Precise Mortgages director of sales Roger Morris, participating in a panel discussion at The Mortgage Event, said the majority of bridging lenders’ operations involved “horrendous” fees and exploitation: “I think bridging should be regulated – it’s the next big mis-selling [scandal],” he said.

He also questioned the practice by many bridging lenders of using two lawyers: “My personal belief is the reason they require two lawyers is because their contracts are too onerous to stand up court.”

In an earlier speech at the event, Morris made the case for bridging loans as a tool for professional landlords, such as funding refurbishment of one property from equity released from another property in a portfolio.

Providing photographs of the building before and after, lists of planned works and other evidence of refurbishment could help any suspicions about possible fraud, he advised.

For full coverage of the event, click HERE

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