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Mortgage broker launches bridging advice proposition

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  • 09/09/2016
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Mortgage broker launches bridging advice proposition
London-based mortgage brokerage Enness Private Clients has launched a bridging advice service offering brokers “complete market access” to the sector’s lenders and products.

The service, Enness Bridging Finance, will give brokers access to a lender panel which the firm said will “not be restricted or biased by special deals and relationships”.

Enness will split fees and commissions with the introducing broker, and pledges to discuss cases upfront and agree a collaboration fee.

Enness’s CEO Islay Robinson (pictured) said the market had progressed markedly in the past few years, describing it as a sector once dominated and controlled by a handful of lenders.

“But, it is a hugely fragmented, distorted and complex market, needs real skill and specialism to get it right and the customer’s needs have to be the most important part of the process,” he added.

“Bridging finance doesn’t have to come from heavily advertised bridging lenders and doesn’t have to always be 1% per month. Many of our private banks will lend in bridging situations at 2% over base, some of the secondary and challenger banks will lend at standard retail terms if they understand the position, and then there are hedge funds, private funders and the growing band of P2P.”

Enness’s launch is one of many examples of mortgage brokers diversifying their business models into specialist lending areas this year. Mortgage broker London Money created an advice service for second charge loans to give brokers an alternative to that of the traditional master broker, following the requirement set out by the Mortgage Credit Directive for all refinancing customers to be offered second charge advice.

The change in the regulatory treatment of second charge loans, bringing them in line with first charges, has encouraged many master brokers to rethink their business models. In the past months, a number have restructured how they charge fees, while networks and mortgage clubs have moved to become more embracing of specialist lending, with some firms such as Legal & General, offering brokers access to a direct panel of lenders.

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