View from the ground – the short term loan market

By Bridging Loan Directory -


Shawbrook BankShawbrook is committed to making it as easy and efficient as possible for introducers, brokers and their clients to win and complete new business. As part of this the bank has a team of field based Regional Development Managers, of which Emma Cox is one. Emma outlines her thoughts on the priorities for introducers working in the market below.

“Having strong relationships is as vital as ever in the short term market. Introducers will always look to work with lenders who they know can deliver on what are often challenging cases. It’s important to regularly speak to brokers so that they are kept up to date with the progress of the case and to ensure, due to the tight timescales, everything is on track.

Pricing is another key priority for introducers and the price will always have to be right to reflect the deal. Providing full disclosure to clients and introducers on how interest is charged and commissions paid is vital.

But pricing isn’t the only factor. Brokers need to know that lenders can deliver on what they promise with speed and efficiency. It’s always important to show a ‘can-do’ attitude. Brokers want to have confidence in their lender of choice and they need to be sure that the lender can deliver for clients in what are often highly pressurised and challenging cases. It’s important to understand that no two deals will ever be the same and taking a flexible and agile approach to meet tight time scales is crucial.

Commission rates in the market will always have to reflect the vast amounts of work from the start, but we know that transparency is a key issue for introducers. Lenders must have transparent pricing which is available to all brokers.

We have recently seen more lenders getting involved in the short term market with products specifically aimed at property professionals each with their own business models based on their objectives for the property i.e. rental income, appreciation in value or both. At some point, most will be presented with time sensitive opportunities where competitively priced short term finance can really support their business models and help achieve their objectives. Whilst the rates are attractive to clients, there is also the added security of borrowing from a bank that can offer long term investment solutions.

Transparency will always be one of the key challenges that the bridging market faces. Lenders in the market need to take accountability to ensure that all their costs are clear. This allows brokers to make an informed decision on the total amount payable before recommending a specific lender to a client. The industry as a whole needs to continue to be aware of volume incentive plans. Brokers will always need to ensure they have justification behind their reasons for recommending a lender. The likelihood of bridging becoming regulated is only going to increase if incentive schemes continue.

It’s an exciting time for Shawbrook and we are committed to making Shawbrook the lender to follow in 2013. We are serious about becoming a serious player in the STL market for property professionals. We know some may feel it’s a huge leap of faith when considering switching your bridging provider, but Shawbrook has proven that we can deliver in terms of speed, service as well as having the best rates in the market.”

Alex King, executive director, SPF Short Term Finance, said:

“Shawbrook’s ‘can do’ attitude is seeing their reputation grow further as a credible lender to experienced property clientele”.