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Although summer is synonymous with beach holidays, for property investors, it can present a bit of a headache when trying to get a deal across the line – with a general processing slowdown at the moment, worsened by August’s holiday season. Whether it’s a commercial or residential purchase, from solicitors to agents, there are fewer people working in summer, all amidst a pent-up demand for property. At this point, specialist lenders like Charleston Financial Services Limited’s experience comes into play to support, and sometimes, this can involve working with bridging loan providers like Greenfield Bridging.
In an exclusive interview conducted by Greenfield Bridging, Andrew Blackwell, Head of Sales at Charleston, who recently joined Pivotal Growth Group of companies, shares insights on making the most of these opportunities without letting them slip through the net and why a single point of contact is a game-changer.
Specialists Understand Commercial Challenges
Charleston Financial Services focuses on specialist markets such as buy-to-lets, short-term funding, and HMOs. Andrew said, "We work in the complex lending market, which covers markets and customers that your average broker wouldn’t pick up." This specialisation allows Charleston to cater to investors looking for quick and efficient financing solutions tailored to standard and non-standard property investments. Understanding the nuances of the specialist lending environment and having experience and relationships with bridging lenders can help get a deal over the line.
Bridging finance is a key tool for investors who need quick access to funds. Andrew explains, "There's quite a lot of nuances in various parts of the market such as HMO or short-term lending... and during our 16 years of trading, we have covered pretty much every scenario you can imagine, so very quickly we are able to come up with a solution and strategy to ensure that people get to where they need to get to as quickly as possible." This expertise is crucial for investors who need to act swiftly, particularly in competitive markets.
The Importance of Education and Service
Andrew emphasises the importance of providing clear explanations and helping to educate clients about the realities of bridging finance: “You can see these headline rates look very attractive, and our job is to take people away from the shiny headline and bring them to the lender that will get the job done." Charleston's approach ensures that clients understand the full picture, including potential costs and timeframes, allowing them to make informed decisions.
Common Uses of Bridging Finance
Bridging loans are versatile and can be used in various situations. Andrew highlights several common scenarios:
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Chain Breaks: When a property sale is delayed, the buyer must move quickly.
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Refurbishment Finance: For properties that need significant work before becoming mortgageable, or where the customer is looking to add value or obtain a change of use - for example, changing a standard dwelling into a HMO.
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Auction Purchases: Providing quick financing to secure auction deals.
Andrew notes, "In the current market, a lot of investors are looking to maximise capital value appreciation at the start of a transaction where someone's going to have to invest a bit of time and money into the property. So they need a short-term loan to facilitate that, quite often they will look to us to then provide a term mortgage if they are to retain the property, in order to benefit from the value added."
Misconceptions About Bridging Finance
One barrier to using bridging finance is the perception that it is prohibitively expensive. Andrew addresses this: "I think there's maybe a perception from people who don't know the market that well that bridging is incredibly expensive...the cost differential isn't as dramatic [now]." With residential mortgage rates closer to 4-5%, the difference between traditional mortgages and bridging rates has narrowed, making bridging a more viable option for many.
A Single Point of Contact
Charleston Financial Services prides itself on providing exceptional service. Andrew states, "Having a point of contact that you can speak to at any given time...is key really to everything when dealing with bridging lenders." This commitment to accessibility and responsiveness ensures clients receive timely support and guidance throughout the lending process.
A standout partner in this regard is Greenfield Bridging, known for providing a single point of contact to support clients throughout their bridging loan journey. Andrew praises Greenfield's approach: "It's nice to know that Greenfield does provide this. You've got a single point of contact that you can pick up the phone to almost always available and certainly comes back to you if they're not to provide you with that sort of instant feedback that you need."
Preparing for Summer Opportunities
As we head into the holiday season, the property market can slow down, making it crucial to be prepared for any opportunities that arise, for example, auctions. Andrew advises, "We always encourage people to try and get as far as possible before they get to an auction , this enables the customer to attend, ideally with a firm lending approval so that they can go in there with some real confidence."
Richard Keen, National Sales Manager at Greenfield Bridging, added, “By understanding the benefits and uses of bridging finance and partnering with Greenfield Bridging, brokers and investors can capitalise on this summer's opportunities without letting them slip through the net. Our BDMs are mandated as underwriters, which means a quick, qualified decision.”
If you’re unsure if bridging is right for your client, call – Greenfield Bridging only lends if it’s right. Call 0800 779 7097 or email info@greenfieldbridging.com to get a decision in one hour.
