"In a busy and crowded market, the reassurance that an experienced lender can offer to advisers and their clients alike is invaluable."
We haven’t quite spent the £8m Ms Minogue’s four-bed house in Melbourne has reportedly cost. But I imagine that even the world’s most famous neighbour found the process stressful, as moving house simply is an upheaval, regardless of the circumstances.
One aspect of my home move that genuinely surprised and delighted me was the speed and efficiency of the packing service carried out by the removals company. The prospect of wrapping and carefully storing a family-sized house-worth’s of paraphernalia accumulated over the years filled me with dread, so I booked the full packing service. The removal team did the whole lot in two hours. When I told the gaffer how impressed I was, he simply smiled, shrugged and said: “Experience”.
Of course, experience counts for a lot in many circumstances, but particularly when the stress is on or the issue is important. Like moving house – or indeed buying, refurbishing or converting property. And the busier any market sector gets, the greater the pressure – and the more valuable the experience of those involved.
The bridging market is currently running hotter than ever, having hit record growth in Q4 2021. According to the Association of Short Term Lenders, applications reached an all-time high of £12.7bn in the three months to the end of December 2021, a 65.4% increase on the previous quarter, which was itself a record period at the time. This represents huge growth in the decade or so since Precise first entered the bridging market – industry estimates put the total value of bridging in 2011 at less than £1bn.
Anecdotally, this trend for growth looks set to continue, driven by numerous factors. Firstly, after all those lockdowns and with the rise of working from home, it seems that more people are re-evaluating what they want from their space. Adding an extension or converting a loft can be the answer for homeowners in need of a new study or gym, for example. Remember all of those people fleeing cities for the country during Covid? Odds are some of those rural properties would benefit from a degree of refurbishment. And with estate agents reporting record lows of available housing stock throughout 2021, many aspiring homemovers in need of more space but unable to find a bigger place may also be turning to the option of adding a room or two.
In a busy and crowded market, the reassurance that an experienced lender can offer to advisers and their clients alike is invaluable. And that is perhaps most keenly felt when it comes to underwriting. Bridging applications are often nuanced. The expertise a seasoned underwriter can bring when evaluating a case can make the difference, not just between a yes and a no, but between a rapid turnaround and a painfully prolonged purgatory.
Add to that the other lessons that experience can bring bridging lenders with regards to competitive pricing, fee transparency and an appreciation of the value of not charging default interest, and the benefits speak for themselves. Choosing an experienced bridging lender just might be the smartest move you’ve ever made.
