CYBG has launched a bridging loan pilot scheme.
Initially concentrating on conventional open, closed and light refurb products, the pilot is being carried out in conjunction with 11 mainly London-based brokers.
The scheme will run for six months before, if successful, opening to more brokers later on in the year.
On the subject of why CYBG is entering the specialist lending market now, head of mortgage distribution Fred Sharp cites the Association of Short-Term Lender’s recent report that describes over £4bn of bridging loans being written by its members in 2017.
“[The bridging market] has been resilient for the last 18-24 months,” he says, adding that the lender believes the market is a central form of finance for supporting the home buying process.
He says that the lender believes the market is currently under served and that, because “we already have a good reputation for underwriting on complex cases,” it makes sense for CYBG to take its first step into the specialist lending market in this manner.
He adds that the lender may well enter other specialist markets in the future, “and the way we will do that is to continue our dialogue with broker partners.”