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ISSUE 38 MAR/APR 2025

Funding for ambitious property investors 75% LTV NET day one 100% of build costs funded Rates from 0.73% per month (BBR linked) £260 million funded in 2024

0345 222 9009

deals@octanecapital.co.uk

octanecapital.co.uk

For use by mortgage intermediaries only. Rates can go up or down with BBR. Octane Capital Ltd (Reg No 10481270), Octane Property Finance Ltd (Reg No 10483453) and Octane Property Finance 4 Ltd (Reg No 12491136) are private limited companies registered in England and Wales having their registered office at 20 Grafton Street, London W1S 4DZ.

ISSUE 38 MAR/APR 2025

Lifting the lid on what the bridging market really looks like + Low hanging fruit for brokers p22

Bridging Finance

We go further so you can too

The partnership that takes you further United Trust Bank are relationship-builders. We believe the most eﬀective relationships are the ones with the most trust, familiarity and longevity – those are the relationships we build. Regulated & Unregulated | Refurbishment | Instant Dips | AVM

United, we go further

Acknowledgments Editor-in-chief Beth Fisher

Magazine manager Dhuha Al-Zaidi

Creative direction Beth Fisher Dhuha Al-Zaidi

Sub editor

Christy Lawrance

Contributors

Natalie Anderson, Donna Francis, Stephen Todd, Hiten Ganatra, Daniel Liechtenstein, Josh Knight, David Smith, Dale Jannels, Lewis Casserley, Vic Jannels, Rosalia Lazzara-Tilley, Rob Barnard, Sarah Tucker, Marc Champ, Luke Navin, Matt Davies, Charissa Chang, Gemma Roberts

Photography

Alexander Chai

Sales and marketing Beth Fisher beth@medianett.co.uk

Special thanks

Natalie Anderson, Connect Mortgages Jason Wyer-Sith, 42 PR Caron Schreuder, Long Storey Short Kim McGinley, Rosalia Lazzara-Tilley, Anastasia Ttofis, Ladies Who Cannes Paul Hunt / Crofton Bonney, Square1 Media

Printing

The Magazine Printing Company

Design and image editing Jana Rade, impact studios

Bridging & Commercial Magazine is published by Medianett Publishing Ltd

Managing director

Beth Fisher beth@medianett.co.uk 0203 818 0160 Follow us: Twitter @BandCNews | Instagram @medianettpublishing

To read about our commitment to the environment and sustainable print publishing, please visit https://bridgingandcommercial.co.uk/page_magazine.

’ve felt it since January, and it’s still buzzing in the air: an undeniable energy. The kind of momentum that signals change is happening fast in the specialist property finance world. While Q1 might usually feel like a slow burn, this year? It’s been all systems go. As we dive into the thick of 2025, we’ve packed this issue with the exclusive stories, data, and a few surprises—everything you need to understand the shifting landscape of our market. Our cover story this month is a real game-changer: the Annual UK Bridging Market Survey, crafted in partnership with EY, offers a snapshot of the trends defining the sector [p38]. There are big shifts at play since last year, particularly in the surge of competition and the growing adoption of AI. These themes are front and centre in this issue as we explore seismic changes—and how to ride the wave to stay ahead. Technology’s influence is impossible to ignore, and Hypercore is leading the charge with its data-first loan management platform [p18]. This tool aims to revolutionise risk management and streamline automation, setting lenders up for scalable growth. Plus, we’re diving into the numbers with exclusive commercial property insights from VAS Group’s latest valuation report [11]. We’ve also had our finger on the pulse of the most exciting players shaping the future. In Cannes, we caught up with some incredible minds at the Ladies Who Cannes event, where the conversations were as rich as the weather was... wet [p68]. But the rain didn’t dampen the excitement—if anything, it made the ideas flow even faster. United Trust Bank opens their doors to reveal their brand refresh and the game plan for dominating the unregulated bridging space in 2025 and beyond [p88]. It’s a story of reinvention, ambition, and the kind of innovation that’s changing the game. Meanwhile, Octane Capital’s Josh Knight gives us a sneak peek into the high-growth areas within bridging, highlighting the opportunities brokers should be watching [p22]. On the other side of the country, Empire Global and Allsop weigh in on how brokerages outside of the South are creating their own success stories [p80], while JMW Solicitors breaks down recent legal changes that could affect lenders looking for breathing space [p32]. We also explore the rising power of social media in the broker community. Manuka Media shares a blueprint for brokers to harness platforms like never before [p62]. Plus, if you’re wondering about the growing role of packagers in the market, we’ve got the inside scoop, analysing OMS Systems’ data to uncover why brokers are increasingly turning to packagers for bridging solutions [p31]. And we’ve got some tough questions on the table. In our broker roundtable, we tackle the issue of whether smaller deals are getting overlooked by brokers and lenders [p94]. Are they charging higher fees for these smaller deals—and is that really fair? Meanwhile, Albatross Capital examines the impact of lenders pushing up to 75% LTV on an AVM alone—and what this could mean for the sustainability of the market [p50]. It’s an interesting time in our sector, and we’re here to help you navigate it with clarity and confidence. Whether you’re a lender, broker, or investor, this issue will inspire you to think bigger and act faster. Happy reading.

Beth Fisher

Mar/Apr 2025

“Bridging has long been used to solve problems. But now, more so than ever, it can play a vital role in helping investors and developers to stay agile”p27

10 18 22 32 38 50 56 62 68 72 77 88 94

The Cut News Exclusive Explained Cover Story Zeitgeist Interview How To Guide Experience Opinion View One Day In Conversation

VAS exclusive commercial property data

Welcoming AI in loan transactions

A basket-full of opportunities for brokers

Room for lenders to breathe / Tech boosts loans

Lenders are competing for the top spot

Desktop valuations under scrutiny

Vic Jannels

Gain business through your personality

A solo business trip boosted my confidence

An underrated support system

Bridging loans: What’s changing? / A hidden white knight / Setting a new standard

Getting comfy with UTB

Debating the value of a broker’s role in small loan transactions

The Finance Professional Show

Friday 21 November Olympia London 9:30am - 4:30pm

Discover the deals shaping specialist finance To enquire about sponsorships and packages, please contact fpshow@medianett.co.uk

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THE CUT

The Cut

Development residential finance valuations: what’s behind the figures? The number of valuation instructions for housing development in the past year have remained flat, according to VAS’ instruction data report from 2024. What is behind these figures—exclusively shared with B&C—and are they as stagnant as they first appear? Four industry experts share their insight on the reasons for this, the decline in bridging for BTL acquisitions and what investors are looking at now

Mar/Apr 2025

The Cut

Natalie Anderson

Mortgage and protection adviser at Connect Mortgages I think numerous factors explain this. The first is tighter credit conditions; many lenders have tightened their underwriting due to increased risk perception and reduced availability of development finance, creating downward pressure on valuations. High interest rates and inflation have also increased costs considerably for developers, reducing profit margins and depressing valuations. The softening property market has meant that residential and commercial properties have seen slower price growth in many areas and even a decline in some. Increased environmental and building regulations have added to development costs and uncertainty about future regulations, which could deter investment. Finally, economic and political uncertainty have dampened investor confidence and appetite for risk, making it less likely for them to invest in development projects. Growth can be driven by lower interest rates to improve developers’ margins and stimulate higher valuations, and institutional investment in development could support more valuations. If inflation and the cost of materials become more stable, development profitability could improve.

Stephen Todd

CCO and co-founder of VAS Developers have been impacted over recent years by several factors—the rising cost of debt (linked to base rate increases), limited available equity, labour shortages, increased material prices due to supply shortages and a slow sales market. All of these factors have amounted to a significant drop in activity over the past two- to- three years. However, the downward trend in interest rates and destabilisation of land prices is boosting project viability. For SME developers, I think many are also waiting to see what the government will do to free up the planning system to deliver on its mandate to build more houses across the UK. I expect to see this percentage increase in the short to medium term; the extent will depend on what the government does and the developers’ ability to borrow.

Donna Francis

Managing director at Envelop These valuations have largely remained the same through a combination of high interest rates, inflation and sector-specific challenges. In residential development, rising mortgage rates have reduced affordability, while planning delays and high construction costs have slowed the new housing supply. Institutional investors favouring building housing to rent over for sale have further constrained growth. Commercial development has struggled with declining office demand due to hybrid working, weaker retail performance and stricter energy-efficiency regulations. However, potential interest rate cuts, government-backed housing initiatives, private sector investment and modular construction could drive residential growth. Commercial opportunities may arise from repurposing office and retail spaces, increasing demand for logistics properties, ESG-focused financing and sustained foreign investment in prime UK locations.

Bridging & Commercial

The Cut

DEVELOPMENT FINANCE VALUATIONS HAVE BEEN RELATIVELY UNCHANGED FOR TWO YEARS, AT 5%. WHAT FACTORS EXPLAIN THIS? WHAT CAN DRIVE GROWTH NEXT YEAR? Hiten Ganatra

Managing director at Visionary Finance and Mortimer Street Capital A combination of factors has probably driven this, which has resulted in depressed demand. This is borne out from figures published by HMRC, which show that although the non-seasonally adjusted estimate of the number of UK residential transactions in January 2025 is 81,360—which is 21% higher than January 2024—this figure is still 17% lower than in December 2024. These factors undoubtedly include a reluctance by the government to reinstate some form of incentive, like Help to Buy or reducing stamp duty. Things such as the global pandemic, economic uncertainty caused by conflicts and a change of government on both sides of the Atlantic (this includes uncertainty regarding tariffs), could mean many potential buyers may just be sitting on their hands to wait for a period of calm. There is also still uncertainty around materials costs, plus regulation around the Fire Safety Act. These impact confidence when appraising schemes and, for the latter, a general nervousness in the flat/apartment sector.

Mar/Apr 2025

The Cut

THE VALUE OF INSTRUCTIONS FOR SEMI-COMMERCIAL ASSET TYPES HAVE EXPERIENCED THE HIGHEST GROWTH, UP TO £2.2BN. WHAT CONTRIBUTED TO THIS, AND WILL IT CONTINUE OVER THE NEXT YEAR? Stephen Todd

CCO and co-founder of VAS The surge in semi-commercial is a result of investors’ bids to achieve diversity in their portfolio and maximise yield, borne out of rising interest rates and necessary assessment of profit strategies once their fixed-rate interest periods have ended. Typically, the yield on semi-commercial assets is higher than on standard BTL properties. The hybrid earning potential decreases overexposure to residential, and investors benefit from taxation that differs from that of resi BTL (around management and maintenance costs, for example). It is anticipated that this will continue as long as landlords experience their profits being squeezed by regulatory and tax pressures.

Bridging & Commercial

The Cut

Natalie Anderson

Mortgage and protection adviser at Connect Mortgages Strong demand for mixed-use properties has diversified income streams from retail, residential and office components. Conversions into residential and flexible workspaces have enhanced returns. Housing shortages and high rental demand have also boosted residential-linked valuations. Investor appetite for stability is apparent, as mixed-use properties offer defensive, stable cash flows in a volatile market. Attractive lending terms and tax benefits may have also supported investment. Growth is likely to continue, driven by potential rate cuts, ongoing residential demand and adaptation of underperforming retail/office spaces—but inflation and planning restrictions could temper the pace.

Hiten Ganatra

Managing director at Visionary Finance and Mortimer Street Capital

Donna Francis

Managing director at Envelop Semi-commercial asset growth has been driven by robust rental yields, diversified income streams and the broader availability of competitive financing options. Investors continue to be drawn to stable and longer-term returns, while the decline of traditional retail and office spaces has led to increased conversions into mixed-use developments. Urban regeneration efforts and localised living trends have further boosted demand. Future growth will depend on interest rate adjustments, government support for brownfield development and increased ESG investment. While repurposing underused commercial properties will remain a key driver, planning restrictions and shifting tenant demand may slow momentum. Despite challenges, semi-commercial properties are highly likely to remain a strong investment choice for portfolio diversification.

We have seen a similar rise [in interest in semi-commercial] among our property investor clients, and this isn’t surprising as they seek to increase yields across their portfolios. I do see this continuing, plus a growth in non-standard properties being added to portfolios, especially as standard rental stock may become more difficult to come by. In addition, less regulation and government intervention in this space make it more lucrative as investors can sweat their assets better in the semi-commercial space. Permitted development and the relaxation of the rules around what you can do with semi-commercial properties also make it more attractive.

Mar/Apr 2025

The Cut

Stephen Todd

CCO and co-founder of VAS Given the relatively small size of this decrease, we’d opt rather to focus on the fact that bridging is being used for almost half of all BTL purchases—more than for any other property type. It is fuelling this market, especially where below market value and value-add opportunities are concerned. Investors are using bridging as a viable tool to grow and diversify their portfolios, especially where they need to act fast and improve the value before moving onto longer-term debt. It aligns with the market being creative and entrepreneurial in its approach and using bridging to achieve this.

Natalie Anderson

Mortgage and protection adviser at Connect Mortgages The decline has been caused mainly by a shift in market conditions and investors’ behaviour. For example, higher interest rates have increased borrowing costs and thus reduced profitability. Tighter lending criteria have meant stricter affordability tests, making financing harder. Also, lower rental yields have led to softer house prices, and rising costs have squeezed returns. This includes higher taxes and stricter rental rules, which added pressure. Demand may recover if rates fall and rental yields improve.

Donna Francis

Managing director at Envelop This decline reflects higher borrowing costs and stricter affordability assessments, which have made refinancing significantly more difficult— especially for those with smaller portfolios. Regulatory changes, including higher stamp duty, potentially stricter EPC requirements and tax adjustments, have reduced profitability, prompting many landlords to exit or scale back investments. Market uncertainty and softening property prices have further discouraged direct BTL acquisitions. Instead, bridging finance is increasingly being used for refurbishments, conversions and semi-commercial developments—where value-add opportunities offer better financial viability. The PRS is certainly becoming more professionalised, with institutional investors driving market shifts and portfolio landlords exploring alternative financing strategies. This is where the intermediary market should be focusing its attention in 2025.

Bridging & Commercial

The Cut

BRIDGING BEING SOUGHT FOR BTL INVESTMENT PURCHASES FELL TO 44% FROM 49% IN 2023. WHAT CAUSED THIS DECLINE? Hiten Ganatra

Managing director at Visionary Finance and Mortimer Street Capital This isn’t a huge decline, and bridging finance is one of many options available to property investors to enable them to expand their portfolios. Often, bridging finance is used for speed to snap up opportunities that become available, but possibly, with fewer housing transactions, speed is becoming less of an issue, as there is less competition, so many investors can release equity from portfolios via remortgaging or even selling lower-yielding stock. Despite this, and if I’m honest, we’ve seen an increase in the use of bridging finance despite official figures saying something different. Sophisticated landlords are acquiring properties below market value and using bridging to acquire investments for speed, and then carrying out upgrade works to increase their value. Once refurbishment works have been completed, landlords will use bridging finance again to fund the expenses.

Mar/Apr 2025

News

Bridging & Commercial

News

USING AI TO COLLECT, DISORGANISED DATA MANAGE, AND ANALYSE

Brokers and lenders often receive borrower and loan information in an unstructured format—via emails, CRM reports and third-party platforms. Underwriters must manually compile this data to create borrower profiles and progress loan applications. This manual process is time-intensive, introduces potential errors and can delay deal progression. Key risk assessment data may be entered incorrectly or overlooked, impacting decision-making. In an era of APIs, automation and AI, specialist lenders can benefit from a streamlined approach to borrower data management—one that enhances borrower profiling, improves regulatory compliance and accelerates underwriting while reducing credit risk.

BORROWER AND LOAN DATA IMPROVES SPEED, ACCURACY, AND COMPLIANCE—MAKING IT THE NEXT LOGICAL STEP

FOR FINANCIAL FIRMS SIMPLER DATA MANAGEMENT Lenders are increasingly adopting AI-powered borrower data management tools to reduce manual data entry, improve underwriting workflows, and enhance compliance. At the core of this are AI-powered borrower forms. These digital forms can be sent to borrowers and automatically populate key details within the lender’s system, allowing lenders to collect structured data directly from applicants, reducing processing delays and improving accuracy. These forms can be customised and white labelled to match the lender’s brand. Recognising that many borrowers and brokers dislike filling out forms manually, some AI-based solutions include features that further simplify this. Instead of requiring manual entry, borrowers or brokers can forward email conversations and attachments, and the system will extract the relevant details, filling in the necessary fields within a lender’s system. This reduces backand-forth communication and ensures borrower information is captured consistently. Once a loan enquiry is processed, these AI-based tools centralise loan-related information, linking borrower profiles, loan applications and broker interactions in one place. This enables lenders to track applications, manage client relationships and monitor deal progress more effectively. Beyond initial loan inquiries, AI-driven platforms centralise borrower profiles, loan applications, and broker interactions in one place, allowing lenders to track applications, manage client relationships, and monitor deal progress more effectively. Such platforms are built for bridging, commercial, and development lenders to streamline this process, using AI to automate data collection, structuring, and decision support—helping lenders reduce inefficiencies and maintain full visibility at every stage of the lending process.

LOOKING TO STREAMLINE OPERATIONS AND STAY AHEAD OF REGULATIONS

Words by

DANIEL LIECHTENSTEIN

CEO and co-founder of Hypercore

he UK’s specialist lending sector—bridging, commercial and development finance—plays a crucial role, enabling borrowers underserved by traditional banks to access funding. However, many lenders in this sector have yet to fully leverage the power of AI-driven data management. AI is addressing long-standing inefficiencies in UK bridging and commercial lending, enabling lenders to operate with greater speed, accuracy and compliance. According to a 2024 report from the Bank of England, 75% of firms are already using AI, with an additional 10% planning to adopt AI within the next three years. This exceeds the projections from the 2022 joint report by the Bank of England and the FCA, ‘Machine Learning in UK Financial Services’, which estimated adoption rates of 58% and 14% respectively.

MORE INFORMED DECISIONS AI can process structured and unstructured data in hours instead of days, and lenders can make faster and more precise credit risk assessments. Machine-learning models improve creditworthiness predictions by analysing patterns across vast datasets, identifying risks with greater accuracy, and reducing human bias. AI-driven deal structuring supports underwriters by automating calculations, scenario analysis, and risk evaluations, allowing for more data-backed, consistent lending decisions. Loan origination is just one phase of the lending lifecycle. AI also enables real-time borrower performance monitoring, offering lenders proactive risk assessment capabilities. AI-assisted data 19

Mar/Apr 2025

News

analysis tracks financial health indicators, flagging early warning signs of potential defaults before they escalate. So it is not surprising that financial services firms are increasingly allocating resources to AI-driven solutions. According to UK Finance’s report ‘Generative AI in Action: Opportunities and Risk Management in Financial Services, financial firms allocated 12% of their technology budgets to AI in 2024, with that figure expected to rise to 16% in 2025. Furthermore, 75% of executives from large corporations and 86% of SMEs have reported satisfaction with their AI-driven initiatives, demonstrating increasing confidence in AI’s ability to streamline operations and enhance decision-making.

