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Bridging lender Cheval stops accepting applications

  • 11/12/2012
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Bridging lender Cheval stops accepting applications
Bridging and commercial loans lender Cheval could be forced to close down after failing to gain funding needed to secure its future.

Cheval entered the market in 1995 and is a major name in the bridging sector but has been forced to stop accepting new applications after its funding line came to an end.

It is understood that Clydesdale Bank has taken the decision to close its funding line to Cheval after its parent company, National Australia Bank, decided to focus on other areas of the market.

Mortgage Solutions understands that brokers doing business with the firm are being told that the lender will not accept new cases but will resume lending in January.

However, the firm may be forced to sell its loan book if it is unable to meet its obligations in the coming weeks.

Recent figures from the AOBP suggested that Cheval had around 9% of the bridging market by caseload.

Cheval was unavailable for comment.

Benson Hersch, CEO of the Association of Short Term Lenders, told Mortgage Solutions that those firms in the sector who relied on banks for funding faced problems in the present market.

“Looking at our membership, those who rely on funding lines from banks are finding things difficult at present or are having to turn to wealthy individuals for funding.

“The firms with the most solid backing will be the ones that survive, but any news like this is terrible for the sector and those employed at any struggling firms.”

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