs and joint legal rep save time and money I think it’s fair to say that the bridging finance market bears little resemblance to the sector it was a decade ago. A product that was once seen as something of a last resort has enjoyed remarkable growth over the past 10 years or so, and is now estimated to be worth around £4.5 billion.
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Guide to bridging finance
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Guide to bridging finance
The growth of bridging finance coincided with the introduction of tougher affordability requirements which made it harder for borrowers to access funds. With high street lenders not always able to offer them the solutions they needed, more borrowers started looking for alternative answers to their shortterm borrowing needs. Historically, these products have been used mainly for ensuring a property chain completes, but the solutions bridging can offer spans much further than just helping customers facing a chain break situation. No longer solely the reserve of homeowners who need to complete on the purchase of a new property before selling their current one, bridging finance is now used by customers who want to renovate or refurbish a property before selling it on, landlords reassessing their investment portfolios, businesses looking to raise capital and even those after complex BTL refinancing. Whatever the situation, bridging can now often provide a viable solution to meet a growing pool of borrowers’ needs. What hasn’t changed, though, is the importance of speed of service. As time is usually of the essence with a bridging finance case, helping customers as quickly and efficiently as possible is vital. At Precise Mortgages, we know that every minute counts, which is why our finance products could offer a short-term borrowing solution to customers who need to facilitate a deal on a fast turnaround. Our loans can be utilised where the security is currently—or intended to be used as—a residential home by the applicant or a family member. To speed the process up, we aim to use Automated Valuation Models (AVM) for standard bridging finance where possible, providing the purchase price/property value does not exceed £750,000, the loan has a gross LTV of 50% or below and the AVM achieves an acceptable confidence level as determined by Rightmove. If a customer is eligible for an AVM and chooses this option, we can produce valuations in minutes that cost just £99. We also offer joint legal representation which can significantly reduce the time it takes to complete the legal process on a bridging finance
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deal, as well as saving your customers money. Our panel of five conveyancers understand the speed and service requirements for bridging, and will work with you and your clients to complete the necessary legal work associated with the application as quickly as possible. Customers can choose from our regulated bridging finance products, which are suitable for chain break situations or capital raising, or our non-regulated bridging finance products, which could be ideal for landlords who are looking to buy a property at auction or expand their portfolio. And that’s not all. In the current climate, we’ve been working hard to ensure we continue to offer a range of bridging products and criteria designed to help even more of your customers. Take a look at our new enhanced bridging range on p11. To find out more about how we can help, visit www.precisemortgages.co.uk/bridging, speak with a member of our sales team or call our dedicated support service on 0800 116 4385.
Guide to bridging finance
For your HMO or MUFB cases: • Up to 75% LTV for 6 bedrooms/units or fewer • Up to 70% LTV for 7-20 bedrooms/units • Unique ownership structures
InterBay it. This is just one example of the many challenging cases we're able to support. We use our experience and determination to shape bespoke solutions for our brokers and their clients. So let us go the extra mile and InterBay it. Visit interbay.co.uk for more information.
For intermediaries only
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Guide to bridging finance
CASE STUDY We know that every second counts when you’re trying to secure the finance your customer needs. To help speed up your applications, we aim to use AVMs where possible, and offer joint legal representation which can significantly reduce the time it takes to complete the legal process. It’s all backed up by a dedicated underwriting service which is here to support you every step of the way, from application to completion. To illustrate how our products could help, the following case study shows you how quickly Precise Mortgages has supported customers in need of shortterm borrowing solutions.
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Bridging Finance loan, Windermere, Cumbria Our bridging finance offers short-term borrowing solutions for customers who need to facilitate a deal on a fast turnaround Whether it’s regulated bridging for customers who want to use their residential property as security to raise funds, or non-regulated bridging for experienced property investors who wish to extend or improve their portfolio, our offering is backed up by quick decisions, joint legal representation and dedicated underwriter support.
The background We were contacted by an intermediary representing a customer who needed to capital raise £180,000 against an existing residential property valued at £622,500, to enable them to purchase a holiday/second home in Windermere, in the Lake District National Park. The customer was planning to spend part of the year in the Lake District and some of the year with their daughter and son-in-law who were purchasing a new property in Preston.
The solution We received the Decision in Principle on Tuesday 1st September, followed by the full application on Thursday 3rd September. The returned desktop valuation on the customer’s existing residence passed our criteria and our solicitor satisfied all legals quickly, including one of the occupiers at the existing residence seeking independent legal advice as part of signing a Deed of Consent. This enabled us to meet our underwriting requirements within the next 24 hours and issue an offer by close of business on Friday 4th September.
Guide to bridging finance
Celebrating 10 years of specialist lending solutions
Enhanced Bridging Finance range We’re pleased to launch a new bigger and better Bridging Finance range which includes a host of enhancements to help you to place more of your customer’s cases. LTV increased to 65% £
Maximum loan size increased to £1m Wider choice of property types accepted including HMOs, new builds plus more Regulated and non-regulated bridging accepted Rates from 0.49% pm
FOR INTERMEDIARY USE ONLY.
Contact your local BDM 0800 116 4385 precisemortgages.co.uk
Precise Mortgages is a trading name of Charter Court Financial Services Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register Firm Reference Number 494549). Registered in England and Wales (company number 06749498). Registered office: 2 Charter Court, Broadlands, Wolverhampton WV10 6TD.
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01966 (1)
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Now includes standard and light refurbishment products
Celebrating 10 years of specialist lending solutions
Short term financing to bridge the gap Our Bridging Finance could help your customer get a quick solution to their short term borrowing needs: Regulated and Non-Regulated Bridging Finance products available AVMs (Automated Valuation Model) available subject to criteria Joint legal representation
FOR INTERMEDIARY USE ONLY.
Contact your local BDM 0800 116 4385 precisemortgages.co.uk
Precise Mortgages is a trading name of Charter Court Financial Services Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register Firm Reference Number 494549). Registered in England and Wales (company number 06749498). Registered office: 2 Charter Court, Broadlands, Wolverhampton WV10 6TD.
01966 (2)
Get in touch
Dedicated support teams
