FP Show 2013: Following the paw prints

By Bridging Loan Directory -

 

paw printAt this year’s inaugural Finance Professional Show we carefully followed the paw prints which led us to Karen Bennett, Director of Sales and Marketing, Commercial Mortgages at Shawbrook Bank.

With the demand for short term loan (STL) products for property investors increasing greatly over the last few years we spoke to Karen about her view on the market:

 

“Specialist lenders like challenger bank, Shawbrook offer innovative and flexible products to help brokers advise customers. This has given investors the added security of using STLs with more term investment solutions available thereafter. For example, our short term products enable investors to purchase or refinance quickly with the option to refinance onto a term loan with us, sometimes releasing additional funds in their residential property following refurbishment.

Transparency is a key challenge that the bridging market continually faces.  The lenders need to take accountability for ensuring all their costs and fees are clear and transparent to allow the brokers to make an informed decision when recommending a lender to their client.  I also feel the industry needs to be mindful of volume incentive plans.  The MMR clearly highlighted that lenders should not be incentivising brokers financially to generate larger volumes and the brokers need to ensure that they can justify the reasons for recommending a lender and ensuring this isn’t linked to any kind of volume override.  If these schemes continue it’s only going to strengthen the likelihood of all bridging becoming regulated.”

Overall we found it to be a good event with excellent attendance and a real feeling of optimism.