Fincorp director Nigel Alexander says the decision is in direct response to the volume of enquiries we have been getting this year from brokers who want to be able to do deals at this level for their clients.
He says: “We’ve always been up front that if we can’t do a deal we’ll say no, and quickly. But it seems ludicrous to keep turning down loans to good clients, particularly as we want to give brokers the confidence to put bigger loan deals through Fincorp.
“Simply put, we want to be able to say yes more often and this seemed a sensible and commercial way to do that.”
Fincorp is now able to offer bridging loans from anywhere between £100,000 to £5m.
Alexander believes there are more people who see the value on offer by refurbishing auction properties for example, but that there is also a growing desire to be careful about how much debt they take on in one go.
He adds: “Although the banks are exercising caution and not repossessing properties left right and centre, there has been a lot of activity at the smaller scale end of the property market.
“It simply makes good business sense for us to be able to offer finance at this end of the scale too – and hopefully once people see how well bridging works at this end of the market it’ll build their confidence to do more in the future.”