EXPANSION AND GOVERNANCE Regulatory frameworks are evolving to accommodate AI-driven solutions, with a focus on transparency, accountability and data governance. Lenders that integrate AI now will be better positioned to navigate changes while enhancing their operational efficiency. Looking ahead, AI’s role in loan structuring and borrower monitoring will expand. Machine learning algorithms will enable personalised loan offerings, while continuous financial monitoring will provide early indicators of borrower risk. Regulatory bodies such as the FCA and the Bank of England are actively examining AI’s role in financial services, with a focus on transparency, accountability, and risk management, to provide further guidance on AI implementation in specialist lending. The FCA is conducting ongoing research into AI deployment in UK markets, assessing its impact on decision-making processes, affordability assessments, and compliance monitoring. As AI adoption grows, regulatory guidance is expected to evolve, particularly in areas such as operational resilience, third-party AI risks, and model explainability. Despite AI’s growing capabilities, human oversight remains essential. UK Finance highlights that most AI applications in lending require active human involvement to ensure ethical use, data accuracy and regulatory compliance. Issues such as implementation costs, data security and maintaining accuracy remain key considerations for lenders adopting AI solutions.

“AI IS NO LONGER JUST AN ADVANTAGE—IT IS A NECESSITY FOR LENDERS AND INTERMEDIARIES AIMING TO FROM ADVANTAGE TO ESSENTIAL REMAIN COMPETITIVE IN THE FASTEVOLVING WORLD OF SPECIALIST FINANCE”

The opportunities AI presents in specialist lending far outweigh the difficulties. AI-powered loan management solutions, such as Hypercore’s, redefine how lenders collect, analyse and use borrower data—driving efficiency, accuracy and compliance throughout the lending lifecycle. For UK bridging and commercial lenders, the message is clear: the future of borrower data management is AI-driven. By embracing these technologies now, lenders can eliminate operational inefficiencies and position themselves for long-term success in an increasingly digital landscape. AI is no longer just an advantage—it is a necessity for lenders and intermediaries aiming to remain competitive in the fast-evolving world of specialist finance.

Bridging & Commercial

low

fruit for brokers Words by

JOSH KNIGHT

Sales and marketing director at Octane Capital Photography by

FELICITY LASS

Josh Knight

Exclusive

Turbulence in the mainstream market is creating opportunities in the specialist space DEVELOPERS UNDER PRESSURE Property developers will be feeling the strain of a marked slowdown in sales pace over recent years. According to Zoopla, the average time it took to sell a property in 2024 (from instruction of an agent to completion of the sale) was 185 days—a 16% increase from 2023. While delays in conveyancing and mortgage approvals will have played their part, the main driver is faltering demand. With mortgage rates relatively high, some prospective buyers will be adopting a waitand-see approach and, for as long as this inertia exists, developers will have a smaller pool of buyers to market their new-build units to. Consequently, an increasing number of developers will feel they do not have enough time to market and sell their units before their development facilities conclude. A developer exit loan can provide a timely solution, affording the developer breathing space to sell their units and, crucially, achieving their desired price points, without pressure from their development lender. Developers will also be grappling with spiraling construction costs. According to the Building Cost Information Service, build costs have risen by over 20% since 2020 and are set to increase by 17% over the next five years. This will have eroded both developers’ profit margins—as well as resources, such as the capital from the developer required to complete a build. Some developers will need extra funds to finish a development before their properties can be brought to market, and if their existing lender is unable or unwilling to provide further funding, they could find themselves at an impasse. A developer exit loan could be the answer. Lenders may be willing to complete before a site reaches practical completion or provide drawdowns to cover residual build costs. For opportunistic developers, a developer exit loan can also aid liquidity. Often, a loan of this type will release equity—whether day-one, on completion of the loan and/or by way of split sales proceeds as units are sold—which would allow developers to channel funds into other sites.

mid the market challenges, we have identified two high-growth bridging areas that could be fruitful for brokers this year. While three reductions in the Bank of England base rate were welcome improvements, broader economic headwinds mean the benefit of this is yet to be fully felt by investors and homebuyers. Inflation is still to be brought under control, gilt yields are soaring and swap rates continue to prove unstable. Swap rate volatility, in particular, has caused a pricing headache for most fixed-rate lenders, meaning that both BTL and residential mortgage rates haven’t reduced at the rate many would have hoped. In light of this economic landscape, we see two borrower profiles that present a significant opportunity for brokers.

Bridging & Commercial

“A broker can add significant value through their lender relationships and by structuring a loan in a way that addresses the developer’s particular needs”

“Our research shows that 66% of landlords reduced the size of their portfolio between September 2023 and 2024, with 21% anticipating doing the same in 2025”

Exclusive

While developers may be au fait with traditional development finance and even hold direct relationships with lenders in some cases, for many, the concept of a developer exit loan will be a novel one. A broker can add significant value through their lender relationships and by structuring a loan in a way that addresses the developer’s particular needs, depending on which of the above concerns apply. This profile of borrower represents a meaningful opportunity for both brokers and lenders. And, with Octane’s average developer exit loan size for 2024 standing at over £2m, it could be a lucrative one.

return, such as HMOs, serviced accommodation, holiday lets and semi-commercial properties. Often, an investor will look to refurbish and/or change the use of a property in their pursuit of these increased returns and herein lies the opportunity. Over 54% of Octane’s completions in 2024 were refurbishment loans to help investors make improvements to property, with the most funded type of case being house-to-HMO conversions. Since 2022, we have noticed a significant increase in enquiries on behalf of borrowers who are established landlords but have limited development experience, which points to an overarching trend where investors are becoming more adventurous. Borrowers with this profile are perhaps in the greatest need of broker support. These clients will need advice on how to structure the debt stack, build a professional team to support their project, navigate investor involvement and present their case in the most favourable light to lenders. Moreover, once a client has completed on a refurbishment bridge, the broker has an opportunity to advise on the BTL remortgage once the build works have concluded. A remortgage against the GDV will likely release equity, which the borrower can put towards their next project, and the cycle can repeat itself. One deal could spawn multiple fee opportunities for a broker as they help the client to scale their portfolio.

FRUSTRATED LANDLORDS The aforementioned economic factors will also be affecting the private rental market. While the average BTL mortgage rate reduced last year (from 5.47% in 2023 to 4.53% in 2024), swap rate volatility has caused a degree of uncertainty. In fact, the average BTL rate increased between the Autumn Budget and the end of 2024. Indeed, the picture has improved since the turn of the year, but the returns BTL investors had become accustomed to in the decade prior to Liz Truss’s disastrous mini-Budget are simply no longer attainable. If we combine toppy rates with climbing running costs, impending EPC and Awaab’s Law requirements and a swathe of legislative change, it’s easy to see why so many landlords are feeling perturbed. Our research shows that 66% of landlords reduced the size of their portfolio between September 2023 and 2024, with 21% anticipating doing the same in 2025, highlighting the scale of the issue. That said, while some landlords are exercising caution, many are still transacting, albeit with a different strategy. Single-tenancy properties are unlikely to deliver the desired yield for investors who need to borrow at higher LTVs, which will drive some to turn their attention to asset classes that can deliver a better

TANGIBLE ISSUES ADDRESSED Bridging has long been used to solve problems. But now, more so than ever, it can play a vital role in helping investors and developers to stay agile. In both of the borrower profiles identified, there is a tangible problem to be solved and significant opportunities for brokers to add value.

Mar/Apr 2025

Advertorial

Maintain and Successfully navigating the evolving specialist property finance sector

WHAT ARE THE LATEST TRENDS AFFECTING OUR SECTOR?

WHAT ARE YOUR CURRENT GROWTH AREAS?

WHAT GROWTH OPPORTUNITIES DO YOU FORESEE IN THE FUTURE?

Andrew Lazare

Andrew

With the ongoing appeal of ‘the right property developer’ working on the 'right project’ being able to make significant returns, the market continues to attract an increasing number of entrepreneurs. However, it is the very definition of the right project that is evolving to reflect the changing property landscape.

Our motto is ‘maintain and grow’, as we successfully navigate this evolving specialist property finance sector. Analysis of the UK bridging market trends and data informs us that the sector continues to grow, a sentiment that is reflected in Mint Property Finance recording its biggest-ever January and February on record at the start of this year. That said, as the requirement to add value to properties, navigate legislation, and progress more, smaller projects become the new normal, there is an increasing requirement for us to further strengthen the key facets of our business. Firstly, it’s imperative that Mint maintains the long-standing high performance of its loan book and that we grow it safely with only the right loans, not just any loan. The minimisation of extensions, renewals, and defaults is of paramount importance to us, which is why we give all borrowers, brokers, and professional introducers direct access to our underwriters. Without this, cases cannot be fully assessed, and challenges will arise. Secondly, we need to maintain our structure and grow our team in the right areas. It’s only by retaining the incredible talent we have nurtured here at Mint and attracting new superstars to our business that we can sleep easily in our beds knowing that our borrowers and investors are protected. Our team are our safety net, and I couldn’t be prouder of the sterling work they do in increasingly challenging circumstances. Finally, we need to maintain the incredible partnerships we have in place with our borrowers, brokers, professional introducers, solicitors, valuers, project monitoring surveyors and asset managers, as well as grow our collective experience as we move into an increasingly innovative market. As Adam and Sam both observed, the days of straightforward bridging and development finance are gone. We need to collectively leverage our partnerships to ensure we are at the forefront of the market as we seek to successfully fund ever more innovative, inventive and inspired projects across the UK.

MANAGING DIRECTOR The latest legislation continues to change the investment landscape for individuals trying to earn an income through property. BTL as an asset class is becoming more difficult, as ‘passive’ monthly returns get slimmer. Thus, the majority of successful BTL landlords that we engage with now have to resort to adding value to properties through refurbishments and extensions to generate financial returns. Adding to this challenging property investment landscape is a headwind of potential non-compliance, where HMOs are concerned. With changing legislation around room sizes and kitchen location, many landlords are facing the very real threat of not having their licences renewed. For older properties, landlords will face the renovation expense and void rental periods associated with returning larger houses to traditional, residential demises. The third challenge facing those developers working on potential ground-up apartments and houses, is the increasing trend by local planning teams towards the assignment of local occupancy restrictions. The unforeseen, negative consequences of this mean that residents ultimately live in less desirable residential properties built on compromised sites, too small and not finished to a satisfactory specification, as developers seek to reduce costs.

Adam Robson

HEAD OF KEY ACCOUNTS There is still plenty of oppor tunity in the current market, and this will continue to be the case, but there is now a requirement for property investors to be more innovative in their approach. Gone are the days of BMV purchases using straightforward bridging loans delivering significant returns. Instead, we’re seeing an increasing volume of enquiries for smaller loan amounts, more frequently involving property refurbishment before rental or sale. Adding value through investment seems to be increasingly the norm in a market where renters are demanding more for their increased monthly rent, and sale values still haven’t yet returned to previous norms in certain areas.

Sam Herd

HEAD OF CREDIT The trend towards an increasing vol ume of smaller loans extends into the ground-up development sector. We’re seeing more enquiries with a comparatively smaller number of apartments and houses, with lower exit sale prices, only in areas where demand is almost guaranteed. Garden plot developments are seeing a resurgence in popularity as developers look to minimise their risk exposure.

Bridging & Commercial

d grow:

Advertorial

It’s hard to deny that the past two years have been challenging for the property finance sector and that recent legislative changes have made it more difficult for first-time and seasoned developers to generate returns. We spoke to the senior team at the award-winning lender, Mint Property Finance, to better understand the latest sector trends and where future growth opportunities lie

Andrew Lazare

MANAGING DIRECTOR

Mar/Apr 2025

Direct access to a mandated Underwriter. At Mint Property Finance we do things differently. We offer you direct access to a highly experienced and knowledgeable mandated Underwriter who is empowered to make informed decisions.

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Explained

Breathing Space

more scope for moratorium debt challenge

A recent High Court verdict provides much-needed clarity in relation to the Breathing Space Regulations and confirms the court’s jurisdiction to review a debt adviser’s decision

his is the first appeal decision of the High Court on the complex and far-reaching Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020. Perhaps reflecting the labyrinthine nature of the regulations, the appeal was listed for a two-day hearing. A third day then had to be found to deal with further points about the interpretation of the regulations that could not be resolved in the two days available. The appeal was from the decision of Her Honour Judge Baucher, made at a hearing on 4th January 2024. The Breathing Space Regulations allow a debtor to obtain the benefit of a moratorium in respect of all their debts that are not exempted under the regulations. They give debt advice providers various functions in relation to this process, including the power to determine, as a matter of law, which debts are eligible to be included within a moratorium. The regulations allow lenders to challenge the decision of a debt advice provider within strict time limits and in accordance with a specific process set out in them. HHJ Baucher held that this was the only way to challenge a debt advice provider’s decision and that, if a lender missed the deadline for doing so, they were stuck with the decision regardless of whether the debt adviser had got the law right.

Words by

DAVID SMITH

Partner; and Neli Borisova, associate in the London property litigation team at JMW Solicitors; as well as Tom Morris, barrister at Landmark Chambers

Bridging & Commercial

Explained

That was the primary issue in Seculink v Forbes. On appeal, the High Court was asked to consider a number of important points for lenders, namely: 1. does the court always have jurisdiction to determine whether a debt is a moratorium debt, regardless of a debt adviser’s decision to include the debt in the moratorium? 2. is the only avenue for challenge through the review process set out in the regulations, so the court’s hands are tied if the lender misses the deadline? 3. is it an abuse of process for a lender to seek a court determination outside the regulatory procedure? 4. is the court’s permission required to allow live proceedings to continue when a moratorium commenced during the action? These questions are of huge importance to lenders. The borrower on the appeal argued that once a decision had been made by the debt advice provider and the deadline to challenge under the regulations had passed, the decision was final and could not be reviewed by the court. This would mean that debts which should never have been covered by the moratorium would nonetheless be included, without a lender being able to challenge an erroneous decision in court merely because of missing a relatively tight deadline to seek a review of a debt advice provider’s decision. The effect of HHJ Baucher’s decision was to heap further problems on top of the many difficulties the Breathing Space Regulations had already posed to lenders. For small lenders deprived of the right of enforcement, the effect might have been ruinous. So, it is good news for lenders that the borrower’s submissions were rejected and HHJ Baucher’s decision was overturned by Sir Anthony Mann in the High Court.

in is secured debt, so exempt from the regulations or arrears of secured debt and therefore within their scope. Lenders should look out for a further judgment on this point, which will conclusively determine the application of the regulations to secured debts—at least until the point is considered by the Court of Appeal in a different case later this year. This is a relatively new and complex area of law with huge commercial implications for lenders. Cases are only now reaching the higher courts as to how the regulations should be interpreted. The decisions will provide guidance and certainty to lenders. However, the drafting of the regulations is so complex that new difficulties will continue to be thrown up. Lenders would be well advised to respond proactively when given notice that a debt has been included in a moratorium and promptly engage with debt advice providers in the manner anticipated by the regulations. It is vital to take advice from specialist lawyers who are familiar with the scheme of the regulations and the developments in the case law they are generating. After some first-instance decisions by judges that are harsh to lenders, these appeals offer lenders some breathing space of their own.

The key points of his decision are: 1. the court must retain the jurisdiction to determine whether a debt is a moratorium debt, even after its inclusion in a moratorium by the debt advice provider 2. that is so even if the lender has failed to request a review and apply to court within the strict deadlines imposed by the regulations 3. seeking the court’s determination outside the regulations procedure is unlikely to be an abuse of process 4. the court’s permission is not required to allow live proceedings to continue up to the entry of judgment when a moratorium commenced during the action This is a welcome decision for lenders. It significantly widens the scope for challenging the erroneous inclusion in a moratorium of non-eligible debts, and spares lenders from inadvertently suffering the far-reaching effects of a moratorium. In Seculink v Forbes, a further hearing can now take place to consider whether the debt in question should be subject to the moratorium. The High Court will determine the more complex question of whether the capital part of a loan which has been called

Mar/Apr 2025

Explained

Technology: FROM A TOOL TO ESSENTIAL Words by

DALE JANNELS CEO at One Mortgage System

Bridging & Commercial

Explained

In an industry where every second counts and with rising demand for fast and flexible lending, lenders need efficient technology to expedite transactions while managing risks

he bridging finance sector has long been valued for its flexibility and ability to provide short-term funding, particularly for property investors, developers, landlords and homeowners needing quick access to capital. Yet it has key issues in the speed of execution. In a marketplace where every second counts, delays in processing applications, underwriting and case management can significantly impact borrowers, brokers and lenders alike. The latest data from One Mortgage System (OMS) and the Bridging Trends report, compiled by MT Finance, shows that technology is playing a pivotal role in improving transaction speeds, reducing bottlenecks and enhancing overall efficiency. These advancements are not only making bridging finance more competitive but also reinforcing its reliability as a financial solution in an increasingly fast-paced property market.

HOW TECHNOLOGY BOOSTS EFFICIENCY Technology is proving to be a critical driver in enhancing the speed, transparency and overall efficiency of bridging finance transactions. Several key developments are contributing to these improvements: • CRM integration and automated case transfers: a well-structured CRM system allows brokers and lenders to seamlessly transfer case data when a deal falls through with an original lender. Instead of having to restart the process from scratch, brokers can resubmit applications quickly, reducing delays and ensuring borrowers don’t experience unnecessary disruptions • API-driven application submissions: more sophisticated APIs (application programming interfaces) are enabling brokers to submit cases directly from their CRM into a lender’s system, eliminating manual data entry and expediting decision-making. This integration reduces processing times and improves data accuracy, making transactions smoother for all parties involved • Digital fee and compliance management: brokers are now leveraging digital fee management tools to track and collect fees within their CRM systems, ensuring compliance, accuracy and a structured financial record. By automating this process, administrative burdens are reduced and a transparent audit trail is maintained • Automated risk assessment and data-driven underwriting: the use of real-time risk assessment tools allows lenders to make quicker yet well-informed lending decisions without compromising due diligence. By analysing borrower data through automated underwriting systems, lenders can identify potential risks earlier and process applications more efficiently These innovations are reshaping the industry, providing brokers with the tools to operate more efficiently, lenders with the ability to deploy capital at scale and borrowers with a seamless experience that removes unnecessary delays.

AS SPEED RISES, SO DO EXPECTATIONS Bridging finance has evolved significantly over recent years, shifting from a niche solution for property investors to a widely used tool to meet a variety of financial needs. As the demand for fast and flexible lending solutions has grown, so too have expectations for efficient, technology-driven processes that can expedite transactions without compromising risk management. Borrowers now expect quicker access to funds, and brokers need efficient systems in place to ensure deals can be completed seamlessly. Similarly, lenders benefit from faster decision-making tools that allow them to deploy capital more effectively while maintaining strong compliance controls. As competition intensifies within the market, the ability to reduce completion times and provide a smooth process will set leading firms apart from those lagging behind.

Mar/Apr 2025

Explained

FASTER COMPLETION: WHAT THE DATA TELLS US The latest figures from both OMS’s internal data (derived from our packager/distributor customers who use the system) and the latest Bridging Trends report, highlight how bridging finance transactions are being completed more quickly than ever before, thanks in large part to technology adoption. According to our data, the average time from application to completion has fallen from 79 days in 2023 to just 57-and-ahalf days in 2024, a significant reduction of 27.21%, taking an average of 21-and-a-half fewer days per transaction. This improvement demonstrates the impact of automation, digital case management and CRM software integration—all of which are helping brokers and lenders process applications more efficiently and reduce friction in the approval process. Similarly, the Bridging Trends report for 2024 reveals that completion times fell from 58 days in 2023 to 47 days in 2024, a significant 23% drop. This reduction highlights the increasing maturity of the sector, with lenders and brokers streamlining processes as bridging finance becomes more mainstream. For borrowers, these faster completions mean fewer missed opportunities in time-sensitive property deals. Investors in particular benefit from quicker access to capital, as this allows them to move fast in competitive markets. Brokers can build stronger client relationships by offering a seamless process, while lenders can scale their lending more effectively, ensuring capital is put to work without unnecessary delays.

