Bridging
TSLE: Incorrectly packaged cases put doubts in lenders’ minds – Octopus
A lack of information can make lenders question whether a case is right to take on especially in the current high risk environment, Octopus has said.
Speaking at The Specialist Lending Event (TSLE) online today, James Nunn, the lender’s fund manager, said failing to provide clarity when submitting a case was a common mistake made by brokers and could delay the process.
Nunn said: “There has to be clear information on the property, the location, the purpose of the loan, the borrower and a clear exit.
“A lot of the time we find borrowers or brokers haven’t considered the exit and it’s something that’s very important to lenders. Especially with bridging which for us is one to two year’s finance.”
He said providing comprehensive details helped keep the time from application to completion down to a minimum.
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“If that’s not clearly thought about or clearly communicated to us, it puts a little element of doubt as to whether this is the right borrower or the right loan to be doing,” Nunn added.
“Especially when it comes to situations that we’re currently in at the moment – pandemics or recessions – where lenders are being slightly more particular with their lending.”