FR: How has business changed on the bridging side of United Trust Bank in the last 5 years?
I have been at the Bank for just under 3 years. In that time we have continued to build the Bridging Loan offering within a well-established and well-resourced bank. By recruiting very good staff and putting broker relationships at the heart of what we do alongside a professional approach to credit, we have established the foundations of a thriving business with the intention of supporting and building the bridging sector for many years to come.
FR: What opportunities has the recession presented for you?
The credit crunch and accompanying difficult economic times have clearly created opportunities for some sectors and businesses such as the short term lending sector. This is a positive aspect of the market economy. For instance, new entrants have been able to commence lending and take security over properties at lower and many would say more sensible values than before the property bubble burst. Equally, the restrictions in lending faced by many High Street lenders has led customers to seek alternative sources of funding and UTB has been able to assist such people.
FR: What do you predict for the bridging sector in the next 5 years?
I am naturally cautious about making predictions given that so many professional commentators and analysts get things wrong. But if one stands back from the current froth and excitement in our sector, I think we will see the continued professionalisation of lenders driven in part by the increased scope of regulated activities. It is inevitable that some lenders will choose to avoid being regulated and this will see the sector splitting into 2 distinct types of lender, namely the regulated and non regulated and this split will be much more marked than today where the majority of bridging loans are unregulated.
FR: With only a handful of regulated bridging lenders in the market, how do you stay competitive?
The sector in all its component parts is particularly competitive and nowhere more so than for quality regulated business at sensible LTVs. As a bank we are able to offer competitive interest rates to customers, but our own research has shown that rates are not the single most important factor in determining whether a broker will select a lender. As, if not more important, are service levels and flexibility. We are particularly pleased to have won several service excellence awards over recent years and believe this is what gives us an additional edge over our competitors.
FR: Recent research from United Trust Bank showed that brokers are branching out from the ‘classic bridge’ – do you think this flexibility will increase interest in bridging?
It should do. We are actively presenting Case Studies to our brokers to show them how this sort of finance can be used in many different ways for many different purposes. From straight forward one property one customer loans for £100,000 to complex multi million Pound facilities involving several borrower parties and portfolios of security.
FR: What has been United Trust Bank’s Bridging Department’s greatest achievement to date?
Building a business based on relationships and sound principles and staying true to these principles. We don’t go in for fanfares and exotic claims. We’ve kept our heads down and built a terrific business with great people, namely our team, professional advisors and our brokers.
FR: If you weren't in financial services what would you be doing?
Probably something legal given that I am a solicitor.
Alan Margolis is the Head of Bridging at United Trust Bank, a specialist lender providing a range of secured funding facilities.
