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Let’s take the lead and not wait for regulator intervention

I am a great advocate for business generating profits however there is a fine line between fair and ethical practices on which a long term business can build and some of the less ‘attractive’ practices.

In my opinion the recent media which continues to try and justify ‘Default’  rates for short term ( bridging lending ) treads the wrong side of that line. The argument made FOR, which I have taken directly as a quote from a recent article  is:  ‘ Default rates help to focus the mind of a borrower as they approach the term end of a facility and encourage them to discuss alternative options before it’s too late to do so.Let’s take the lead and not wait for regulator intervention

In my opinion this is wholly a false premis. A responsible bridging lender should be in regular contact with a borrower at various stages of the contract , gently reminding the client of the term remaining and ascertaining the level of progress made in respect of the exit. This gives the lender an understanding of any problems which may arise AND the opportunity to discuss those ‘alternative options’ . The application of a default rate should not be a  pre-requisite of these discussions.

Bridging finance is already a relatively expensive way for a client to borrow ( though I accept much cheaper now than in years gone by ) and sensible lenders with good underwriting should be able to make a fair and ethical profit on their day 1 rate. Moreover, on those occasions when things do not go to plan, the lender continues to profit without additional acquisition costs by applying further interest at the initial contractual rate for that additional time. In my opinion Default Rates have only one benefit and that is to a lenders ‘bottom line’.

As a responsible lender I would ‘implore’ all participants in the market to carefully consider if this model is in all our best interests. Let’s take the lead and not wait until inevitable intervention by regulators who recognise poor practice!

Historically bridging loans should have a swift completions, the modern day reality is often they are little quicker than a residential mortgage but HFBS are different, old fashioned great service with a proven track record of achieving amazing customer service.

HFBS will go the extra mile to meet a customers expectations, whether that is speed, efficiency, meeting face to face at short notice up and down the country or just delivery on what they offer, they will meet the customers’ expectations.

Simply put, HFBS deliver market leading service, every day…

Mr Matt Tristram, Co-Founder & Director of Loans Warehouse

The recent completion of a £205,000 advance, secured against a purchase, and completed in just three working days from initial contact prompted the following response from one of our significant introducers:

“Here @ Y3S we always have a positive approach, regardless of time constraints and tight deadlines. This case in particular was a challenge to say the least. But we knew, if we had the right partner and the right attitude, then this is something we could achieve. This is not the first time with have used HFBS, so we knew we had the right partner on board. From start to finish, Ian & his team mirrored our own enthusiasm to get this one done”

Mr Andrew Gage, Y3S Group

More4 Loans selected HFBS as our preferred bridging lender because they are exactly the type of lender we want to partner with. Not only do they offer a fantastic range of bridging loan products and with nationwide coverage, their speed of service is second to none. Ian and his team are quick to reply with approvals in principle and as they don’t need clients to employ solicitors can often turn round cases to completion in a matter of days. More4 Loans would have no hesitation in recommending other mortgage brokers, IFA’s or intermediaries to use HFBS

Mr Steve Pollard, More4Loans

HFBS are an innovative and dynamic company. Their bridging loan proposition fulfills a much needed niche in the bridging market. They take a common sense approach to lending and offer a great level of service.
Referring cases over to them could not be more simple and we are assured that our clients will be dealt with in a professional manner.

Mr Ian Miller, Highcroft Securities

When you need hassle-free, fast bridging I would always recommend HFBS. Every time they deliver again and again.

Mr Chris Warner, First4Commercial

We have worked with Holme Finance Bridging Solutions (HFBS) on many occasions over the years, primarily for smaller bridging loans of between £10k and £200k. Without doubt they are the best performing bridging company we have used. They always do what they say and move quickly to complete a deal and pay the commission. If its not one for them, you are told at the outset so you can immediately try and place elsewhere

Mr Gary Latham, bridgingloans.co.uk

Ian always finds time to chat through each potential deal, always honest in his assessment, and if he says he can do it, he will, promptly and efficiently! How refreshing in today’s market!

Mr Mike Wipfler, Lodhi Finance