MORE INTEGRATION AND AI AHEAD The bridging finance sector is at a turning point where technology is no longer just a support tool—it is a key driver of industry success. As more lenders and brokers adopt automated workflows, CRM integration, and digital processing tools, the sector will continue to improve in speed and efficiency while maintaining its reputation for flexibility and tailored solutions. The data clearly shows that shorter completion times, strong lending volumes and a shift towards technology-driven processes are making bridging finance more accessible and efficient. This is not beneficial just for lenders and brokers; it directly impacts borrowers by removing delays, improving transparency and enhancing the overall borrowing experience. One area that is likely to see further growth is the development of AI in underwriting and risk management. AI-driven solutions could help lenders assess borrower profiles in real time, detect emerging market trends and enhance fraud detection, making bridging finance even more secure and responsive to borrower needs. Additionally, further enhancements in open banking integration and digital identity verification could streamline affordability assessments, reducing paperwork and enabling faster approvals without compromising regulatory requirements. As the market continues to evolve, those who embrace digital transformation will be best positioned to thrive. The ability to combine technology with strong relationships, expertise and tailored advice will ensure that bridging finance remains a fast, flexible and indispensable funding solution for years to come.

SUSTAINED EXPANSION, DIVERSE AREAS In addition to faster processing times, bridging has seen total gross lending reached £822.2m, just 1% below the record £831m in 2023, making it the second-highest volume since 2015. The average monthly interest rate edged up slightly to 0.88% from 0.86% last year, reflecting a measured adjustment to macroeconomic conditions. Notably, borrowing patterns have shifted, with auction purchases increasing from 7% to 11% of total loans, while chain-break financing dipped from 22% to 20%. Re-bridging transactions declined from 9% to 7%, suggesting greater market confidence and more borrowers successfully exiting their initial bridging loans. This data highlights the growing reliance on bridging finance for diverse funding needs, extending beyond traditional property acquisitions to refinancing, development finance and capital restructuring. The market’s sustained expansion despite external economic pressures highlights its ongoing resilience and adaptability, further cementing bridging finance as a crucial component of the lending landscape.

Bridging & Commercial

Cover Story

The 2025 UK Bridging Market Survey For the eighth consecutive year, Bridging and Commercial has collaborated with EY to disclose its exclusive annual UK Bridging Market Survey. The findings show the progression of the bridging industry over the past 12 months, highlighting the trends and challenges that shaped loan enquiries in the market. This year’s survey spotlights new topics such as AI implementation in businesses, tackling fraud initiatives—including market predictions for the next year Words by

DHUHA AL-ZAIDI

Illustration by

VALF

* This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Member firms of the global EY organisation cannot accept responsibility for loss to any person relying on this article. * The views reflected in this article are the views of the author and do not necessarily reflect the views of the global EY organisation or its member firms. 39

Mar/Apr 2025

Cover Story

Who took part? The survey had 33 respondents—31 lenders, one bridging software provider and one valuation panel manager. 39% of participants are based in London, while 30% are in the North, 15% in the South, 6% in Wales and 3% in the Midlands. 6% of respondents were from other areas. The business sizes varied, with 33% employing up to 10 people, and 24% between 11-20 and 50-plus employees each.

What the bridging market looked like in 2024 AVERAGE MONTHLY INTEREST RATE

0.75% to <1%

61% 56%

36%

1% to <1.25%

0.50% to <0.75%

AVERAGE LTV

AVERAGE LOAN TERM

50% to <60%

15 months to <18 months

60% to <70%

12 months to <15 months

70% to <80%

9 months to <12 months

80%

AVERAGE LOAN SIZE

50%

AVERAGE DAYS TAKEN TO COMPLETE

£800,000 or more £700,000 to <£800,000 £600,000 to <£700,000 £500,000 to <£600,000 £400,000 to <£500,000 £300,000 to <£400,000 £200,000 to <£300,000 £100,000 to <£200,000

60 days or more 55 days to <60 days 50 days to <55 days 45 days to <50 days 40 days to <45 days 35 days to < 40 days <35 days

Bridging & Commercial

25%

30%

Cover Story

ESTIMATED SIZE OF THE UK BRIDGING MARKET 12%

£7bn or more

AVERAGE MONTHLY COST OF ORIGINATION 2% or more

£1bn to <£3bn

<1%

22%

24%

1.5% to <2% 24% 22%

£3bn to <£5bn

£8bn to <£9bn 13%

£7bn to <£8bn

12%

19%

£15bn to <£7bn 45%

1% to <1.5%

AVERAGE MONTHLY DEFAULT INTEREST RATES (APPLIED TO LOANS THAT GO OVER TERM) 3%<4%

PROPORTION OF REGULATED LOANS 70% <90%

<1% 50% <70%

40%

11%

90% or more 6%

<10%

1%<2% 29%

30% <50%

10% <30%

25%

2%<3% 48%

The number of bridging lender respondents lending over £100m per year has dropped by almost 3% to

43%

compared to 46% last year

57% 76%

of lenders have loan books of £100m or less, up from 54% last year

of businesses reported an increase in profitability in 2024, up from 67% in 2023

Mar/Apr 2025

Cover Story

Funding models Principally funded (or own debt fund) Retail deposits

Other types of institutional funding

7% 33%

Forward flow arrangements/ correspondent lending programmes

Mix of various funding sources

Senior and mezzanine (wholesale facilities)

17%

27%

HNW, Private and family office money

Other significant highlights from the past 12 months 72% of lenders who responded cited average extension fee rate to have been between 1-3% · Refurbishment remains the most popular use of a bridging loan, followed by business purpose · Pre-development purchase continues to be the least popular reason to obtain a bridging loan · Independent brokers remained the primary channel for bridging loan originations, followed by master brokers

73%

cited an increase in institutional funding as a trend seen in 2024, compared to in 2023

46%

Speed of execution, relationship management and funding flexibility were the top three most important qualities to a customer (or broker) when choosing a bridging lender · Strong origination capabilities remains as the most important capability for a lender to stay successful—followed by strong relationships with brokers, both, cited by over 70% of lenders · 22% of lenders introduced variable rates in 2024, compared to 33% last year

Bridging & Commercial

Cover Story

Competition

70% Over the past 12 months,

of respondents viewed competition as one of the top trends in the UK Bridging Finance market. We have seen competition in the bridging market intensify, driven by new entrants seeking to build market share in an attractive, high-yielding asset class.

Broker Relationship

72% 55%

of respondents consider a strong relationship with brokers as a key success factor. This is a testament to the enduring importance of strong broker/lender relationships to the bridging market.

Implementation of AI

This year’s survey signalled a significant rise in the anticipated adoption of AI, with

of respondents intending to introduce AI in credit decisionmaking over the next 12 to 24 months. We have seen AI adoption rapidly move up the agenda in Financial Services, and the bridging sector is starting to anticipate the change.

Mar/Apr 2025

Cover Story

Trends over the next 12 months

82%

of participants expect the average monthly interest rate on loans to decrease

67% 64%

34%

of lenders predict competition to increase, with 36% citing it as their biggest challenge for 2025

are considering to raise or refinance debt capital over the next 12 months, while 46% are looking to raise equity capital

of respondents noted the ability to access flexible and efficient debt funding sources as the second biggest business challenge

72%

of lenders think maintaining strong relationships with brokers is the most important element to remain successful in the bridging market

67% 36%

Macroeconomic uncertainty, competition, and an increase in defaults are named as the

Market growth, based on the annual origination volume, is expected to increase according to

of firms will be implementing an ESG strategy over the next year, compared to 74% last year

73%

TOP THREE CHALLENGES FOR 2025

of respondents

Bridging & Commercial

of lenders anticipate an increase in the cost of origination—an increase from 49% in 2024

“72% of respondents consider strong relationships with brokers a key factor in a bridging lender’s success. This is reflective of broker and lender relationships continuing to be critical in driving both lending volumes and rapid decisions for customers” Alex Araujo Partner at Ernst & Young LLP, UKFS Specialty Finance Strategy & Transactions

“This survey signalled a significant rise in the planned adoption of AI, with half of respondents planning to implement AI in their business strategy in the next 12 months. The financial services sector as a whole is increasingly integrating AI into operations, and the bridging market is becoming focused on how these new technologies can drive efficiencies” Alex Araujo Partner at Ernst & Young LLP, UKFS Specialty Finance Strategy & Transactions

Cover Story

Technology plans over the next 12 months

50%

of firms are considering implementing AI in their business strategy

70%

63% 67%

33%

are considering investment in technology—a decrease from 80% last year

believe that the automated loan management systems that allow live data to be accurately extracted at the click of a button is a key differentiating factor among lenders

of lenders plan to invest in AML systems

46%

of respondents are using electronic signatures for legal documents—an increase from last year’s 56%

of firms are currently using AVM technology, with 33% reporting no plans to implement this

24%

of lenders intend to use AI as part of their credit decision making in the next 12 months

Mar/Apr 2025

Cover Story

Impact of 2025 macro-outlook

39%

of respondents believe that the 2025 macrooutlook will impact the bridging finance market moderately in a negative way

52% 47%

20%

predict borrower default rates will go up slightly in 2025

of lenders expect redemptions by refinance will slightly increase

expect competition to significantly increase—up from 8% last year

71%

52%

61%

expect average loan size to remain unchanged in 2025

36%

expect a slight rise in forebearance requests and 42% predict a slight rise in foreclosures over the next 12 months

The extension fee rate is expected to stand at an average of 1-2%, according to

Bridging & Commercial

believe origination volumes will go up either slightly or significantly this year

expect loan extensions to slightly increase

59% 48

of respondents

“Over the past 12 months, 70% of respondents viewed competition as one of the top trends in the UK bridging finance market. Competition in the bridging market is continuing to intensify as new entrants seek to build market share in a high yielding asset class” Alex Araujo Partner at Ernst & Young LLP, UKFS Specialty Finance Strategy & Transactions

Zeitgeist

S SK T, RI N D E TA EE N S TH DI -SP TIO F H A O IG U H AL V

P TO SK DE

DA NG E

Desktop valuations speed up deals and cost less than traditional approaches. However, the desire for speed can overshadow risks, which go far beyond building defects being missed and pose major issues for borrower, lender and broker

Bridging & Commercial

Words by

LEWIS CASSERLEY

Co-founder and principal at Albatross Lending

Zeitgeist

he world of bridging f inance has evolved rapidly in recent years, and an increasing demand for fast and flexible funding solutions has meant practices to speed up transactions—such as desktop valuations—have been welcomed. Desktop valuations involve property appraisals conducted remotely, relying on data and automated valuation models (AVMs) rather than traditional physical inspections. This method is faster and less costly, which makes it appealing for brokers and lenders seeking speed

Whether it is through refinancing or the sale of the property, a clear exit plan is essential to avoid leaving the borrower in a vulnerable position”

in their transactions. For borrowers, high LTVs—as high as 75%—are particularly attractive, as they allow access to significant capital with minimal upfront costs— which is especially useful in times of financial uncertainty. While this approach may appear more efficient, it is becoming routine in far too many cases and, consequently, raising concerns about long-term issues for both borrowers and the lending industry as a whole. A high LTV against a desktop—which has a high possibility of being incorrect—may force borrowers and lenders into a position whereby it is impossible to successfully exit a loan. At Albatross, we offer loans with just a desktop valuation, but we do so with careful consideration of the associated risks. Our credit team recently analysed the state of the market using data from Hometrack—a property data and risk software—and the statistics were concerning. Average LTVs across lenders' books are exceeding 75%, relying solely on AVMs to assess property values. This is particularly risky in the current economic climate, where property values may fluctuate rapidly and market conditions are uncertain. Brokers play a key role in the decision to lend on the back of desktop valuations. While securing a deal may be the immediate priority, brokers must also ensure the sustainability of the loan. They should be aware of the potential risks borrowers face when taking on high LTV loans based on desktop valuations and ensure that the borrower has a clear, feasible exit strategy. Whether it is through refinancing or the sale of the property, a clear exit plan is essential to avoid leaving the borrower in a vulnerable position. 51

Mar/Apr 2025

Zeitgeist

PROBLEMS OVERLOOKED The trend toward high LTV deals using desktop valuations carries inherent risks. The most concerning is the potential for borrowers to overleverage themselves, taking on more debt than they can reasonably repay. While 75% LTV might seem manageable, desktop valuations fail to account for the true condition of the property or any potential issues that could affect its value. Without a physical inspection, there is no way of identifying problems such as structural issues, damp or other significant defects that could substantially reduce the market value of the property. In reality, the LTV for these loans could be much higher than 75%, as the valuation is based purely on data without regard to the property's actual state. This poses a risk of borrowers being trapped in loans where their debt exceeds the value of their property.

DEFAULT AND BAD DEBT Borrowers may end up borrowing more than their property is worth, creating an unstable financial position that could easily lead to negative equity—particularly if the market shifts or the building has hidden or overlooked problems—which could exacerbate the risk of default. The financial strain of high LTVs becomes even more problematic when you factor in the aggressive interest rates and hefty default fees charged by some lenders. In the event of default, borrowers can be burdened with exorbitant fees that make it even harder to recover financially. This situation could easily lead to a cascade of bad debts, particularly in a volatile market. For many borrowers, this creates a vicious cycle. For example, if they default, they could struggle to refinance—leaving them vulnerable to aggressive recovery processes and further financial damage.

Brokers need to be careful in selecting lenders that are not focused just on quickly closing deals, but are financially stable and able to manage their risks over the long-term” Bridging & Commercial

FLY-BY-NIGHT LENDERS In addition to the risks posed by high LTVs and desktop valuations, brokers and borrowers should also consider the stability of the lenders they choose. Many lenders in the bridging finance market are transient—they come and go without warning. Brokers need to be careful in selecting lenders that are not focused just on quickly closing deals, but are financially stable and able to manage their risks over the long-term. Lenders with little longevity may offer attractive loan terms upfront but lack the infrastructure or capital to work with borrowers throughout the loan term, particularly if difficulties arise. Brokers must ensure that they partner with lenders who can weather the storm, even in tough market conditions. It’s essential to work with lenders that have the longevity, capital and experience to manage risks throughout the loan term and are committed to helping borrowers achieve a successful exit strategy. A lender that is good at securing loans, but not equipped to support borrowers in the long-term could, ultimately, leave both the borrower and broker in a vulnerable position. The pressure to close deals quickly should not overshadow the need for responsible, sustainable lending practices. Brokers, lenders and borrowers must remain vigilant, ensuring that loans are structured in a way that protects all parties and that clear exit strategies are in place to prevent financial hardship down the line. 52

From first-time to experienced landlords, Together is here to help your clients build and diversify their Buy to Let portfolios. Whether they’re considering HMOs, holiday lets, student housing or leveraging existing equity, we offer flexible first and second charge Buy to Let mortgages.

Find out more and download our product guide

With a common-sense approach to lending we accept: • Multiple and projected income • Top-slicing • No maximum age if self-funded • Unlimited number of properties • Unlimited number of rooms in a HMO • Multi-unit blocks up to 10 units Broad product range | Flexible criteria | Relationship-led service | Common-sense approach to assessing affordability

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Bridging that is truly Black & White... When choosing a lender, make sure you consider the full facility costs, which can be hidden in many guises. We don’t charge admin, application or upfront fees, and when combined with our market-leading rates from 0.69%, it mean’s we’re confident our pricing won’t be beaten. Our name makes sense now, doesn’t it?

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COULD YOUR CLIENTS BENEFIT FROM A

REFURBISHMENT LOAN? Ideal for clients looking to renovate, our offering can take them further, acting as a tool for EPC improvements, so they can stay ahead of potential regulations and property price changes. Up to 65% LTV. Total borrowing up to 70% GDV

Light refurbishment works only

Ability to convert to a long-term loan

No valuation fee payable until loan is approved

Interest roll-up options available

Available for HMOs or MUBs

We offer all our customers the ability to convert their refurbishment loan into a term loan. loan

Let’s talk.

Scan to see full details of our refurbishment loans. 0344 225 3939

borrow@ccbank.co.uk

ccbank.co.uk/refurbbc

For intermediary use only. Cambridge & Counties Bank Limited. Registered office: Charnwood Court, 5B New Walk, Leicester LE1 6TE United Kingdom. Registered number 07972522. Registered in England and Wales. We are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register No: 579415

Interview

BETTER BY ASSOCIATION A membership body protects and advocates for your interests and those of the industry, says Vic Jannels, CEO at the Bridging & Development Lenders Association. He talks to us about the recent spike in bridging lending, new moves to tackle fraud, and a troubling regulatory proposal

Words by

VIC JANNELS CEO at the Bridging & Development Lenders Association

Bridging & Commercial

Vic Jannels

Interview

A key element of the underwriting process is fraud prevention, and this has been a major focus for the BDLA. What initiatives are in place to tackle this issue? Fraud is an ever-evolving threat that can cause significant financial and reputational harm to lenders and borrowers alike. The BDLA has made tackling fraud a key priority for 2025, following the success of our first dedicated fraud prevention workshop last year. We are now working on the development of an early warning fraud intelligence-sharing system tailored to the short-term lending market. This initiative is aimed at helping lenders identify fraudulent applications before they progress to formal underwriting. Importantly, this system will comply with GDPR and data protection regulations to ensure secure information sharing among members. BDLA members already benefit from access to established fraud detection tools such as National Hunter, National SIRA, Nivo, and Synectics, and we continue to promote the adoption of these technologies at the application stage. We are also keen to explore partnerships and technologies to deliver red-flag indicators that lenders can use to identify fraudulent activity in its early stages. How is the BDLA working with regulators to ensure fair oversight? Regulation is always a key topic in financial services, and we are committed to ensuring that bridging lenders are fairly represented with all relevant regulators and policymakers. The BDLA engages directly with policymakers at HM Treasury and the FCA to provide industry insights and ensure that regulations reflect the realities of bridging finance. One of our major concerns currently is the FCA’s CP24/2 consultation paper, which proposes publicly naming firms under investigation before any wrongdoing is proven. This could be highly damaging for businesses, as even baseless allegations could result in significant reputational harm. We continue to look to work alongside other trade bodies to challenge this proposal and ensure that any regulatory developments are balanced and appropriate for the short-term lending sector. Another critical area is ensuring that regulation supports growth rather than stifles innovation. Bridging finance is inherently different from traditional mortgage lending, and a one-size-fits-all approach could create unnecessary barriers for lenders and borrowers. We will continue to advocate for proportionate regulations that support responsible lending while allowing the industry to thrive.

