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Bridging is no longer borrowing of last resort – ASTL

by: Benson Hersch
  • 22/10/2012
  • 0
Bridging is not "borrowing of the last resort" - where appropriate and where a viable and financially logical exit strategy is available, it is an important financial tool in the armoury of responsible brokers.

 A bridge gets you from A to B…

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…a gangplank lands you in the deep blue sea!

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Brokers should be aware of bridging, and, when recommending a bridging loan, ensure that they recommend a responsible bridging lender.

In the view of the ASTL, responsible lending should apply to all bridging lending, whether the security is the borrower’s home or not. Bridging is a valuable commercial financial strategy – regulated loans are only one of many applications.

The role of the ASTL is to be a professional trade association, promoting the interests of its members, who are committed to responsible bridging lending.

To achieve this we have adopted a Value Charter which reflects the ethos of our members, as set out in our Code of Conduct and Rules of Membership.

We are actively seeking dialogue and cooperation with the FSA and engaging with them on regulatory matters. In addition, we will liaise with other trade bodies which are complementary to our business.

We regularly keep our members abreast of current and likely future legislation affecting property finance. We are setting up meetings where members and associate members will get together to exchange views and ideas.

Fraud is a major issue in the finance world. We are helping members to prevent fraud through fraud awareness – we have a fraud register and provide access to discounted fraud software.

The ASTL wants to encourage all responsible bridging lenders to become members.

Benson Hersch is CEO of the Association of Short Term Lenders

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