London-based bridging lender, MT Finance, has announced that it is entering the regulated bridging market, with a new offering available to a select panel of brokers.
Gareth Lewis, commercial director at MT Finance, commented: “We feel some lenders have lost sight of what’s important. Nobody wakes up in the morning wanting bridging finance – they have a specific transactional need. Bridging finance is about providing liquidity and getting transactions done within a tight timescale.” Based on this analysis, they offer 3 key areas of improvement for their regulated bridging products.
With this new range of products, MT Finance is aiming to get back to basics and make the process more approachable for their clients. Gareth Lewis comments that they have “stripped back to the essentials of bridging finance”, streamlining the application process.
One of the crucial things that MT Finance has focused its energy on is reducing the time frame involved with seeking funds. Time is often of the essence with these projects and yet the needs of the client are not being met.
Gareth Lewis continues: “We offer a service proposition where we make an initial assessment and come back within one working hour with approval or indicative terms. Within two working hours of receiving an application and supporting documentation, we aim to produce a loan contract and mortgage illustration.”
“A number of brokers have told us that some challenger banks are taking 24 hours to say yes to a transaction on the basis of the information in front of them, with underwriting then taking up to four days. We believe these timescales are unacceptable. Their rates may be slightly cheaper but a client may be better off paying more for a product that better suits their needs. Every bridging client wants to redeem as quickly as possible so we would argue that rate is less important than getting the deal done quickly.”
MT Finance will be working with Positive Lending as their preferred partner.
Paul McGonigle, chief executive of Positive Lending, comments on the collaboration: “We are delighted to be selected as a preferred partner for MT Finance’s regulated bridging division.
“Our business has written thousands of bridging loans and is well known in the market for our expert advice on regulated loans. I have always been super impressed at the service offered by the MT Finance team and I am delighted that their proposition offers the same true value, backed by the very best service. One of our first regulated loans with them was funded in four days from application and it was down to their communication and drive to support us with an urgent transaction. We are looking forward to writing more regulated business with them in 2021.”