Bridging lender Bridgebank Capital is no longer accepting what it describes as “desperate” property transactions.

It says that as a direct result of the liquidity crisis it is seeing a significant increase in bridging loan enquiries, which fall into two opposing groups.

In a statement it says: “On the one hand there’s the desperate property transactions where our bridging loan exit can not be comfortably assured, and in this situation we are turning away proposals.”

This refers to bridging loans where the exit strategy cannot be confirmed or it may be hard for the lender to see how the borrower is going to pay back the loan or switch onto a sub-prime mortgage.

It says thought that it is seeing a material improvement in both the number and quality of property finance propositions compared to a year ago.

Where as in the past bridging loans may have been funded by institutional high street lenders, borrowers are now turning to the secondary lending market.

Bridgebank says it has the funds and appetite to finance what it describes as the right deals. And while it's picky about the types of deals it does, it still welcomes any new business.

Source:
http://www.mortgagestrategy.co.uk/