The bridging sector has seen tremendous growth in the past year. What key trends are driving this? The bridging sector has seen unprecedented and sustained growth in recent years, as demonstrated by the BDLA’s latest data. In Q4 2024 alone, bridging completions surged to a record-breaking £2.3bn, marking a 28.6% increase from the previous quarter, while loan books exceeded £10bn for the first time. It’s a testament to the increasing demand for short-term finance and the growing trust among brokers and borrowers in this space. One of the biggest drivers of growth is the versatility of bridging loans. Investors and property developers are increasingly relying on bridging finance to complete time-sensitive transactions, fund refurbishments, and support development projects. The flexibility offered by bridging loans also makes them an attractive alternative to traditional finance when it comes to business investment. For homeowners, regulated bridging continues to prove to be a vital tool in helping to save chains and keep the property market moving. It's previously been said that bridging provides finance to cover a transitional period of uncertainty. I think we can all agree that there’s a great deal of uncertainty in the economy and the world in general at the moment, and more people are turning to bridging to help fund their objectives. Another factor is the rising confidence from institutional investors. At the BDLA annual conference last year, industry leaders from major financial institutions, including Quilam Capital; JP Morgan; Lloyds Banking Group; and Shawbrook Bank, highlighted the growing appetite for investment in the bridging sector. They also stressed the importance of strong underwriting, responsible lending practices, and data-driven decision-making to maintain long-term sustainability.

Bridging & Commercial

How does this translate into real-world impact for members and borrowers? Responsible lending is at the heart of everything we do. Our code of conduct sets clear standards for fairness, transparency and ethical lending practices. BDLA members must adhere to these principles, ensuring that customers receive clear information about loan terms, fees, and risks. We also encourage lenders to complete the Certified Practitioner in Specialist Property Finance qualification, which equips them with the knowledge and expertise to provide the best possible service to 58

“We will continue to advocate for proportionate regulations that support responsible lending while allowing the industry to thrive”

“Collaboration will be key in 2025. Whether it’s tackling fraud, improving lending standards, or engaging with regulators, working together will ensure that the sector remains resilient and continues to grow”

Interview

borrowers. More advisers are expected to complete this programme in 2025, further raising industry standards. Sustainability is another key area of focus. With increasing pressure to improve the environmental credentials of properties, bridging finance plays a crucial role in funding energy-efficient refurbishments and conversions. We are working with members to encourage responsible lending that aligns with sustainability goals.

Lending suited to property finance needs.

What are the benefits of BDLA membership, and why should lenders join? BDLA membership offers a wide range of benefits, including access to industry-leading fraud prevention tools, regulatory representation, and exclusive market insights. Our networking events and workshops provide invaluable opportunities for lenders to connect with brokers, legal professionals, and other stakeholders. We also offer members the chance to contribute to our market research initiatives, helping to shape industry trends and best practices. Another key benefit is our advocacy work. By joining the BDLA, lenders become part of a collective voice that is actively engaged with regulators and policymakers. This ensures that the interests of the short-term lending sector are properly represented in decision-making processes. What does 2025 look like for bridging finance, and what are the BDLA’s key priorities? The outlook for 2025 is incredibly positive. We anticipate continued growth in lending volumes, driven by demand for development finance, refurbishment projects, and investment in property conversions. Fraud prevention will remain a top priority, with our early warning system set to play a pivotal role in safeguarding the industry. We will also continue working with regulators to shape fair policies and advocating for responsible lending standards across the sector. Additionally, we expect the trend of institutional investment in bridging finance to continue, further strengthening the industry. Maintaining strong underwriting standards and responsible lending practices will be crucial to sustaining long-term growth. At the BDLA, we are working on opportunities to bring together institutional banking contacts with our lender members. While still in its early stages, this initiative will provide a platform for lenders to explore further growth.

THE ALTERNATIVE OVERDRAFT

With the Alternative Overdraft, clients can draw down, repay and redraw funds whenever they need them. Perfect for auction purchases, refinancing, working capital and more!

Any final thoughts for brokers and lenders? The bridging finance industry has never been stronger, and the BDLA is committed to ensuring that it continues to thrive. Our sector plays a vital role in the UK property market, offering essential funding solutions that help investors, developers, and homeowners achieve their goals. Collaboration will be key in 2025. Whether it’s tackling fraud, improving lending standards, or engaging with regulators, working together will ensure that the sector remains resilient and continues to grow. For lenders who aren’t yet part of the BDLA, I strongly encourage you to join us. By coming together as an industry, we can build a stronger, more transparent and more secure future for bridging and development finance.

Mar/Apr 2025

y h W

s i g br a nd i n

na l

p er so

t p o no longer Rosalia Lazzara-Tilley

How to Guide

Words by

ROSALIA LAZZARA-TILLEY

CEO and founder of Manuka Media Photography by

ALEXANDER CHAI Jump on social media and you can show your true colours, both professionally and as an individual. Personal branding brings the human touch to your business, creating trust and boosting your reputation

n today’s digital world, your personal brand is your business card and social media is your handshake, your shop window and your stage—all in one. Visibility is considered the new currency. As the saying goes, out of sight, out of mind. The more visible you are, the more valuable you become. Why is that? Because visibility is the key to getting noticed, attracting opportunities, connecting with your clients and building a reputation that lasts. But why would you want a personal brand if you have a business, I hear you say? Most financial advisers, banks, lenders and other providers in the finance industry want to grow their business brands and leave their face out of it. But do you believe people buy from people they know, like and trust? So, if I can’t see you, connect with you and build rapport with you, then how can I trust you and buy from you? Now more than ever, particularly with the AI takeover, being the face of your own brand is the most original thing you can do. Nobody can copy that. In a world filled with imitation and automation, being human is your superpower. Your clients, colleagues, future partners, investors and suppliers want to see the person behind the business—the one they’re considering working with. If you have little to no online presence, potential clients are likely to overlook you entirely or lose interest due to a lack of information about you and your services. Instead, they’ll turn to

a competitor who is more visible, credible and engaging online. Also, the power of a personal brand has proven to us that time and time again, people are more memorable than logos. Take Richard Branson, Steven Bartlett, Deborah Meaden, Karren Brady and Elon Musk. Their words, actions and missions move people. The brands they’ve built are powerful, but it’s them—their personalities, stories and values—that make them unforgettable. People connect with people, not just logos. When you put yourself at the forefront of your brand, you create trust, loyalty and a lasting impact that no corporate identity alone can achieve. Imagine building your business with the influence and visibility that Steven Bartlett, Karren Brady and Richard Branson have. That is available to you. Social media is free to use and available 24/7, providing an open platform for everyone. It levels the playing field where the best content reaches the finishing line first. It’s no longer just celebrities who capture the spotlight. Now, anyone with valuable content and the right approach can make an impact. Businesses can be sold. Logos can be rebranded and changed. Businesses can go bust. But your face and reputation—your personal brand—can last a lifetime. If you're ready to dive into the rest of this guide, I’ll share must-know insights on how you can build both yourself and your business through a powerful personal brand. Hopefully, you’ll learn why building your personal brand isn’t just about being visible, but about driving business growth, generating more leads and, ultimately, increasing your revenue.

In a world filled with imitation and automation, being human is your superpower”

Mar/Apr 2025

How to Guide

A PERSONAL TOUCH IN BUSINESS Let’s break it down: business branding is the face of your company—the logo, the message, the identity you put out there. It’s how you define your business to the world. Personal branding, on the other hand, is all about you. It's the person behind the business, the reputation you build and the trust you create with your audience. It’s the story, the voice and the face that people connect with. True magic happens when you combine personal branding with business branding. You create a connection that goes beyond just a product or service; you bring your business to life by making it human, relatable and memorable. Think about it—people trust people, not just logos. Take Just Eat’s collaboration with Snoop Dogg and Katy Perry—it was pure genius. By pairing their iconic personalities with the brand, Just Eat didn’t just sell food; they sold the idea of having fun, being entertained and connecting with something bigger. Those celebrities didn’t just endorse the brand; they made the brand feel like part of the audience’s lifestyle. Then there’s Nespresso, where George Clooney’s suave, sophisticated vibe became the face of the brand. It's not just about coffee—it’s about the lifestyle he represents. Every time you see him in a Nespresso ad, it’s less about the product itself and more about the experience, the luxury and the association with a world-class personality. It’s Clooney’s personal brand that makes us want to sip that espresso with a touch of elegance. When you inject personal branding into your business, you create more than just a transaction; you create an experience. People don’t just want to buy from a faceless company—they want to connect with the person behind it. They want to believe in you, your story and the values you represent. So, if you’re looking to take your business to the next level, blending your personal brand with your business brand is the winning formula. When they work in harmony, you build trust, loyalty and an authentic connection with your audience that no corporate logo can replicate.

When you inject personal branding into your business, you create more than just a transaction; you create an experience”

BUILDING THE F O U N D AT I O N S To build a powerful personal brand, start with these three key elements: clarity on your audience; your niche and unique angle; and optimising your profile. Clarity on your audience: who are you speaking to? Before you begin creating content, it’s crucial to know who you’re speaking to. Are you targeting clients, introducers or industry peers? Tailor your content to each group’s needs. For clients, focus on providing value and building trust. For introducers, highlight your professionalism and results. For peers, share industry insights and engage in meaningful discussions. Your niche and unique angle: why should people follow you? What makes you stand out? What are your expertise, personality and values? Your audience will follow you because you offer something unique. Be authentic, show your personality and consistently deliver value. Optimising your profile: LinkedIn bio, professional profile picture and banner Once you’ve defined your brand, optimise your LinkedIn bio to reflect your expertise and include a clear call to action. For example, you can use a professional profile picture that conveys credibility and approachability. Don’t forget to customise your banner to reinforce your brand message and create a lasting impression.

Bridging & Commercial

How to Guide

W H AT C O N T E N T W O R K S ?

OVERCOME THE FEAR OF POSTING

We’ve all seen it: some people post only when they’ve had a deal completed, others share photos of their kids at school and some even tell us about what they ate for breakfast. There’s often a divide between those who feel personal posts are too much and those who share only business updates. It can feel like the line between personal and business is becoming blurred, and many worry that business posts are becoming irrelevant in today’s social media landscape. But how do you strike the right balance between showcasing your professional achievements while still being authentic and relatable? The answer lies in content variety. These are the types of content that work best to create a well-rounded and engaging personal brand: storytelling posts; educational content; behind the scenes; engagement posts; and case studies and testimonials. Storytelling posts Share real-life experiences, lessons learned and personal insights. Authentic stories build connections and show your values. Educational content Simplify complex financial topics. Help your audience understand industry concepts in a digestible and relatable way. Behind the scenes Give a peek into your day-to-day life, meetings, events and challenges. It humanises your brand and fosters deeper engagement. Engagement posts Encourage interaction with polls, questions and industry news. This creates dialogue and boosts engagement. Case studies and testimonials Share real results and client success stories to build trust and credibility. Your customers are the lead magnets to your next prospect. There is no better way than case studies and testimonials to build trust with your future clients.

Bridging & Commercial

Many people feel hesitant to post because they worry about nobody engaging or making a mistake by saying the wrong thing. The fear of posting is real, but here's the thing—consistency is far more important than perfection. Instead of focusing on the fear of making a mistake, make sure you show up regularly. Start by posting once a week and gradually increase your frequency as your confidence grows. The more you post, the easier it becomes. Also, don’t get obsessed over one post. Trust is built over time, not with a single piece of content. Instead, focus on creating long-term visibility and building your presence consistently, rather than chasing viral moments or one-hitwonder posts. It’s the overall picture that counts, and that’s where your success lies.

YOU’VE GOT THIS Identify your target audience, define your unique angle and optimise your social media profiles to reflect your values and expertise Once achieved, focus on sharing a variety of content—storytelling, educational posts, behind-the-scenes insights, engagement-driven content and real-life success stories—to build trust and engage with your audience Don't let fear hold you back from posting! Start small, post regularly, and remember that trust is built over time, not with a single post. Engage authentically with others, and always show up as yourself Focus on building relationships, providing value and showing your personality, rather than obsessing over promotional content. This balanced approach will help you grow your presence, attract more opportunities and build a reputation that lasts. Keep your eyes on the long-term goal—visibility and trust—and watch your personal brand flourish.

The key to growth True growth on social media comes from engagement and authenticity. It's not just about posting your own content— engage with others’ posts by commenting or sharing. Building relationships with your audience and peers is key to expanding your reach and credibility. Also, show up as yourself. Don’t just copy what others are doing. People want to connect with you—your personality, your values, your expertise. Authenticity is what attracts people, so make sure your posts reflect who you truly are. Finally, strike the right balance between promotional and value-driven content. While it’s tempting to constantly promote your services, remember that offering real value—whether it's advice, insights or resources— will build trust and keep people coming back for more.

Cut the Complex Short-term and flexible financing for your clients property projects. From Refurbishments to Regulated Bridging we have fast and flexible solutions. Bridging • Regulated and unregulated • Dual-representation: one solicitor for both parties saving time and money • Refurbishment Bridging up to 85% LTV • Covering auctions, house-flips and landlord refurbs • Light touch monitoring • Access to expert support, including Underwriters • AVMs

Simple. For everyone. For intermediaries only LendInvest plc is a public limited company registered in England and Wales (No. 8146929). Registered Office: 4-8 Maple Street, London, W1T 5HD. LendInvest Mortgages and LI Mortgages are registered trading names of LendInvest Loans Limited. LendInvest Loans Limited is authorised and regulated by the Financial Conduct Authority (FRN:737073). LendInvest Loans Limited is a company registered in England & Wales (Company No. 09971600) and is a wholly owned subsidiary of LendInvest plc. Regulated lending is provided via LendInvest Loans Limited (Company No. 09971600). Unregulated lending is provided by LendInvest BTL Limited (Company No. 10845703) and LendInvest Bridge Limited (Company No. 11651573), which are wholly owned subsidiaries of LendInvest plc. Borrowing through LendInvest and its affiliates involves entering into a mortgage contract secured against property. Your property may be repossessed if you do not repay your mortgage in full.

Cannes do

Experience

A trip to meet finance specialists attending MIPIM proved sociable, rewarding—and even a source of support

Words by

DHUHA AL-ZAIDI Photography by

DHUHA AL-ZAIDI / MANUKA MEDIA Bridging & Commercial

Experience

s I'm typing this, I'm sat on a small table in Pret a Manger in Nice Côte d'Azur Airport. More specifically, I'm sipping my iced oat latte and already reminiscing about the last couple of days in Cannes while MIPIM was taking place. My inner voice is chuckling and shaking its non-existent head—to think I was nervous about coming seems silly now. I haven't been at Medianett Publishing or even the specialist finance industry for long. This year, I wanted to challenge myself to solo attend the annual finance event held in Cannes and network but, deep down, I also wanted to prove my self-doubt wrong. This diary entry touches on my personal experience as a newly established Gen Z magazine manager putting her name out there in the industry. The outcome, much to my own surprise, was much more pleasant than I had anticipated (although the weather was a shock).

Mar/Apr 2025

Experience

Moving forward, Jaz has ventured into hosting workshops and speaking on panels at events as a way to "give back to the industry". She wants to raise more awareness and educate clients on the process of acquiring a home for the first time and that "no questions are silly". She was one of the key panel speakers at the MCR Property Social Education Day in Manchester, which took place in late March. In June, she'll sponsor the Property and Entrepreneur Summit in Milton Keynes. I’m curious to know more about her time at Cannes, and like me attending the annual event for the first time, Jaz is here "to see what the hype is about". I quickly find out she's one of the sponsors for tomorrow's Ladies Who Cannes event, an initiative aimed at empowering women during their time at the property conference—a message that Jaz resonates with strongly. After a strong start to my first day, I head out to meet Natalie Anderson, mortgage and protection adviser at Connect Mortgages and one of B&C's 2025 Power List champions. At the Palais de Festivals, I scan the scene to find her amid a sea of similar blue suits (seriously, we’ve got to start introducing some new colours). I'm met with a cheery wave from Natalie and join her and a fellow industry friend, who has asked not to be named for job security purposes, at the famous Caffé Roma. For anonymity, I'll refer to her as Jane. Apparently, I'm at the "Cannes newbies" table. After a bit of people-watching and soaking in the busy swarm of finance experts all around, rejoicing over our love of travelling to Hong Kong and eating seafood, I want to get the ins and outs about what motivates this broker. "I love finding solutions for people and presenting cases to clients," Natalie expresses. With her natural flair for establishing a rapport and genuine enthusiasm, I find this easy to believe. I’m keen to learn more about brokers' pet peeves. Jane—who works closely with brokers—and Natalie admit that sometimes navigating issues such as wavering interest rates and lenders pulling out of deals causes frustration. "Brokers often want to see more confidence from lenders," says Jane, in reference to deals being pulled out as far as six weeks in. When I ask what would help mitigate this, I hear a few familiar terms—"Communication, transparency and honesty"—or, put simply: "Tell the broker at the start when something goes wrong." As the light begins to fade, I absorb the information I've been fed throughout the day and finalise my day with some much-needed rest, ahead of what will be a fulfilling day of networking.

Day one: Monday 10th March After landing the night before, I put my big girl boots on and set out to my first meeting with Jasbir Dhaliwal, a conveyancing solicitor at UK Property Solicitor. The sun was peeking through, and I'd already forgotten about last night's terrible rainstorm. After a relaxing half-hour walk, we meet at the hotel Jaz is staying in near Cannes’ main square. I enter and immediately notice her sat with two coffees. We exchange a friendly introduction, then get to chatting and, as I learn more about Jaz, I'm fascinated by her pure passion for all things property—which goes as far as producing children's books. She shares that she's launching an interactive pop-up book introducing four- to six-year-olds to property, which will hit book shops in October this year. Already impressed, I'm told that she hopes to create more books, "in volumes", tailored to all young age groups up to university students. Eager to learn more, I begin a series of questions that are met with inspiring responses. Jaz tells me that an interest in real estate is deeply rooted in her family upbringing, with her father investing in real estate from as early as she can remember. "One of my earliest memories growing up was with my dad going to auction houses at the weekend," she says. "My father was always buying commercial units, converting them to residential, starting HMOs etc. Equally, I brought my first BTL recently without assistance."

Bridging & Commercial

Experience

Day two: Tuesday 11th March

"We’ve now opened the door for women from all over the world to join. Next year, we’re getting a bigger boat." After a goodbye, some of us make our way to the next event: Hilco's drinks reception. Upon arrival, the space is packed and its noisy with light-hearted chatter. I greet their team and, once again, make rounds to introduce myself and B&C to unfamiliar faces. After a productive nearly three hours of connecting and learning a lot, I head to my final drinks and canapés reception with Allica Bank, a five-minute walk away. I spot Charissa Chang, head of sales for the North and Midlands. I join the rest of the team: Nick Baker, CCO; Stephen Spinks, head of sales for the South and Central; and Michael Mann, broker business development director for the South. I find out the crew landed early that morning and headed to their accommodation where I'm told they drew straws to decide who ended up with the single room… sorry, Stephen! Safe to say, I had a fantastic time engaging with everyone, including solicitors Lucy Bradban, partner, and Liz Banks, real estate partner, at Freeths. After hours of chatting on everything from TikTok to sports, Charissa shares her appreciation for being a valued woman at her company. "I've always had a place at the table and my voice is heard," she asserts. On that note, I end my trip here on a high note.

