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RESPONSES TO THE LATEST EY BRIDGING FINANCE MARKET SURVEY
Over the last few months, the bridging finance space has arguably seen its biggest evolution in recent years, and this is set to continue throughout 2023. Many factors have contributed to this—we caught up with MS Lending Group’s CEO Michael Stratton and managing director Rob Goodall to discuss this further.
What are the key challenges impacting lenders in 2023?
MS: The EY survey shows lenders have become more cautious, and will continue to assess the risk versus reward relative to the lenders appetite.
Getting the money out is the easy part, getting it back is not so easy— this has never been more relevant than in today’s conditions. A key challenge will be managing the transactions which completed during the peak of the market last year, and helping those customers come off those loans in a very different landscape today. Having a clear identity, staying firm on decision making, and sticking to what we do well is our main prerogative during this period.
What should customers consider when choosing a bridging lender?
MS: Customers should focus on what’s most important to them. Many people think rate is the most important, but this is relative to the overall transaction. If a client has committed to buying a property by a certain date and is time pressured, then the rate can potentially become of least importance and speed take priority—this is why our No Valuation product is extremely popular for buyers with time constraints.
The experience of the individuals within a lender should also naturally play a large part in a firm’s credibility to perform, and the client’s choice of lender. As I often remind the team: “It takes many good deeds to build a good reputation, and only one bad one to lose it.”
What are the key capabilities to remain a successful bridging finance lender?
RG: You need to have multiple funding lines, understand your customer and ensure that your own internal processes and procedures are in place to fund transactions in a timely manner. Also, the importance of your back book and working with customers who have gone beyond term cannot be underestimated.
MS LENDING GROUP LAUNCHES NO VALUATIONS UP TO £500,000 ON RESIDENTIAL, SEMI-COMMERCIAL AND COMMERCIAL
JANUARY
2022 SEPTEMBER
MS LENDING GROUP WINS TWO INDUSTRY AWARDS
2022
OCTOBER
MS LENDING GROUP CELEBRATES SECOND ANNIVERSARY
DECEMBER
MS LENDING GROUP CELEBRATES RECORD-BREAKING MONTH, LENDING £17.5M
2023
MARCH
MS LENDING GROUP LAUNCHES NEW MSXC PRODUCT
JULY
MS LENDING GROUP SECURES £50M FUNDING LINE 2022
OCTOBER
2022
DECEMBER
MS LENDING GROUP FUNDS RECORD £7.6M DEAL IN LESS THAN 10 DAYS
2023
JANUARY
MS LENDING GROUP EXPANDS OFFICE SPACE
MS LENDING GROUP REACHES £100M FUNDED
