Distributors get serious about bridging

The deal involves Precise Mortgages becoming a preferred bridging lender for Ingard Financial, Mortgageforce, Pink Home Loans, Personal Touch Financial Services, PMS, Sesame and SimplyBiz Mortgages. The partnerships have been formed on the forecast that the bridging market is likely to see continued growth and mortgage distributors wishing to ensure they are managing their risks accordingly.

Alan Cleary, managing director of Precise Mortgages, says:

“We’ve partnered with these distributors in a bid to clean up the bridging market which, at the moment, is a minefield for borrowers. I have taken a good look at this market and in my opinion many bridging lenders have a different view of what the word transparent means. 

"There is a myriad of interest and fee charging methods many of which are not good for the borrower and this is compounded by the inconsistent information provided to borrowers which makes deal comparison almost impossible.  Precise Mortgages has a principal to treat all types of lending secured on residential property in a manner consistent with FSA regulation.”

Robert Sinclair, director of the association of Mortgage Intermediaries, added:

“I have said before that any regulated intermediary who places bridging loans with an unregulated lender should be very careful, in my opinion all open residential bridging should be treated as though it is a regulated product.”