The day I've been most looking forward to finally arrives and it is jam-packed with activities. First on my list: Ladies Who Cannes (LWC), a female-led networking event hosted by Kim McGinley, director at VIBE Finance, Anastasia Ttofis, CEO and co-founder of iLA, and Rosalia Lazzara-Tilley, CEO at Manuka Media. I walk a brisk 10 minutes to the private villa where the event is being held. Upon arrival, I notice branding balloons and banners leading up to the poolside venue. Phew, I'm at the right place! I'm met with warm embraces from Kim and Rosalia, who welcome me in with literally open arms. I notice some familiar faces and get chatting. The views are breathtaking, and the villa overlooks an abundance of quaint, archaic properties across the hill. In front of me is a champagne and drinks station and, to my left, a breakfast spread of croissants, cheese and bread, and fruit platters. As guests continue to arrive throughout the morning, the atmosphere is buzzing with the excitement and the success of the women in front of me. From business owners and property developers to solicitors and marketing entrepreneurs, I notice each sector of the specialist finance industry was present. I think to myself: “How lucky am I to be involved in all of this?” I meet Eriona Bajrakurtaj, an accountant, property developer and CEO and founder of Volt Digital Transformation, an online platform for accountancy and bookkeeping. Eriona tells me she's been running businesses alongside her family for years, starting as young as 13. Next to her is Andreea Daly, founder of Money Squirrel—a financial service that automates business funds by splitting VAT from incoming payments. The name brings a smile to my face and, when I question its origin, Andreea tells me it's technically named after her, for her squirrelling money away. "I've always been good at saving my money like a squirrel, I stash some funds no matter what—even when I've been poor," she shares. Intrigued, I probe her some more about the motivation behind developing the platform. "I wanted to solve my own problems and, having been a project manager for years, I had the right connections to get the platform started," she adds. The more I go round and introduce myself, listening to the stories around me, I feel incredibly encouraged. There's at least one thing that brings all of these women together: the desire to succeed in the same space, where a few years ago, I'm told pink suits were scarce. Today, several women stand before me, wearing vibrant colours and celebrating accomplishment. We gather round to hear a welcome speech from the hosts, who take turns to share their success stories and what brings them here today. Rosalia begins the discussion and takes us back five years to the Covid-19 pandemic. We hear of how she found herself in her 30s, struggling and in need of a change after a decade in the finance industry. "That's when I started a business that wasn’t a PPE enterprise during the lockdown," she jokes, evoking laughter. She finishes her speech by urging her guests to show up and be the change they want to see in a male-dominated space. After several rounds of 'thank you’s' to sponsors and attendees, Anastasia leads us to form a circle around the pool to begin a series of grounding breathwork. We inhale and exhale with a body wiggle, a ritual to "shake off expectations of what the this conference once was, and what it is now". After a final release of energy, we make our way to the Palais de Festivals for a group photo by the fountain. Opening up about the success of the event, hostess Anastasia said: "It’s so brave as a female solopreneur to fly out here and navigate such a big event on your own. I’m genuinely in awe of these women and it’s the most incredible feeling to know we’ve helped those who wouldn’t have come to Cannes without LWC. The event was amazing, and we’ve had such positive feedback already—ladies sharing how it was the perfect, relaxed and welcoming atmosphere in a stunning villa, making connections right at the start of the week to help facilitate introductions and event opportunities for the week ahead. This is what business is all about.

Reflection Would I think about going to Cannes again next year? Absolutely. In fact, I wish I had stayed longer. Back at my desk in London, I carry the adrenaline that kept me going throughout the week. To women who are unsure, you are more than your appearance, your role, your sex. You are an expert and completely worthy of attending. Imposter syndrome

was a term that arose a couple of times but, to quote a LinkedIn post I saw by Grace Andrews, brand director of The Diary of a CEO: "Imposter syndrome isn't a diagnosis, it's a distraction." There are plenty of women in the same boat and plenty of male allies to support you in your journey. The issue is not being a woman in the finance space, it's thinking you don't have what it takes. I've apparently learnt a lot in the past three days, but one key takeaway is that this lady, certainly Cannes. w 71

Mar/Apr 2025

Opinion

Why would you do a podcast? What can creating a podcast do for specialist lenders and brokers, and why can it be more rewarding than social media and blogs? Three experts explain how it engages people and brings in business— and how to make a good one yourself

Words by

ROB BARNARD Intermediary relationship director at Pepper Money

Bridging & Commercial

Opinion

hen we launched business interactions. Having meanThe Specialist ingful, open conversations with a podcast at Pepwide variety of guests has reinforced per Money, our just how dynamic and resilient our m i s s i o n wa s industry is. More importantly, it has simple: to create a space where given brokers an opportunity to mortgage brokers and the wider hear directly from others in the field community could gain real insights who share similar experiences and into the industry in an engaging and challenges. accessible way. While the podcast wasn’t created Left to right: Rob Barnard and Paul Broadhead Now, five seasons in, it’s clear that as a direct business generator, it has we’ve built something that truly certainly helped strengthen Pepper resonates. What started as an idea Money’s relationships within the has grown into a well-established intermediary market. resource for brokers, providing expert Brokers who listen get a clearer discussions, industry updates, and understanding of how we operate, personal stories that offer valuable our values, and the way we approach perspectives on our ever-evolving lending. This has led to increased market. engagement, new partnerships, and a Podcasts provide a unique way to growing sense of community among stay informed in an industry that moves listeners. quickly. Brokers juggle demanding Looking ahead, I see the podcast schedules and, while there are many playing an even greater role in shaping industry conversations, ways to absorb information—conferences, reports and webinars to name a few—none offer the same flexibility continuing to attract new audiences, and further reinforcing Pepper as a podcast. Whether in the car, at the gym, or even walking the dog, Money’s position as a specialist lender with a broker-first approach. brokers can tune in and stay connected to important discussions without Behind the scenes, creating a podcast is more complex than it might it feeling like another task on their to-do list. seem. From securing guests to researching topics, preparing questions, Since the first season was launched, The Specialist has achieved recording, editing, and promotion, a significant amount of work goes more than we could have imagined. Each episode has brought into every episode. insightful and sometimes unexpected conversations, featuring The challenge is to keep the conversations feeling natural while industry experts, brokers and thought leaders who share their ensuring they deliver real value to listeners. It’s important to strike knowledge and experiences. a balance between structured discussion and organic conversation, We’ve explored critical topics: technology in lending, the making sure each episode is polished yet authentic. The editing process alone takes careful effort to refine the content challenges facing first-time buyers, the role of building societies, and the importance of mental health and personal motivation in an while keeping the tone engaging. It’s a team effort and I’m fortunate industry known for its high-pressure environment. to work with people who share the same passion for delivering a highSeason four, in particular, took a deep dive into wellbeing, shedding quality listening experience. light on the realities of long working hours and stress within the Five seasons in, the journey is far from over. The feedback we’ve mortgage sector. These discussions go beyond market updates—they received has been overwhelmingly positive and it’s clear that there’s tap into the challenges brokers face every day and offer perspectives an appetite for more. that can genuinely help. As the mortgage market evolves, so will The Specialist. Future seasons Personally, hosting The Specialist has been incredibly fulfilling. It’s will continue to bring in high-calibre guests, address emerging trends, allowed me to connect with people in a way that’s different from traditional and refine the format to ensure we remain relevant to brokers.

‘We’ve built something that truly resonates’

Mar/Apr 2025

Opinion

nc e u p o n a t i me, I never realised how much I mortgage conversaactively engage in a conversation tions were reserved until I recorded podcast interviews. for formal meetings Those who know what I’m talking in banks, often lastabout will resonate here. Active ing for hours. If you were lucky, listening is a skill, but you get so there was an information leaflet on much from those you interview if the front desk. Bespoke advice was you harness it, and it’s a skill for life. saved for those who were willing to I have since translated this into TV and radio work—and I love it. take the time to sit for hours, under the careful scrutiny of a suited bank How do you stand out? There are representative, who might tell you if so many more podcasts now—sticking you were eligible but wouldn’t always to your brand and style is important. explain why or why not. I think The Mortgage Mum podcast When I launched The Mortgage stands out for its gentle, feminine Mum, I wanted to change all that. approach to finance. We often get Sarah Tucker So, creating a podcast became our feedback saying how relaxed people goal—it felt like the natural next step feel listening to it—from the bespoke after using social media to educate piano music to the gentle delivery—I and empower our audience, and want to show that mortgages do not to attract business. I’d noticed that have to be scary. Learning can be a mindful experipodcasts had become a popular ence that doesn’t involve harsh lights vehicle to create long-form, evergreen content that wouldn’t disappear on and intense conversations. Financial our social media feeds within a week. empowerment can look and feel soft It would be a space where people and feminine and be super powerful. intend to spend more of their time We are also partial to a deep and meanlistening to a topic, while they multiingful interview, and people love that. task. When it comes to podcasting, We record a variety of podcast people are happy to commit to 10episodes, with lots of guest hosts to- 15 minutes or even longer, as from within the wider team, too. We opposed to the 30-second attention have a variety of external guests who span you’re promoting to (if you’re apply to appear on the show, as well lucky) on a social media feed. The as regular mortgage Q&A episodes Words by audience’s attention is intentional, delving into the details of every aspect and that makes a huge difference. of the mortgage market. I believed mortgages would transI used to record weekly episodes in CEO and founder of The late well to this new and engaged my bedroom and, even though I have Mortgage Mum audience—people who wanted to a lovely garden office now, my set-up learn more but on their own terms, hasn’t changed much. I invested in a without the immediate need to good mic by Editors Keys early on, speak to an adviser. And so, even and it’s stood the test of time. without spare time, I followed my gut and launched the podcast. You need a great editor—someone who can ensure you get great I’m so glad I did. sound, as people stop listening if it’s not high quality. You also need to Since its launch, thousands of listeners have tuned in to learn and be able to upload the episode, write show notes, create a cover image, and promote episodes on social media. reach out asking us very specific questions and suggesting topics to cover in future episodes. They often send wonderful emails thanking An electronic pre-interview questionnaire is a great tool to allow us, and this naturally translates to new mortgage clients, future team your guests to be in control of their self-promotion. I’d love to record high-quality video episodes in the future too, as I members, and businesses who want to work with us. think visuals are becoming increasingly popular. Personally, in creating a podcast, the success felt much deeper, for it was in interviewing guests on The Mortgage Mum Podcast that I really Ultimately, you’ll need to dedicate time and energy, but the rewards understood how much I love to present, and what a skill it is to interview. are worth it. Remember, people buy from people, so podcasts are a You have to be a very good listener, and less of an interrupter—something fantastic connector. Whether it’s to recruit, attract leads, or build your community, I'd highly recommend giving it a go. I had to practice.

‘The audience’s attention is intentional, and that makes a huge difference’ SARAH TUCKER

Bridging & Commercial

Opinion

Marc Champ

It’s real, raw, and reminds you you’re not alone

tarting a podcast may It stands out because it is real, not seem a lot of effort for staged or scripted—just us saying what not a lot of reward, but I we think at the time. It is authentic, really felt it was my duty raw, and sometimes calls out areas of to the industry to set one the industry that don’t sit comfortably up. The main reason was that I feel I with us. have a lot of knowledge to share with We usually have a guest on our the wider property community. There podcast. My co-host Ro Sharma and I are a lot of training companies in the get to know the industry guest and try property industry and sometimes, to encourage them to share their take Words by the trainers are not as experienced on recent events and best practices. as I believe they should be. I felt it It is very chatty, and we try to give was my responsibility to share what our guests the opportunity to be Managing director at Wharf I have learnt over the years and do themselves in a relaxed environment. Financial Services so without making a profit. The more This usually leads to us going down informed the industry is, the better rabbit holes and exploring topics we it is for everyone. never thought we would cover. For us, the podcast is not about Brokers can gain a lot from lead generation—it is about doing the right thing. Over the years, I have podcasts. Not only will they be able to gain some useful nuggets of had many unofficial mentors and people I looked up to in the industry. information, but they will also learn they are not alone in the industry. Now, it is time to give something back. What has it achieved? You may Broking can be a lonely job at times and if a broker were to listen to have to ask the listeners. the podcasts available to them, they would see that we all go through The podcast hasn’t generated any income, but it remains a good the same things and face a number of different challenges. barometer for customers who want to know that we know our stuff. Setting up a podcast is a bit cumbersome to begin with—but if you get Listening to the podcast doesn’t just share knowledge, it gets potential the right processes in place, it can become seamless. The biggest challenges customers comfortable with us as people and a business. We don’t act are being consistent and persevering. It is so important to have regular episodes and keep going, even if you think nobody may be listening. up on the podcast, we simply say what is on our mind and give our There will be somebody interested, somewhere… take on industry events.

MARC CHAMP

Mar/Apr 2025

Driven by relationships, focused on solutions. Our in-house specialists pride themselves on rapid decision-making and efficient processing, delivering bespoke bridging solutions across residential, commercial, and refurbishment projects. Operating throughout England, Scotland, and Wales, our team understands tight deadlines and commits to reliability and flexibility. When conventional financing falls short, Fairbridge Capital delivers practical solutions backed by specialised knowledge and a commitment to service excellence. Visit fairbridgecapital.co.uk for more information and to apply.

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Words by

LUKE NAVIN

Managing director at Century Capital

he UK bridging finance sector has entered 2025 with strong momentum, continuing to evolve in response to changes in borrower behaviour and market dynamics. While the final quarter of 2024 showed robust activity, early data from 2025 suggests some notable shifts in in the bridging market. At the heart of this transformation are a gradual move in asset locations, a change in balance between refinancing and acquisition-based lending, and an increasingly crowded lending market. The emergence of new players has led to greater choice for borrowers, but also raised concerns about expertise, reliability and the ability to tailor solutions to complex borrower needs. Perhaps most significantly, the UK bridging loan book has now surpassed £10bn, according to Bridging and Development Lenders Association data, reinforcing its growing credibility as a mainstream financial tool rather than a niche solution.

into bridging trends

Beyond ultra prime

Bridging finance is changing significantly as it becomes part of the mainstream. Looking ahead, this offers opportunities to experienced lenders to stand out

One of the most striking developments seen in early 2025 is the change in distribution of asset locations used for security. While prime central London (PCL) remains a dominant area, the data reveals a broadening spread of secured assets across different regions. In Q4 2024, 56% of secured assets were in PCL, reflecting the area’s traditional strength in high-value lending. However, this figure declined to 46% in early 2025, as more loans were secured against properties in Greater London and the Home Counties. The rest of London saw its share of secured assets rise to 34%, up from 26% in the final quarter of 2024. Similarly, the Home Counties experienced growth, with their share of secured assets increasing from 17% to 20% over the same period. 77

Mar/Apr 2025

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The shift suggests that bridging finance is no longer reserved solely for ultra-prime assets in Mayfair, Chelsea and Knightsbridge, but is instead being leveraged more widely across Greater London and surrounding regions. The driving forces behind this shift are varied but include diversification of investor portfolios and mainstream adoption of bridging finance. This transition aligns with Century Capital’s own observations, with deals increasingly spanning beyond traditional PCL postcodes. While prime London remains a core part of our loan book, we have seen an increase in borrowers seeking financing for high-value regional properties, suggesting a broader industry-wide trend.

Case study: £6m refinance before sale

In an example that illustrates these evolving trends, Century Capital recently completed a £6m refinancing deal on a luxury home in St John’s Wood in London. The borrower, a high-net-worth entrepreneur, originally intended to sell the asset to repay an existing loan, but the sales timeline was extended beyond expectations. Instead of being forced into a distressed sale, they opted for a bespoke refinancing package from Century Capital. This enabled them to: • retain control of the property while awaiting a suitable buyer • secure additional working capital for further investments • exit at a higher valuation by allowing more time for the right buyer to emerge This case is indicative of a broader trend of more borrowers using bridging finance as a strategic tool, not just for purchases but also for smoother, more flexible exits.

Popular for purchases

Another significant shift in early 2025 is the changing ratio between refinancing and purchase-based bridging loans. Historically, refinancing has been the dominant force in bridging and, while it remains the primary use case, its relative share is declining. In Q4 2024, 85% of bridging loans were for refinancing purposes, compared to just 15% for purchases. However, by the end of February 2025, the share of refinancing loans had dropped to 62.5%, while purchases accounted for 37.5% of them. There are several potential reasons behind this trend: • shifting interest rate expectations—with many people anticipating a fall later in 2025, some borrowers are positioning themselves for better long-term financing options post bridge • increased investor confidence in market stability—as bridging finance becomes more mainstream, more investors are comfortable using it as an acquisition rather than a refinancing mechanism • liquidity constraints in traditional lending—fast access to longterm financing remains hard to come by, meaning bridging is filling a gap for many borrowers This shift in borrower motivation further underscores the growing strategic role of bridging finance, moving away from being just a reactive refinancing tool to a proactive investment enabler.

Big and overcrowded

While bridging finance is thriving, it is becoming increasingly competitive. The market’s exceeding £10bn demonstrates its credibility as a mainstream financial solution, which has also led to an influx of new lenders. This has created both opportunities and risks. While borrowers now have more choice, many new lenders lack the expertise needed to handle complex deals. As a result, rigid, inflexible lending structures are becoming more common among less experienced entrants, and borrowers can struggle to distinguish between true experts and newer, less experienced lenders. As competition intensifies, borrowers will increasingly turn to lenders with a proven track record—lenders who can offer tailored solutions, handle complex financial structures and provide the speed and flexibility bridging loans are known for.

Exits: rise of refinancing

The way borrowers are exiting their bridging loans is also changing. In Q4 2024, 53.5% of borrowers exited by selling their security, while only 31.1% refinanced. By early 2025, however, this trend had reversed, with 62.5% of borrowers now exiting via refinance and just 37.5% selling their assets. Several factors could be influencing this shift. First is longer transaction times as property sales are takes longer, leading more borrowers to refinance rather than rush into a sale. Next is market hesitation, with some sellers waiting for better conditions before listing their properties, prompting short-term refinancing as an interim solution. For lenders, this means flexibility is key. More borrowers require tailored solutions that allow them to refinance efficiently while keeping their exit strategies open.

Bridging & Commercial

WHAT’S NEXT? As we move further into 2025, the bridging market will continue to evolve. Key trends to watch include: • a more balanced regional spread of secured assets, particularly in Greater London and the Home Counties • the continued strong demand for refinancing, although an increasing number of borrowers are using bridging for acquisitions • more borrowers exiting via refinancing rather than outright asset sales • an increasingly crowded lender market, making experience and expertise more critical than ever Bridging finance has firmly established itself as a fundamental pillar of the UK property finance sector. As the market grows, the ability to adapt, offer bespoke solutions and maintain strong relationships with borrowers will be the defining factor separating experienced lenders from entrants. 78

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Words by

MATT DAVIES CEO and founder of Empire Global Finance

Bridging & Commercial

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BRIDGING FINANCE: THE UNSUNG HERO

Bridging is not just a stopgap. When used properly, whether at auction, to fund refurbishment or to secure a precarious purchase, it can unlock serious opportunities

Why bridging matters

People often view bridging finance as a niche corner of the property market, but the latest figures suggest otherwise. According to the Bridging Trends Report 2024, total gross bridging lending reached £822.3m, making it the second-highest annual total since 2015, just shy of the £831m record set in 2023. While the sector saw a slight dip year-on-year, the sustained high volume reflects a resilient and well-established market. The average monthly interest rate rose marginally to 0.88%, up from 0.86% the previous year, suggesting a measured response to broader economic conditions while remaining competitive for borrowers. So, why does it matter? Because traditional finance can be slow. Painfully slow. Banks operate on their own timelines, and property transactions don’t wait around for underwriters buried in paperwork. Whether you’re buying at an auction, securing an investment property or dealing with a chain break, you need funds now, not in three months. That’s where bridging comes in. It’s quick, flexible and, when used correctly, a strategic advantage rather than a last resort.

