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Precise vows to clean up bridging with distributor partnerships

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.”

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  • Dave 26th April 2012 at 10:19 am

    Residential bridging loans are regulated therefore unregulated lenders should not be offering to fund residential deals. Are we seriously saying that brokers are using unregulated lenders in this way. Is there any hope left for these guys ?

  • We're all doomed!! 26th April 2012 at 9:38 am

    Have I missed something here?

    Bridging Loans (assuming they are residential and secured by way of a first charge) ARE REGULATED by the FSA. So whilst it is admirable that Precise wish to “clean up” this area, but they are comparing Apples with Pears here, by comparing their approach on regulated contracts with lenders who offer unregulated deals.

    As ever with the people behind Precise, this is a cheap shot at obtaining PR based on bluring the facts.

  • Calvin Oram 25th April 2012 at 3:35 pm

    Hahahaha….can you imagine HSBC trying to produce an offer in time to exchange contracts within 4 weeks, and with them using their “extra” solicitor!