Secured lending specialist Borro has announced that it will withdraw from the property bridging loan market due to overcrowding of the market and ‘decreasing property values.’
The specialist lender has said it will now concentrate on its luxury asset finance activities.
The move follows the resignation of chief executive and founder Paul Aitken last month. Borro has announced that Aitken has been replaced by John Allbrook, former executive chairman of Syscap, with immediate effect.
Of the change in strategy, Allbrook says: “Borro has carved out a unique space in the financial services market and I am confident about future growth.”
“However, the property bridging market has become particularly crowded and this coupled with decreasing property values makes this a pragmatic decision to have reached.
“There is a substantial opportunity to grow our luxury asset finance business both in the UK and internationally. Making this our primary focus will help the business to realise its true potential.”