‘We are here taking calls in the evening, weekends and when we are on holiday’

The chances are low but if you do need to get in touch with a bridging lender on Christmas Day then there is at least one that may be willing to push aside the sprouts to pick up your call.

Jonathan Caplan, chief executive of Manchester based Grosvenor Funding – which is joining the Bridging Loan Directory – said being available 7 days a week was part of the group’s focus on old-fashioned lending.

“We are here taking calls in the evening, weekends and when we are on holiday. Some of us may take Christmas Day off, but I don’t!” Caplan says.

“We are always open for business. It is the nature of what we do. Brokers want to get hold of you at anytime.”

Industry veteran Caplan should know. He has been on both sides of the property lending fence.

He began his working life as a self-employed mortgage broker in 1988 and then following the financial crash of 2007 decided to make the move into lending founding, along with family members, Lowry Capital.

“After the credit-crunch and the collapse of banks such as Northern Rock the mortgage market became a lot harder to deal in,” he says. “Lending seemed a more attractive option.”

After a successful stint helping build Lowry, Caplan returned to the world of broking as a director at First 4 Bridging – now Envelop.

One year later he returned to lending when he and Breandan Flynn set up Grosvenor Funding which is focussed on residential investment nationwide.

“I wanted a change. I had all this experience and history as a broker and lender and I knew exactly what they wanted from each other,” he explains.

“As a broker I found that there are only one or two lenders in the market who give you what you want. So, I thought why not start my own bridging loan company?”

So, what exactly do brokers want from lenders? What has Caplan’s experiences taught him?

“Don’t move the goalposts,” he says succinctly. “It is as simple as that. A lot of people get fixated on rates with bridging loans.

But the number of brokers who agree a deal on day one with a lender only for those goalposts to be moved later at the death is scary. Some lenders are infamous for it!”

He adds: “With a bridging loan you need to be able to trust your funder which you can’t do if you think they are going to change their minds at the last minute.

Where we have a difference with other lenders is that you can call me, and we can agree a deal on Day One. As long as you’ve told me the truth and you stick to your side then I will stick to that agreement.

We will deliver what we promised you on Day One.”

Caplan returns to his ‘old-fashioned’ theme saying he focusses on three key areas around a deal – LTV, security and exit.

“That is what it is all about,” he states. “As long as the security is there, and I am comfortable with an exit then I am happy. It is why we can do deals so quickly, often in days. Speed and service are key.”

Another factor helping Grosvenor deliver these quick deals is the waiving of solicitors’ fees at the beginning of a deal.

“A lot of deals fall down because a lot of lenders solicitors insist on a fee up front,” he says.

“At the moment many people are asset rich and cash poor. If you are refinancing your property and the solicitor wants £4,000 after you’ve received your offer on Day One, it is going to cause a problem.

We do not request a solicitor’s fee on Day One. That makes a big difference to people as they are not under pressure to find the funds.”

The speed of a deal is also helped by that willingness of Caplan and his colleagues to be directly contacted anytime, anywhere by brokers.

“It’s not all about human relationships though. Old fashioned doesn’t mean behind the times. The use of technology is vitally important in today’s industry,” he says.

Indeed, Grosvenor is currently revamping its website and is in discussions regarding new CRM (Customer Relationship Management) systems.

Whatever the model, it appears to be working. Caplan says lending amounts have climbed by 50% to date this year compared with an already ‘strong’ 2022. He envisages a similar growth rate in 2025.

“In the first two or three years of the business we built up gradually working with only a few brokers,” he explains.

“What I’ve seen over my career is that after you’ve been in business for about 5 years or so people realise that you’re here to stay. Your reputation also builds,” he says.

“We’ve really taken off this year. We have taken time to find the right people and have secured new funding lines from two banks in the last month.

In addition, our main funder is increasing its facilities next month as well. The funds are there, and we are looking to grow.”

The market has also helped with Grosvenor picking up work from failed P2P lenders.

“They did a lot of development work, so you had these poor people finding out halfway through their projects that their lender had disappeared. We stepped in and saved many sites.”

Generally, he believes the bridging market is strong and will remain so for the foreseeable future.

“There is always talk currently about this massive correction coming in property prices. I’ve been hearing that since 1988!” he says.

“There is a shortage of homes in this country. Property has proven time and time again that even if there are short-term losses it bounces back.

There is a lot of business out there for all of us although I wish the pace of deals quickens up. Exits are taking longer. It takes too long for our rivals to complete a deal.”

Caplan hopes joining the Bridging Loan Directory will help further boost its profile and reveal its differentials.

“We want more of a presence in the marketplace and BLD is the most credible platform out there,” he says.

Caplan also intends to become more visible. “I’ve been busy doing a lot of work building up the back office of the business and credit control.

But this year we employed a new risk manager taking our total to 10 staff and it has freed me up to go and meet more brokers and secure new work.

Sometime people like to see the man in charge.

When I see the brokers, I say try us once and the majority of time when they do, they stick with us.”

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