I’d love to tell you that the unsung hero of property finance is me. That I’m the one sweeping in at the last minute, saving deals from disaster, making sure every auction buyer, investor and developer gets the funding they need. However, the real unsung hero? Bridging finance. The workhorse of the industry that rarely gets the credit it deserves. Yet, despite its reputation as the fast money solution, bridging finance is not just a quick fix for desperate buyers who left their mortgage applications too late. It’s an essential tool that keeps the market moving. If property transactions were a stage production, bridging would be the one holding the whole thing together behind the scenes and keeping the lights on while everyone else basks in the spotlight. At Empire Global Finance, we’ve built a business on understanding just how crucial it is (among our much wider range of services). And, as the exclusive finance partner of Allsop, the UK’s largest auction house, we see the impact of bridging loans in action every single day.

Before an auction bid

If there’s one place where bridging really flexes its muscles, it’s the auction room. You win the bid, you pay a 10% deposit, and you’ve got 28 days to complete. That’s it. If your funding isn’t in place, the deal’s dead, and you lose your deposit. This is why our partnership with Allsop is so crucial. As the UK’s largest property auction house, it brings in £1bn-plus in auction sales annually, and a huge chunk of those deals rely on bridging finance. We work with buyers before they even set foot in the auction room, ensuring they’ve got everything lined up so they can bid with confidence.

Mar/Apr 2025

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AUCTIONEER’S VIEW: BRIDGING STRENGTHENS SALES

It’s not just about speed, it’s about certainty. In the third quarter of 2024, 24% of all bridging loans were used for investment purchases, proving that professional landlords and investors are actively choosing bridging as a strategic tool, as analysed by investment firm Excellion Capital based on the Bridging Trends data reported last year.

The many faces of bridging

While auctions and bridging go hand in hand, this type of finance isn’t just reserved for gavel-chasing buyers. At Empire, we’ve seen bridging loans used in high-net-worth transactions, development projects and corporate restructures. Some of the most common scenarios? These include: • chain breaks: when a sale falls through at the last minute to keep the purchase alive • refurbishments and conversions to acquire and renovate properties before refinancing onto a longer-term mortgage • commercial property where businesses secure offices, retail spaces and mixed-use properties before restructuring their finance It’s not just a stopgap solution. It’s a financial instrument that, when used correctly, can unlock serious opportunities. Now, not all bridging finance is created equal. The market includes a variety of lenders, each with their own approach and risk appetite. Broadly speaking, I like to identify three main types: • institutional bridging finance: these are loans backed by banks and larger financial institutions. They apply stringent underwriting processes, often mirroring the scrutiny of a long-term mortgage application. The advantages include stability and competitive pricing. The downside? It can still take longer than some borrowers would like • specialist bridging: this involves firms such as Together, which focus exclusively on bridging finance, offering more pragmatic and commercially driven solutions. They have greater flexibility, making quicker decisions based on real-world circumstances rather than just box-ticking • private bridging finance: high-net-worth and ultra-high-net-worth individuals, as well as family offices, also play a key role. They see bridging as an opportunity to generate high returns and, because they operate outside the institutional framework, can move at lightning speed. We’ve seen deals completed within 24 hours. Of course, that level of service comes at a price but, when time is of the essence, it’s invaluable

Words by

STUART GAYER

Residential auctioneer and partner at Allsop

Auction deadlines are tight, and a market full of finance-ready buyers means more competition, stronger bids and smoother completions At Allsop, we see first-hand how bridging finance and auctions go together. Buyers who come prepared with the right finance bid with confidence and sometimes have that advantage over the competition. Speed is everything in auctions. When the hammer falls, buyers have 28 days to complete, there’s no waiting around for a high-street lender to decide if they’re in the mood to lend. That’s why bridging finance is so crucial. It allows buyers to act decisively, secure properties quickly then refinance onto longer-term solutions when the time is right. A market full of finance-ready buyers means more competition, stronger bids and smoother completions. As the UK bridging sector is expected to hit £11.5bn in lending this year, it’s clear that more investors than ever are using bridging as a strategic tool rather than a fallback option. For buyers, it’s all about certainty. You wouldn’t turn up to an auction without knowing how much you’re willing to bid, so why turn up without knowing how you’re going to fund it? Having the right finance in place isn’t just an advantage; it could be the difference between winning and losing the deal.

Bridging & Commercial

Expect further growth

So, where is bridging headed? Well, if market trends are anything to go by, it’s not slowing down. Here’s the evidence: • bridging completions surged to an unprecedented £1.79bn, a 2.6% increase from the previous quarter. Loan books crossed the £9bn milestone for the first time, growing by 7.6% to £9.01bn, while applications rose 6.7%, reaching £10.9bn. (The Bridging & Development Lenders Association, Q3 2024) • average completion time dropped 23%, demonstrating streamlined operations. Re-bridging declined to 7% indicating stronger market confidence. Interest rates edged up slightly to 0.88% amid macro pressures. Auction purchases rose to 11% while chain breaks fell to 20% during 2024. (Bridging Trends Report, 2024) • specialist lenders continue to expand their products, offering more competitive rates and longer terms, making bridging more accessible than ever.

More than just a lender - we’re your long-term property finance partner MSP Capital has been in the industry for over 40 years, providing specialist lending solutions to property professionals for sums up to £10 million. We are a relationship-led lender with expert industry knowledge, offering reliable decisions and a supportive team that you can depend on.

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Experience Beyond Finance mspcapital.co.uk

Call us on 01202 743400 Terms & Conditions: MSP Capital is a provider of non-regulated loans against properties that are registered in England and Wales. All Offers of Finance are subject to satisfactory legal due diligence, a valuation report, ‘know your client checks’ and, for Development Finance only, the initial monitoring surveyors reports. MSP Capital Ltd. is a registered company in England & Wales. Company number: 01543169 Registered Office: MSP Capital, Strata House, 12-14 Castle Street, Poole, Dorset BH15 1BQ

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ROKERS SET THE PACE, BANKS SHOULD KEEP UP

Bridging & Commercial

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Words by

CHARISSA CHANG Head of broker sales—commercial mortgages (North and Midlands)

The sheer variety of lenders and products, plus a lack of financial expertise among clients, means brokers now do far more than secure finance. Banks could benefit from adopting a similar approach

Working with commercial brokers of all sizes and specialisms, I get to see the bigger picture of the broker experience. Not only is this fascinating from a personal perspective, it’s also key for us at Allica. We want to be sure we’re bringing products to market that you really want and need. A lot has changed since I entered the industry more than 20 years ago. I’ve seen a huge number of changes in that time and it’s not been without issues and challenges. Brokers have done a fantastic job of stepping up to help their clients, but that doesn’t mean it’s been easy. One thing above all else is clear. In 2025, commercial brokers are having to be more things to more clients than ever before. For lots of brokers, securing finance is now just one role among many.

to SMEs, and their share of the pie has only grown since. 2020 was a catalyst year for this, with unprecedented demand for finance owing to the pandemic and its economic effects. Accredited lenders rushed to process government-backed loans, tightening their risk appetite, and deprioritising other lending. Specialist and non-bank lenders filled the gap, and some accredited lenders are still playing catch-up. The result is that the market has become more diverse, and finance is being drawn from a wider pool of lenders. As bigger banks pulled back, the profiles of smaller and specialist lenders rose. For clients, the support of a broker became only more critical, as greater complexity requires more bespoke guidance. In some ways, the expertise of a broker has never been more important. The sheer variety of lenders, products, and terms has changed the way brokers work. I hear from many that they’re addressing the need for finance at a more strategic level, advising beyond their usual area of expertise and pointing a client towards the best type of lending first. Some are even being asked to advise on the need for funding at all. The days of a transactional relationship with clients seem to be coming to an end. Many of today’s brokers are providing more bespoke, strategic support for their clients far beyond where they were before. It spells a huge opportunity.

LENDERS FAR MORE DIVERSE One of the biggest reasons for this is the increasing complexity in the lending environment. The number of banks has grown hugely in the past 15 years, and there are countless specialist and non-bank lenders for businesses to choose from. At the end of the global financial crisis, the four biggest lenders accounted for 90% of lending to SMEs. However, by 2021, challenger banks were providing the majority of lending

Mar/Apr 2025

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THE EXPERTISE GAP A primary reason for this is a critical lack of expertise available to businesses. You know as well as anyone: SME owners wear so many hats, juggle competing priorities, and always need another hour in the day. We can’t expect them to be experts in everything—especially not the intricacies of business finance and banking products. In an ideal world, they’d have a well-developed network for support and expertise, but that’s increasingly hard to find. Most SMEs I speak to couldn’t tell you the name of anybody at their bank, while accountants are overstretched enough as it is. The pillars they used to lean on have disappeared or can’t offer any extra support. Brokers are increasingly stepping up to the challenge to fill that gap, fielding questions beyond their old remit. Personally, I’ve heard from several brokers that they’re helping clients with more general banking questions, too, such as choosing savings accounts or deciding whether to switch current accounts.

CASE STUDIES: WHEN BANKS AND BROKERS COLLABORATE I want to illustrate all this through a couple of examples to convey how banks can give brokers that extra support. Bridging loan to commercial mortgage A broker approached their Allica BDM about a client who was looking to buy an investment premises with a gym as a tenant. The proposal didn't fall into Allica’s credit appetite as the tenant had been in operation for only several months. Their BDM suggested the client purchase the property with bridging finance instead, giving the gym a chance to build up a trading history before the borrower exited onto a commercial mortgage with Allica. The broker spoke to our expert bridging team for more detail, then suggested the idea to their client, who was grateful for their suggestion and creativity to get the deal over the line.

BANKS SHOULD DO MORE Taking a longer-term view, it’s clear that brokers are going to play an even more crucial role in the SME ecosystem in an increasingly difficult climate. It’s incumbent upon banks to do their bit to help them. There is a huge opportunity for banks to step up and educate brokers on their whole product range, so they can provide the most informed guidance possible. They should also make people readily available in the bank to support a broker when they are exploring options for a client outside their usual specialism.

Adding value beyond loans A client approached their broker asking if they had any suggestions for a business bank account, because their existing account had been closed. The broker spoke to their Allica BDM, who pointed them towards our business rewards account. By switching to Allica, they were able to earn cashback on their card payments and get a really strong return on their excess company cash. The broker helped that business make hundreds of pounds in cashback each month and thousands extra in yearly interest on savings, making a real difference to their bottom line.

“In 2025, commercial brokers are having to be more things to more clients than ever before”

Bridging & Commercial

IT’S THE BANKS’ TURN As the lending environment grows more complex and expert guidance becomes scarcer for business owners, brokers have a major opportunity to add value beyond their usual remit. Alongside securing finance and reducing borrowing costs for SMEs, they can make a real impact on a business’s bottom line, too—something many are already doing. Now, it’s up to banks like Allica to ensure brokers have the support they need to fill this gap.

West One, Specialist in Large Loans

The larger the loan… the greater the opportunity West One provides bridging loans of up to £20m and above* across asset types including residential, commercial/semi-commercial, and land. Speak to the West One team today!

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E | hello@westoneloans.co.uk

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West One is a trading name of the underlying firms, who are registered in England and Wales and have their registered office address at The Edward Hyde Building, 38 Clarendon Road, Watford, WD17 1JW: West One Loan Ltd is authorised and regulated by the Financial Conduct Authority (firm reference number 510024), their company registration number is 05385677. Aura Finance Ltd is authorised and regulated by the Financial Conduct Authority (firm reference number 709675), their company registration number is 08326315. Certain types of loans are not regulated, for example loans for business purposes or certain buy-to-lets.

One Day

WHERE BANKING MEETS TRUSTED PARTNERSHIP

One Day

I spent a day with United Trust Bank, one of the biggest banks in the specialist finance industry, to learn more about its team dedicated to serving brokers, its new Manchester office, and why unregulated loans are one of its big priorities this year

or the first time since starting my role six months ago, I am making my way to meet some of the experts behind one of the largest (and oldest) specialist lending banks in the industry. Unsure of what to expect, I anticipate general discussion around rate reductions, sentiment on market activity, and what makes this lender stand out. What I didn’t expect was to hear about my favourite make-up brand, Charlotte Tilbury, or a bhangra dance-off. If this took you by surprise, then this sums up my unexpectedly wholesome day with UTB.

Words by

DHUHA AL-ZAIDI Photography by

ADRIAN POPE

Left to right: Dexter Stuart and Craig Taylor

POWER PLAYERS It’s 10:30 am, and I’m walking to UTB’s head office near Moorgate—a convenient 20-minute walk from our own office in Aldgate. The beaming rays of the sun set the tone for the meeting, and I head off, optimistic to meet the team and, quite frankly, jealous that they’re spoilt for choice with all the enticing lunch spots around them. In the 36-storey CityPoint tower, I click number 28 in the lift and arrive swiftly. After informal introductions with the team—and learning that Paula Purdy, sales director of bridging, has been teaching Sundeep about her go-to make-up brand Charlotte Tilbury—the atmosphere instantly relaxes, and we crack on with industry topics. I kick-start the discussion with Paula, who has headed up the bank’s bridging sales team since joining UTB in 2023, about her sales strategy for the year ahead. “We've got a big focus on unregulated business this year, as well as meeting our growth targets and our margins and profits. So, there's quite a lot of pressure on sales to get the balance. But it's more than achievable with the team we've got,” she says. With hitting targets and best servicing clients and brokers in mind, the bank set up sales ‘power teams’ comprising a field sales BDM and internal sales manager working together to support brokers in their regions and strengthen relationships all around. UTB has bridging power teams covering England, Wales, and Scotland. Paula explains that the concept stemmed from working with different lenders who had introduced elements of it before, but claims that UTB has produced something much more well-rounded. “The idea behind it is that you have your team and field sales people who go out and see the brokers in a face-to-face meeting, but we also had internal sales who dealt with calls and enquiries that came in, but we weren't very joined up as a team. It was really wasting an opportunity for us as it wasn't maximising the sales. So, what we decided to do was buddy up the teams,” she elaborates. “The concept behind it is that the broker is well supported. It's all about relationships and, after being in this industry for almost 25 years, I understand that it's not always about rates or your products. It's

Bridging & Commercial

Sundeep Patel

One Day

“People can work with us knowing we’re going to be here to support them, whatever happens”

what you bring to that broker's business and whether you add value to it.” This, she believes, is the “relationship piece and the extra mile” that differentiates UTB from its competitors. So far, the impact has been improved service and consistency. “Brokers aren’t getting different messages from different people,” she adds. Paula emphasises that brokers should understand the bridging market. “The key to a bridge is the exit. If the broker doesn't play their part in supporting the exit, then we do have challenges as a lender. By working together, we understand what is needed. With the right brokers, they benefit, and we do too. So, we're not out there to work with everybody who professes to do bridging. But we are out there to work with the best partners that are suited to UTB,” she explains. When I ask what her long-term goals are, she jokingly responds: “It’ll be easy to answer this with my director sitting next to me.” [laughter] Paula aims for the team to “further grow and develop”, and shares that they’re already in discussion to change internal processes to become even more proactive. “The idea is, from May, I see us ringing brokers up once a week asking, ‘What have you got on your desk? Is there anything you'd like us to look at? Let me talk you through your pipeline.’ That again adds another dimension to our service. I would look to see what we've achieved by the end of the year and keep the broker at the forefront of what we want to do,” she shares. I move on to Sundeep to get the latest insight on bridging trends and opportunities in 2025, but not before I congratulate him on his B&C Power List win this year. Immediately, he tells me it’s a team effort. “We have a culture from day one of having a one-team ethos whereby we collaborate with each other. We make it very clear from

Left to right: Helen Wakeford and Becky Kidby

senior management down that we're open and transparent, and we take that forward with all our partners. We demonstrate that we want to be a trusted partner and ideally what we say is what we deliver,” he says.

EXITS NEED BACK-UPS

Sundeep reflects on the past 12 months in the bridging market and observes that “the quality of the exit—a key part of the deal—has deteriorated”. In 2025, Sundeep emphasises the need for more focus on exits, including back-up plans. “The other thing I've seen, which is really positive, is the resilience of the market. If you look at where we were when Liz Truss was in power, she made some interesting decisions with her then-chancellor, and it impacted the mortgage market. However, the bridging sector has shown it's grown,” he notes. Sundeep credits better knowledge of bridging to education from the BDLA—the trade association for bridging and development lenders—which he believes has helped improve discussion around bridging and its multifaceted use. “In the past 12 months, I hear less from people new to bridging that it's expensive, which was the historical thing about bridging. That means education is working, and that’s helped through the BDLA and the accredited programmes it set up last year. It's important that future brokers learn because that's helping the reputation of bridging,” he urges. In early February, UTB announced a series of rate reductions across its unregulated bridging products, in a move I’m told is indicative of their commitment to clients. “The way we view what we do at UTB is that we try to always be fair to our customers. So that means offering products that are priced fairly to help support their solutions,” Sundeep shares. While advantageous, Sundeep says the rate cuts are not a means to attract a wider pool of borrowers, but rather ameliorate their existing

Paula Purdy and Sundeep

situations. “I don't think it's a common trend that people wake up in the morning, go to a broker, and ask for a bridge. It's got to be a solution that's provided by the broker market to their clients and customers. It benefits when it's competitive, but they still must do a lot of education with those clients and customers to explain to them why it's priced differently and what the benefit of a short-term loan is to help their solution,” he explains. He adds: “We’re known as a big, regulated lender in the market space, and we have a decent market share. We want to grow our unregulated business.” This aim will be supported by the establishment of UTB’s Manchester ‘powerhouse’—a satellite office to further progress the bank’s operations in the North. “This will help support brokers nationally, which is something we always wanted to increase, as it helps us grow our market share. It helps us expand what we offer clients as well, so that's why we thought we should take a stance and be a bit more competitive in the space,” says Sundeep. The new offices will essentially be a hub for the bank’s BDMs and underwriters, facilitating deals in the North and providing a meeting place for brokers and customers. Noting that the competition in the bridging space is “extremely fierce”, Sundeep foresees a few lenders dropping out over the next 12 months. “I’m always hearing rumours that there are new entrants around the corner and they're looking to come in and revolutionise the market. I've yet to see that really have an impact. What is the differentiation? When I speak to brokers, it's hard to tell, and you don't get much feedback. I suppose if there is going to be someone who does that, it'll be quite difficult in the unregulated space. From my perspective, I do think there are too many lenders in the market, and I wouldn't be surprised if a few lenders pull out. I also think there'll be a bit of M&A activity. So, we may see a slight reduction,” he predicts. Touching on UTB’s growth, the bridging director expects more local recruitment around its Manchester office, in turn enhancing the skills of the overall team. Sundeep also explains how the lender handles loans is changing to allow it to accelerate smaller deals and concentrate on larger transactions: “We’re going to introduce a streamlined process for smaller loans below £250,000. So, they need less time-specific criteria, allowing the bulk of our underwriting to be done on the more complex, higher-value loans. One thing we've done very successfully on the back

Bridging & Commercial

of last year is that we now do a considerable amount of £3m-plus loans. That’s been noticed in the market because our demand for larger loans has definitely increased,” he says. “We're a lender that's been around for a while. We know how to lend. From a market perspective, we're resilient and we're going to be here for the long run—and that's the key thing. People can work with us knowing we're going to be here to support them, whatever happens,” he adds.

