Precise Mortgages has vowed to clean up the bridging market by partnering with seven key mortgage distributors.
Precise is now a preferred bridging lender for Ingard Financial, Mortgageforce, Pink Home Loans, Personal Touch Financial Services, PMS, Sesame and SimplyBiz Mortgages.
The deal has been struck so distributors can manage their risks effectively in a bridging market that is expected to grow.
Alan Cleary, managing director of Precise Mortgages, says he is partnering with these distributors in a bid to clean up the bridging market which is currently a minefield for borrowers.
He says: “In my opinion many bridging lenders have a different view of what the word transparent means.
“There is a myriad of interest and fee charging methods many of which are not good for the borrower and this is compounded by the inconsistent information provided to borrowers which makes deal comparison almost impossible.”
Precise pledges to treat all lending secured on residential property in accordance with FSA regulation.
Robert Sinclair, director of the Association of Mortgage Intermediaries, re-issued his warning to brokers that any regulated broker should exercise caution when using unregulated lenders.
He says: “I have said before that any regulated intermediary who places bridging loans with an unregulated lender should be very careful, in my opinion all open residential bridging should be treated as though it is a regulated product.”