Streamlining regulated bridging business

Roz Cawood, managing director of property finance at StreamBank, says strong collaboration between lenders and brokers will be essential for market stability and innovation, especially in what is expected to be a fast-moving environment this year.

Related topics:  Blogs,  Bridging
Roz Cawood | StreamBank
27th February 2025
Roz Cawood StreamBank
"While some mainstream banks may be cutting mortgage rates, many continue to tighten lending criteria, creating opportunities for smaller, more agile specialist lenders like us, who focus on the short-term residential market."

Activity levels among residential buyers are harder to predict this year, as January’s inflation figure jumped to 3%, which may slow down Base Rate cuts over the course of 2025.

However, the property and mortgage market remains dynamic for brokers, even as they adapt to pressures such as regulatory changes and the increased emphasis on data collection and reporting brought about by Consumer Duty. Helping clients navigate affordability challenges and potential payment shocks will continue to be a key focus for advisers, particularly with large numbers of borrowers coming to the end of their fixed-rate deals over the next 12 months and beyond.

After a relatively subdued 2024, around one million residential deals are forecast to remortgage in 2025, according to UK Finance, with activity expected to rise 30% to £76bn. The trade body also predicts an increase in product transfers by 13%, reaching £254bn. These figures are largely driven by the surge in five-year deals taken out after the first lockdown in 2020, as well as the two-year fixed rate deals agreed following the ‘Trussonomics’ mortgage rate hikes in 2022, which have been reaching their term-end since November last year.

Taking the bull by the horns

These higher business levels are increasing the demand for faster, clearer, and more flexible mortgage decision-making this year. While some mainstream banks may be cutting mortgage rates, many continue to tighten lending criteria, creating opportunities for smaller, more agile specialist lenders like us, who focus on the short-term residential market.

With a clear lending focus and short decision-making lines from business development managers to underwriters, specialist lenders can provide greater certainty and tailored solutions when clients need them. As a lender that has just celebrated its second anniversary, we understand that speed, consistency, and communication are the key factors in building strong broker partnerships in a fast-moving market.

Brokers need faster loan approvals and simplified processes to help clients secure short-term funding, particularly in cases where mainstream lenders struggle. Specialist bridging, commercial, and development lenders excel in understanding clients who may be perceived as complex by mainstream banks, such as portfolio landlords, the self-employed, and property developers. These cases require expert handling by manual underwriters rather than a rigid, one-size-fits-all approach.

The right valuation

Specialist lenders can also leverage automated valuation models (AVMs) and desktop valuations to maintain risk controls while reducing friction in case processing, particularly for larger residential loans ranging from £500,000 to £1.5 million.

For example, we recently launched our Streamline product, designed for clean-credit cases up to 65% LTV, offering straight-through processing for properties valued up to £1 million using an AVM or £2 million with a desktop valuation.

For brokers with heavy caseloads, reducing administration time allows them to focus on serving their clients. A recent case involved a client needing to raise funds against an unencumbered home to cover a tax bill before the 31st January deadline. The agreed exit strategy was an investment maturing after the new tax year in April. We successfully raised the funds ahead of the deadline, with the broker, Capital B Property Finance, attributing the smooth completion to a strong solicitor panel, joint representation, and a desktop valuation.

Lenders must be more than just finance providers — they need to be trusted partners in helping brokers grow their businesses. Strong collaboration between lenders and brokers will be essential for market stability and innovation, especially in what is expected to be a fast-moving environment this year.

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