OPEN AND PERSONAL We move on to meet Dexter Stuart, internal relationship manager and Craig Taylor, key account manager—two names that have popped up a couple of times when discussing the bank’s power teams. I first spoke with Craig, who oversees business in south Wales and the South West of England. His role covers anything from meeting brokers in those regions and receiving feedback and managing their accounts, to assisting with structuring and underwriting cases. He notes that some of the bank’s biggest bridging loans have stemmed from the regions he covers, and he and Dexter add a “personal touch that keeps people coming back to the bank”. As a former broker, Craig draws on his background to understand the specific needs of the clients. “I give the key accounts much more time, and what that's doing is building a real understanding of their needs as a business. I'm quite empathetic. I used to be a broker and did 10 years of that before I came to the lending side,” he says. Ensuring good communication, a crucial element to ensuring seamless service, is one of his team’s strong suits, Craig tells me. “We've got a cohesive and very transparent means of operating. The bank has always prided itself on open communications with the underwriting team as well, so you've got a phone number for everyone where, typically, other lenders are moving away to call centres and automated emails. I think that personal touch is really what separates us in the market,” he says proudly. Dexter’s role, which he says is “busy but fun”, involves assessing cases and liaising with brokers to the very end. His key to a strong rapport with brokers is to gain their trust. “I go out to meet the brokers and learn how they operate. I’ve found that their email style may not be how they actually speak to you in person. I’ve learned not to take abrupt 92

One Day

emails personally. There’s no one-size-fits-all approach,” he shares. This seems to be working, as Paula tells me some brokers went as far as to ask when Dexter would be back from his safari honeymoon—a testament to his bond with them. To Dexter, success looks like “customer retention and satisfaction”. Adding to how the bank plans to adapt to clients’ needs, Sundeep says: “While the market got trickier, we remained agile and, again, it’s down to the one-team ethos. There is no, ‘Dexter, you're in the office and Craig, you're out in the field’. No, they are a team. We don't need to tell them that because they just do it, and brokers tell us they are. That's how we know it's working.”

DON’T FEAR THE MEETINGS I meet the leading ladies behind the operations and underwriting divisions next. First up is Anita Kirkbright, head of bridging business operations. Her day, as with many

“We’re not scared to challenge each other. Everyone comes to a meeting able to challenge, and we cascade that down through the division”

of us, starts by checking her calendar and seeing which meetings she’s required in. Anita is the mastermind behind operational system changes that look to improve client services. Her strategy to stand out from other lenders is sticking to UTB’s core principles and relaying those to brokers. “We work together to make sure that we take customers’ feedback on board. We do a lot for our brokers and customers in terms of making system changes based on what they want and what works for them to help them out,” she says. “It's a big thing for the bank simply because, if our staff can thrive, then that will come across when we're dealing with external partners,” adds Sundeep. Touching on the Consumer Duty, he notes that this has been “widely accepted and welcomed” at the bank. “Our operations team is very dedicated,” says Becky Kidby, head of regulated underwriting. “Where we have to move quickly, whether it's a price change or it might be a tweak to a product, [or to] Anita's team, it kind of goes without saying—they're there,” she adds. “We're not scared to challenge each other. Everyone comes to a meeting able to challenge, and we cascade that down through the division; when we stakeholder manage, we adopt the same principles,” shares Sundeep.

BRIDGING GOES COMPLEX On the underwriting side, Becky has observed trends that reflect how far bridging loans have come. “When you describe a bridging loan, you give a basic example of what a bridge is there to do. But, actually, many of the types of cases that we see now are far from that. They're more complex. The rationale for that bridge is more in-depth and needs a greater level of understanding, and the exit may be even more complicated. When I first started in bridging, it was typically very simple bridging deals. I think we've come a long way since then,” she acknowledges. On the unregulated space, Helen Wakeford, head of unregulated bridging underwriting, says, “technology and the level of competition in terms of what we’re offering have been challenging”. For Becky, it’s “a close race in the bridging market when it comes to rates—something that historically would set a lender apart”. In 2025, UTB’s goals are clear. “Be visible and be transparent. If we're not able to do a deal, then it's a quick decision and a quick no for that broker—that keeps the momentum going, and the brokers understand that sometimes it might be a no. Then it's on to the next one. That’s how we work,” says Becky. Helen emphasises the need to pay attention to brokers’ feedback to improve their underwriting and processes. “It’s all about making sure that we're doing what's right for the broker and the borrower,” she adds. Now I understand the bank’s vision for the year ahead. We stay seated for a little while longer with some light-hearted chat. This is when I learned that Sundeep was involved in a bhangra dance-off at an internal summer party UTB hosted last year. Apparently, much to his team’s surprise, Sundeep won. After a short office tour and admiring the bank’s view of the London skyline, I end my day with one key takeaway—it will be worth keeping an eye out for UTB’s power teams. Personally, I look forward to seeing Sundeep’s showstopping bhangra dance at the B&C Awards.

Anita Kirkbright

Mar/Apr 2025

In Conversation

DEALS REALLY WORTH LESS? ARE SMALL

When it comes to lending small loans—deals under £100,000—are brokers ignoring them and eyeing up the big bucks instead? If you think they’re not worth the effort, could you be overlooking the potential value?

Words by

DHUHA AL-ZAIDI Photography by

ALEXANDER CHAI

Bridging & Commercial

Left to right: Narinder Gill, Gindy Mathoon and Shazad Ahmed

sit down with three brokers: Narinder Gill, senior associate at Coreco Commercial Finance; Shaz Ahmed, podcaster and director at Elan Property Finance; and Gindy Mathoon, senior adviser and founder of Create Finance. They fill me in on why some brokers and lenders might opt out of humble loan sizes and how doing this means they could be losing out on major financial opportunities, all while reducing their risk. In this discussion, they talk about fees and fairness, being undermined by lenders, why brokers are crucial to certain services, and achieving expertise on the complexities of specialist lending.

In Conversation

Dhuha Al-Zaidi: What have you observed when it comes to brokers' and lenders’ approach/appetite for small (below £100,000) bridging deals? Shaz Ahmed: When it comes to lenders or lending, a lot of the time there are minimum loan sizes, which tend to start from £250,000, and that then straightaway rules them out of having smaller loan business. Some lenders that do the smaller loans, instead of having a percentage-based fee, they'll have a minimum fee that they want to make in terms of a margin. So, financially, it may not make sense for the client. But there are lenders available. It’s just a case of lenders needing to make money, and on a smaller deal, if you’re doing it percentage based, perhaps that financial reward isn’t there, so they don’t see it as attractive. I don't want to speak for other brokers, but I do know when clients come to me, sometimes they'll show me terms or quotes they've had from elsewhere and I'll see that brokers have loaded their fees because it's a small deal or they've not had the service that they possibly would have had if it were a large deal. The feedback we get is that the broker was slow; they passed it on to someone else. So, they may be neglected because the financial reward on that small deal maybe wasn't as high as with a bigger deal. Gindy Mathoon: The space that I tend to deal with is loans that hover around the £200,000 mark, however, we will regularly process loans below £100,000. What I’m observing is that exit fees will be applied at redemption for the loans below £100,000 from a large number of lenders. I’m not here to name and shame; everyone knows who in the industry puts exit fees on. As Shaz said, lenders have got to make it profitable, and then they’re slightly rate loading as well. So, loans below £100,000 can carry a slightly higher rate, compared to a loan above that figure. Lenders will justify this by saying that it’s due to time and effort, whether it's a £1m loan or less, the same time and effort goes into each application. Narinder Gill: Smaller-sized loans are well supported, but probably could be better supported in the industry. I think the lenders that are in that space are well versed and well experienced in dealing with these types of properties and lesser loan requirements. I feel that there is probably a slight premium in being able to use their services because there's a lack of competition. Competition is great, in my opinion. You need competition in all areas and spectrums of the market. But there are three or four lenders we go to if the loan is, say, £100,000. You know first-hand it’s not going to be your larger banks or some of the other lenders you’d typically go to for a much bigger loan, and that’s where I think there’s maybe a slight issue. But, at the same time, there's got to be a minimum net return for the lender and, if they can do that for a combination of rate-loading and fees, we’re fortunate enough to have them there, because we need them.

GM: Interesting because it’s not just lenders, it’s brokers as well. I suppose you’re used to what you’re used to, right? So, if you’re used to dealing with £500,000-plus bridging loans, and then suddenly you get one that’s less than £100,000 land on the table, that’s why you see what Shaz mentioned there as well, you see either rate-loading or an adjusted broker fee. So, yes, I suppose everyone’s got to put food on the table. Do I think it’s right? Loading below £100,000—not at all. That’s really because, when I first started advising on these products many years ago, most of my loans were below that. So, you start with your first-time investor—not everyone wants to buy a security at £500,000-600,000. You start small, and then you scale. And that’s how, obviously, we build our operation here.

DA: Why can smaller bridging deals sometimes be neglected? SA: One of the reasons from a lender side of things is 99% of bridging or short-term lenders don't charge any admin or upfront fees. So, unless the deal completes, until it gets redeemed, they’re not making any money but, ultimately, the cost to them to process that business, pay their admin staff, and pay all the people in the chain is the same as if it were a larger deal. From a priority perspective, it will not come top. I had an instance last year with a smallish, £150,000 loan enquiry. Things were going quite slowly. I tried to chase it with the lender’s BDM and he came back and said, “Shaz, look, this isn't a particularly large deal, we’re not making much money from it, so it's not top of our list”. So, the attitude perhaps is, if they’re not making X amount of money from it, it’s not going to be prioritised. But that's maybe from a lender's side of things. From brokers, I agree with Gindy, it shouldn’t be neglected. I don't know why, because I often find the people who do smaller deals do them more regularly. So, if you are working with them, you become the finance arm of their business, and they’ll just trust you to get on with it, and they’ll come back every other month to repeat multiple times until, at some point, it becomes larger deals. GM: They’re pain free as well, the smaller loans. So, we’ve got a group chat, by the way, it’s really fun. All we do is talk about bridging and commercial finance. Sometimes, I put the odd joke in there that no one laughs at. [laughter] Anyway, Shaz asked us what our top three lenders were last week, and everyone had an answer. So, if you look at the ones that are at the lower end of the market, you've got the common ones that are tailored towards the lower end of the market, and you've got Narinder who’s got slightly different favourite lenders. So, yes, it’s quite interesting.

Mar/Apr 2025

In Conversation

SA: Gindy mentioned earlier that maybe it’s less work or it's a smoother process for a small deal. With the clients I get, maybe because of the way I lead, they are people who don’t have any assets or money themselves—they’re using investor funds. Therefore, even on a smaller deal, every single penny and pound counts. So, if it gets a down valuation or something like that, or if you just tell them what the fees are, they're scrambling because they don’t have access to a lot of cash. NG: I personally have found that on lesser or smaller loan sizes, the clients tend to be less experienced and need more of a handhold. And that's why I feel, on my part as a broker, I can justify charging X amount as a fee due to the extra handholding and work that the case and client will need. In fact, probably some of my most difficult and consuming loans have been smaller ones—which deter me when a new case enquiry comes on my desk—because some of the larger loans that we work on have experienced borrowers. This isn't the first time they've done this. They know what hoops they need to jump through, as opposed to when you're talking to an individual who might be less experienced or, in some instances, first time; they don't understand the rationale and justification for why questions are being asked. And they can get quite cold about understanding and satisfying underwriting and credit queries—it doesn’t soften the journey and often makes approval harder.

“My question, though, is: how much is enough? How much is the value that you’re giving?”

GM: I’ve got a solution for you. Just send them one of Shaz’s videos. It explains everything. [laughter]

DA: I love the promo. What impact could struggling with securing finance for smaller loans have on the wider health and growth of the bridging market? GM: I sat with a common lender the other day, and they said: “Why aren’t you using us?” I’ll say: “Well, it doesn’t fit the minimum loan level because I’m focusing on the Midlands, North, and Northwest area.” We do have clients down south, but the majority are in the latter. On the refurbishment stuff, the minimum loan, day-one plus obviously the minimum tranche of funds aren’t being met—the deal just doesn’t work at all. So, unless you drop your minimum day-one advance, the likelihood is that you’re probably not going to see many transactions from me, unfortunately. Then, if you think about the HMO conversions down south, you might see a property valued at £600,000 and the cost of works at £300,000. Fine, that works.

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Whereas in the Northwest, in the North/Midlands, it might be a purchase price of £120,000 and the cost of works might be £250,000. Now, that's exceeding 100% of the value of the property. Lenders just don't like that at all. So, it's hard for one lender's policy to fit regionally. SA: Just to add on to what Gindy said, I’m not sure if he remembers, we were at the NACFB last year or the year before. GM: Yes, we held hands. [laughter] SA: We were best buddies. When we go to expos, or if they have lender meetings or the outreach to try and get business, one of the first things they say is, “Our maximum loan is X,” and I’m like, “Look, turn it around, what’s your minimum size? That’s the area that I’m more concerned with”. Often, the BDMs are great. The people who are representing lenders are amazing and really nice people but, when they ask why you are not giving them business, it’s like Gindy said: well, your minimum loan sizes. We’ve got a lot of clients who are just not hitting that. In terms of an impact on the wider health and growth of the market, if you've only got, say, a handful of literally four or five who are in the sub-£100,000 space, ultimately it becomes a monopoly. It’s a lack of competition, isn’t it? NG: I’ve had very interesting conversations with more than one lender, that have told me: “We want smaller deals to reduce our average loan size. Our exposure is quite high. We've got some chunky loans out. We want to soften the risk profile within our loan book.” We need lenders not to neglect the smaller end of the market because it’s upholding some of the mid-term and larger-term loans. We’ll have lenders come in, and some of them have what they call panels of brokers that have access to non-advertised rates and products. They will quite commonly have lesser loan sizes available than what’s advertised on their website. They’ll do so with a view to bring down their average loan size, and lenders acknowledge it and want it as well. I welcome the idea of lenders wanting to work with trusted and proven businesses and brokers.

DA: How are broker fees (including procuration fees) being charged for smaller deals, and are they fair? What instances have you seen that you feel are unfair? SA: When I first started in specialist finance, which is not as long as these guys with way more experience than me, typically, bridging lenders would pay 1-2% of the lending amount. Things have changed. I think now there's a minimum of 1.5%. 2% seems to be common and, sometimes, even enhanced proc fees are available during promotion periods, or lenders pay their preferred brokers 2.5%. It’s not very common, though. That seems to be across the board, whether it's a large or small loan. I've had lenders come back to me and say, “Shaz, because it is a small loan, the

“Abortive fees don’t really get spoken of, but there are a lot of cases that don’t complete, and that’s probably left a sour taste in individuals’ mouths”

In Conversation

DA: Is the value of work proportionate to the size of the deal? GM: Yes and no. procuration fee that we pay has to be reduced for us to make more money”. I've seen that happening. It’s not the end of the world, every deal counts, but, yes, I’ve definitely seen that happening where there’s a disparity between a large loan and a small loan with the same lender and what they pay you as a broker. In terms of broker fees—and these can vary as everyone's got a different business model—some brokers don't charge at all because they make enough money from the back end of a big loan but, on a small loan, they would charge a certain amount because they want to make a certain amount of money. I think there has been a wider conversation around valuing what you're doing for clients, which is fine, I totally agree. My question, though, is: how much is enough? How much is the value that you’re giving? Personally, if I ever make more than £5,000 from a deal, I'm like: am I really adding more than £5,000 worth of value in that client’s life? Probably not. I'd be hard pressed to write a paper against that. NG: I’ll give you an analogy. If you're buying a house to live in, you need a lawyer. What's the difference in a job that a specialist lawyer will do versus a high-street conveyancer? Not a lot on a traditional conveyancing case, but a big difference in the fee. Why? They’ll justify on their part probably on service or quality of advice, probably a combination. There are also operational costs of businesses and brokers that differ and will be reflected in the costs. This is quite prevalent in finance broking. You might have brokers out there who will choose not to do a high volume of cases, because they want to keep closer to their cases and may choose to pick up more complex work only. You will have some brokers who are more comfortable taking on simpler cases and are able to take on more volume. That’s fine, you just need to find the right fit of broker within your team of trusted advisors. You might as a business be better equipped to take on a volume of cases and therefore not need to charge higher fees. It depends on the broker, the brokerage, how they're set up as a business and what their model is. I’ve seen many incidents where individuals were charged no fees, minimal fees, admin fees and whacking fees. It depends on the value you can justify to the client and, ultimately, what the client’s prepared to pay.

SA: I think maybe your question is about when brokers’ fees are percentage based, as opposed to fixed. Let’s say it’s on a £50,000 loan. Proportionally, I’m going to get paid less than on a £1m loan. And, the question is: are you doing less work on a £50,000 loan because you're going to be paid less than if you're charging 1% on £1m? I don’t think you work harder on either deal, because the £1m deal may not complete. The work is the work and, ultimately, the skill you’re giving is a skill you’re giving. I, personally, just for my business, am not charging a percentage of the loan. I would find it hard to justify. I'm sure you can, if you really sat down and did it, but I’d find it hard to justify because it's me telling the client that I'm charging a percentage of it, and the scales don’t make sense. GM: Yes. We operate a fair fee policy, really. The reason why we charge a fee is, we want people who are committed to using us. We tend to take a portion of the fee upfront, and we’ve got a flat fee policy, whether it’s £50,000 or £500,000. We’re consistent in the fees we charge. Ultimately, that person that you wrote a £50,000 loan for might bump into a person on the street that we’re writing a £250,000 loan for. We want to make sure that if they do cross paths with each other, the same fee was charged—and not based on the loan. SA: One thing I want to add as well—and it would be good to have your thoughts, boys, because we haven’t spoken about it in the group chat—is I’m seeing a lot more brokers, estate agent brokers, high-street brokers, who don’t do specialist finance or bridging, but are trying to do it. So, they’re just doing it because they know it pays better, but are getting things wrong. Sometimes they’re doing it without a fee because, ultimately, they can win the business. I think there's a risk to doing it fee free because while you may win the business, you have no clue what you’re doing. NG: I think broker fees are a double-edged sword. They can be used in many ways. I like the idea of fair and flat fees. I think it's very equitable and just. It’s good. I’m not deterred from that. I think we’ve all said, again, it comes down to business models and perceived value. You might as a business be heavily reliant upon introduced enquiries and leads, and on that basis, there might not be enough meat on the bone within a case to share with an originating broker or enquiry provider.

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In Conversation

So, that’s then, in my part, a mechanism to bring the case to a value where it's in everyone’s best interest because you don’t want a broker or someone taking on the case where they might mis-service that enquiry because they don’t see the value in it. And that’s dangerous because the only person who’s losing out there is the client, the borrower. SA: True.

DA: What are your thoughts on fee-free brokers? SA: I think we’re worth every penny! That’s a joke. [laughter] Ultimately, they have to make money, somehow. When it comes to short-term lending, all brokers get paid procuration or commission, regardless of whether broker fees have been charged or not. So, a fee-free broker is relying on the case to complete before they get paid. That could take three to six weeks for bridging or maybe even longer, depending on various things. So, yes, they're incentivised to get the deal completed, because they need the money in but also, sometimes what I find is they are churning business. So, they’re just taking everything they get, maybe without the right expertise, from big loans to small loans—just to get them in. It’s kind of like a factory sometimes, but I’m not saying everyone does this. If you are based, perhaps in London and doing London deals only, then the procurations you would get would probably be enough for you to sustain not charging a fee if that was your business model. But, generally, the fee-free brokers that advertise on certain channels might intend to be like factory models, just churn and burn, not giving attention, and you won’t find perhaps people like Narinder and Gindy who are, individually, good brokers. You'll find maybe the firm that's recognised in the field but within that firm, do they have superstar brokers?

“If you’ve got an individual who has successfully scaled from borrowing £50,000 to £100,000, it won’t take long before they’re looking at alternative conversions, HMOs, multi-units or semicommercial. It’s making sure that you were there at the beginning, so they don’t forget you as they grow. The right clients don’t forget”

GM: I’m an advocate of charging a fee—value your time. I always say price is what you pay, value is what you get. I've worked for a business that was fee free previously, so I've been through the mechanisms. They’d say I've shopped around, lender X can offer

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me this. What can you do? You ought to take fees, if I’m honest. It allows you to give a fully focused service and it also gains commitment from the borrower. So, I'm an advocate. This is what we will provide you; these are the processes. This is where we’ll get you to. To do this, this is what we charge. NG: I’m going to compare models to lawyers. I’ve seen first-hand lawyers purposely outpricing themselves to not pick up a case because either they are (a) busy or (b) don’t want it, which is fair. That’s their choice, their prerogative, and I think brokers have the same ability and prerogative to decide (a) do they want to do the loan and (b) do they have the capacity. Is it within their comfort level or will they need the services of support, i.e. another broker around them, to split the case? Again, it’s a tool. Use it how best you need to, not to the detriment of the client, but for the best outcome. If that means you want to take a case on because you're quiet and you don't want to charge any fees, then that's your choice, if you feel like you've got the capacity to do it. If you realise this has got a lot of work, there are a fair few moving parts, great, apply a fee accordingly. We also need to do a better job of abortive fees. Abortive fees don't really get spoken of, but there are a lot of cases that don't complete, and that's probably left a sour taste in individuals’ mouths and therefore, on their next deal, they want to charge fees. The structure of fees is really important, upfront, on offer, on completion, abortive. I think that's probably something that brokers need to be looking at in a bit more detail. GM: And stay consistent. NG: Definitely.

DA: What can be done to encourage more bridging lenders to accommodate smaller deals? GM: Bring the minimum loan size down. That’ll be a start. NG: Maybe a small loan product guide; there might be one already, correct me if I’m wrong. Maybe a product suite catered to loans of less than £300,000 only. I don’t know how they could do that—maybe fixed arrangement fees, fixed amount fees, lesser admin fees—but have a catered product suite to that area of the market. SA: Yes. I do a lot of the smaller stuff. I have seen lenders who have specific ranges for smaller products, or they'll have a structure where they'll just price some of the fixed fees higher. I think it would help if lenders understood the risk of a smaller deal: if it’s a £50,000 purchase in south Wales and you're lending £37,500 and it goes completely wrong, you

In Conversation

might have lost £37,500. Compare that with a £1m deal in London—if that went wrong, your exposure is a lot greater. So, potentially employing things like automated valuations, lenders need to have a USP. We speak about this a lot, but a lot of lenders are funded by the same lenders on the back end. There are no real unique features, but things like dual-rep legals to make the process go quicker help because, really, no one wants to be waiting eight weeks for a £50,000 loan. So, having the product range is fine, because it's clear and transparent, ‘This is how we're going to make more money, this is what we’re doing, this is the fee’. But within that is an understanding that smaller loans need to be turned around more quickly. They’ll be redeemed sooner as well, because the projects don’t take that long. We need to know more about the kind of deals people are doing with borrowing that little money. How quickly can they pay us back? How many of those are defaulting, or is it good business?

£100,000, it won't take long before they're looking at alternative conversions, HMOs, multi-units or semi-commercial. So, it's making sure that you were there at the beginning, so they don't forget you as they grow. The right clients don't forget. SA: Yes.

DA: You're all based in different parts of the UK. Can you share what the lending appetite looks like in your region when it comes to loan size?

DA: With client appetite for smaller deals evident, how can more bridging brokers cater to this business?

SA: I’m in south Wales. The majority of my business, actually, is in the Midlands, but I do enough in Wales as well. Everyone says they lend in England and Wales, but a lot of the lenders don't have the local knowledge around the fact that all of Wales is covered by Article 4, for example, little things like that. There’s a lot of Japanese Knotweed in Wales, and a lot of coal mines and mine shafts. These are things that I know because I was born and bred here—all things that a local lender would know. It is funny because there are a lot of brokerages here as well, a lot of packagers, so there is a lot of finance in Wales, but the only thing lacking is that local knowledge from a lot of lenders, that perhaps sometimes are very London centric. They will lend in England and Wales, they will do it, they won’t turn it down, but if push comes to shove or the valuer’s made a comment and now, they need a bit more of a specialised opinion, they just don't have that knowledge.

SA: A lot of it is education and going through the process, and helping them understand that small bridging loan clients will come back to them, ideally, for refinance. So, they're getting two applications for the price of one. Also, smaller loan clients do a lot of repeat business. So, within a year, they’ve become portfolio landlords, and then they might end up buying five or six properties. One of my biggest investor clients bought 15 properties in nine months—and that’s in south Wales. All the loans are less than £100,000 initially, so they become regular clients. They tell everyone else about you because you've done so much business, and you can get more business through word of mouth. So, it's just, again, making people aware that it's not just this one small loan. There's so much more opportunity that comes off the back of it.

GM: I'm based in Derby, so I do a lot of lending in Derby, Nottingham and the Northwest as well, like Manchester, Greater Manchester and Lancashire regions. There are a lot of HMO conversions. So, what we tend to see is that the cost of refurbishment tends to exceed 100% of the value of the property, and only certain lenders cater for this, probably two or three lenders get the HMO conversions. So, they’ll probably get a phone call from me seven, eight, nine, even 10 times a week. I tend to bring my business there, including auction purchases as well. Typical transaction sizes tend to be around £200,000 for a simple bridge and double that figure for a refurbishment deal. So, once again, it goes to certain lenders, purely for the fact that we need to complete auction purchases in 28 days. But I'm happy. I love my small lenders.

GM: Transaction numbers are due to rise on bridging commercial anyway, and if you look at the investors that are buying in around the Midlands, the Northwest etc, they often tend to be based in London. Landlords or investors in London, anyway. It’s too expensive to buy in London. Rental yields aren’t great. So, the further north you go, I'd say the rental yield is probably better. That’s probably the truth. So, the size of the opportunities is potentially massive. Drop the minimum loan size, and you might get some business from us.

NG: NG: I think one of you chaps made a really good point earlier about the start of the journey and scaling up. If you've got an individual who has successfully scaled from borrowing £50,000 to

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In Conversation

NG: Our business is based in London, in the City. I’d say predominantly most of the lending I see is in central London with a Greater London reach, being very central as far as the M25 and potentially the Home Counties. So, it’s very much London and Southeast driven. Anything outside that space will typically be in the Midlands, maybe Manchester or some of the larger cities in the UK. That's where our clients are generally looking or have purchased, where a lot of our enquiries come from.

DA: What sort of bridging lenders are focusing on certain regions where average loan sizes are lower? SA: Lenders that are based in those local regions; for example, in South Wales, the two that come to mind straightaway are Signature Finance and RedKite Lending. So, them being in Wales means that they know about the local market and any quirks, essentially. But it doesn’t mean they’re the go-to. Obviously, if the deal works better somewhere else, we'd go somewhere else. I don't think, if I'm honest, lenders specifically focus on regions because, ultimately, they don’t want to rule out the rest of the country. There’s business everywhere. So, I don't think that market exists where lenders focus on one region, especially if loan sizes are lower. No one wants to do lower loan sizes, as far as I can see.

“It is a little bit short-sighted to focus geographically on certain parts of the UK with concentrated exposure to local markets. You might have an event happen or a major employer close, for example, and suddenly 30% of your loan book is in jeopardy”

NG: It is a little bit short-sighted to focus geographically on certain parts of the UK with concentrated exposure to local markets. You might have an event happen or a major employer close, for example, and suddenly 30% of your loan book is in jeopardy. So, I think, as a lender, you'd be prudent to spread your lending blanket over the whole of the UK. I have heard comments in the past where a lender has said, “We’re not looking to place any lending in that area because we've got some exposure there”. It is interesting to see that lenders will take note of where their current loan exposure is and say, “Sorry”. They might have some heavier risk weighted loans there, and they'd rather get those redeemed before they put more out in that area. SA: Interesting. Guys, I've got a question, and sorry, I know I’m hijacking your session here, Dhuha.

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DA: [laughter] Go for it. SA: Guys, let’s say I’ve got a south Wales BDM and they're getting smaller deals in their patch. Are they targeting the same as a London BDM, who will just naturally get bigger deals, or are they targeting in proportion with where they are? NG: I'd think they would apportion targets relative to what they've done in that area historically, what they want to do and what they feel they can do. I don't think it's fair for someone looking after the Northeast/Northwest to have the same loan targets per annum as you would in the Southeast because, naturally, property prices are loan amounts are higher down south, and the closer you get to London, as opposed to where you are. It might be in Lancashire, for example. So, it’s probably not very fair.

DA: Why are brokers still vital for small bridging loans when it comes to cost and quality? SA: Brokers are vital for any kind of specialist finance, if I'm honest. In bridging, a client could approach a lender directly, and there are a lot more lenders now that are actively looking at taking direct business. From a client’s perspective, what you'll find is that lender A isn't going to say, “If you go to lender B, they’ll do a better deal”. So, you’re not going to get—and I hate this term—but you’re not going to get the ‘whole of market’ options because, firstly, you’ve approached one lender. Secondly, with specialist finance, as a client/end user, you have no clue why you're being asked certain things. It's a lot of form filling and firefighting, a lot of back and forth. You need the expertise and the value that brokers provide, because it's not purely about the interest rate. It's not just what the lowest rate is because you’ve got to factor in all the fees and exit fees like Gindy mentioned earlier, as well. And, as I touched on earlier, a lot of non-specialist brokers are starting to try doing bridging finance, and I think that's quite risky. They shouldn't be trying it. They should pass it on to someone who knows what they're doing. I think this is super vital because, ultimately, it's your property project, and investors treat property like a business. You need the right support and specialists in and around your business.

“There are a lot more lenders now that are actively looking at taking direct business. From a client’s perspective, what you’ll find is that lender A isn’t going to say, “If you go to lender B, they’ll do a better deal”

In Conversation

GM: As a business, we deal with a lot of first-time investors who want to do bridging, buy a property or get an 80% LTV BTL. Over the last 12 months we've rejected probably quite a considerable amount of deals from clients because they’ve put their deal together, and we’ve summarised the deal for them like this: by the time you’ve spent the money on the property, interest and fees and your GDV, you’re going to make this much profit, cost versus time at eight to 12 months. So clients value that. Are you going to get that from an individual who sits behind a lender's desk? I don't know at all. I always think that for a first-time investor, you should pay a bit and you’ll get a good service in return.

DA: Do you have any final comments you’d like to make? GM: Lenders, stop dual pricing. Do not market to our clients as well if we’ve done a transaction for you. I’ve seen instances where a client’s gone directly to the lender.

GM: Yes. It's almost like paying for a pizza on a Friday afternoon. [laughter] NG: One thing we haven’t mentioned within all of this, and I think it's quite important, is that a qualification route in this market is not being mandatory. It should be an initial stepping stone into the industry. You’ve got so many brokers now stepping into this area of the market with no prior knowledge or experience of specialist lending. There’s a professional qualification- the Certified Practitioner of Specialist Property Finance. It’s a FIBA-accredited course. Get it done. It's not a lot of money, and it gives you as a broker tools or at least an awareness of what some of this terminology is. The is a large depth of knowledge needed in bridging and specialist finance, with a course like the CSPF being able to help. Learning by experience is great, but it can be risky for the client and business.

NG: It’s true.

GM: Definitely. On that, I think you can be as book clever as you like, but it's the experiences that matter. Shadow somebody.

GM: Stick to your core values and your principles. We all should do this as brokers. So, lenders should uphold that as well.

NG: Yes, a good point.

NG: I’ve got one interesting comment to make. It’s probably a subject matter in itself because it’s not often spoken of, and that is lenders extending bridging facilities but not remunerating the broker off the back of it. It sometimes feels like you're now competing against that lender when you originated that loan and put it on their desk in the first place. So, they're almost, in my opinion, biting the hand that feeds them, because they now become a competitor to you when you want to move that loan elsewhere or ask them what their stance will be on extending the facility. It's not very commonly seen. But it does happen, particularly in some of the cases that we work on, say, in development finance, where you will get a planning gain or reworked planning, and there is a genuine reason to extend or rebridge a facility. Suddenly, that lender is offering terms to the client that are better than what you can get, and they’re cutting you out of the deal.

Bridging & Commercial

GM: I think that's another conversation, for the next one; the admin fees, drawdown fees, the ridiculous processing fees. NG: You just see random fees, admin: £40.95.

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GM: I've come from a residential BTL background where it’s just transactional. You get a mortgage on a property, pass it over to the solicitor, and then you wait for it to complete.. Whereby here, the difference in specialist lending is you’re essentially holding the client's hand right until the last minute of completion. So many of the transactions, any moving parts; if anything goes wrong, that's it, the transaction can collapse. So, you’ve got to have that ability to be able to take that knock-back or be able to react to make sure that deal's going to complete. NG: Other instances where I'll look at a case and I'll know it'll be easy to get the offer out, the hard work will be getting it completed. If it's complex security or a complex structure, the offer will happen in a week or two. It’s getting it through legals. That's where the work is and that's quite often undervalued. GM: Especially when you see the solicitor who's handling the case... That's a topic of conversation for another day as well!

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Limelight

We’ve wrapped up the first quarter of the year, and to say it was busy is an understatement. Here’s a summary of what the Medianett Publishing team got up to since our last issue—and it involves a lot of good food!

Top to bottom: Andrew Bloom (centre) The Libertine, Liverpool Street Cannes Bridging & Commercial

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Limelight

FEBRUARY: Thursday, 6th: Emily heads to Wandsworth to taste test unique dishes for the B&C Awards. Attendees are in for a treat. Friday, 7th: In prestigious Mayfair, Beth meets with Ortus Secured Finance at 5 Hertford Street for a delicious lunch. Tuesday, 18th: Emily and Beth join Avamore Capital for lunch at the vibrant restaurant, The Libertine in Liverpool Street. Over in Paradise Green in Bishopsgate, Tara tries a fancy Asian chicken salad at her meeting with Shawbrook. We heard it was very nice! Wednesday, 19th: Emily gets hands-on with a site visit to Ditton Manor, and wraps up her day with our B&C Awards sponsor, MFS. Monday, 24th: Megan and Beth are transported to Italy through their heavenly lunch at ‘O Ver St James in Southwest London with Aspen Bridging. Tuesday, 25th: Beth catches up with the Masthaven team at their launch party in Borehamwood, featuring a lot of refreshing drinks, canapes and laughter.

MARCH: Wednesday, 5th: Beth enjoys lunch with Lendhub at Clipstone, in Fitzrovia. Monday 10th - Wednesday 12th: Dhuha flies to Cannes to liaise with clients and report on the ground. Thursday, 20th: Dhuha greets CSBF Capital Partners on a sunny day at the Kitchen at Holmes in Baker Street.

Top to bottom: Ditton Manor Masthaven launch party Masthaven launch party 111

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Backstory

Gemma Roberts ‘I celebrate the daily wins, set realistic goals, and take inspiration from those around me’

emma joined United Trust Bank as a BDM in its bridging sales team in January this year, bringing over 20 years' experience in the specialist finance industry with her. She prepares to source plenty of opportunities with brokers and borrowers in the North and is keen to stand out among competitors

Congratulations on your new role! What attracted you to join UTB? Thank you! UTB has long been dedicated to the broker community, and I value the company’s customer-focused approach, its commitment to integrity, and the strong one-team culture. Focusing on bridging allows me to bring extra depth and expertise to brokers and having the opportunity to work with some familiar faces and an established and successful sales team is a real bonus.

How will you utilise your experience in previous sales and business development roles? Success in bridging finance is largely driven by having strong partnerships between lenders and brokers, combined with a great product and industry knowledge. My career to date has enabled me to build strong, trusted relationships with intermediaries and given me the experience to be able to structure deals effectively. We know bridging isn’t a cookie cutter product. To get a good outcome requires full transparency from the start from broker, customer and lender, and the agility and desire to give a quick but dependable decision. This is always my objective as a BDM.

What specific goals have you set for the North in the next year? My aim is to widen our reach and develop relationships with new and existing brokers. We are already highly regarded in regulated bridging, and this will continue to be an important part of our offering. However, I will increasingly promote what UTB is now bringing to the unregulated space. We have some great products and service features now, are well versed on larger transactions, have a popular heavy refurb offering, and our rates are competitive.

Bridging & Commercial

What are the key opportunities and challenges you foresee in this region, and how do you plan to address them? I’m very optimistic. I think there are more opportunities than challenges for the bridging market in the North as a whole. It is holding its own in terms of property transactions, and property investors are recognising the region’s potential for healthy investment yields and capital growth.

How do you plan to differentiate UTB’s bridging finance offering from competitors in the North? Strong relationships and great service. Putting brokers at the forefront of what we do and listening to constructive feedback to make positive changes—both at the front end and operationally.

What local market trends should people be aware of in this region? The auction market is strong in the North; with BMV sales and affordable properties needing renovation, this gives investors an opportunity to add value and sell on for a profit or retain. We are also seeing a lot of HMO conversions in student districts. We have seen regional variations in growth and demand with the recent rate challenges, and chain breaks and downsizing remain buoyant.

What long-term relationships or partnerships do you aim to build at UTB? I’m fortunate to have some great relationships with some wonderful brokers which I’ve built up over the years. I will ensure we continue to work closely together and further deepen those relationships. It’s important to stay in tune with your broker contacts, your colleagues, and peers. There are also many brokers who’ve never worked with me or UTB and perhaps may not have considered the opportunities for bridging before. I look forward to getting to know them, too.

How do you remain inspired and motivated in your line of work? I celebrate the daily wins, set realistic goals, and take inspiration from those around me. I also ensure I have a healthy work/life balance.

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What’s the funniest thing you’ve ever done to avoid small talk? For me, small talk has a place, especially when I’m starting to get to know someone and I’d hate to appear rude. But, if I was in a social situation and really struggling to connect, I would just excuse myself with the usual ‘must get a drink/ go to loo / oh my friend’s just arrived, be back in a sec…’. Of course, if it was a work event, I could talk about bridging all day long!

What's on your payday wish list? I’d like an Oura smart ring. It’s a stylish ring that also monitors your health. Very clever!

If you could swap lives with any celebrity for a day, who would it be and why? I’m going to say Kim Kardashian so I can be responsible for a fashion and beauty empire, have a glamorous makeover with an expert team, while taking my private jet to the Bahamas!

Bridging & Commercial Magazine —The Trends and Data Issue