We speak to Andrew Fisch, Managing Director at bridging specialists Ranncorp, about the political landscape and plans for the next twelve months.
Do you think the bridging market will continue to see growth?
Absolutely – especially as mainstream banks continue to be cautious when it comes to lending and only focused on plain transactions. In the current climate, LTVs remain constrained and borrower and asset profile must tick all the boxes
Do you think the short term lending market will be affected by the current political landscape and, in the long term, by a Brexit?
Brexit has created political and economic uncertainty. Markets and asset prices dislike uncertainty .the weakness of the pound should stimulate U.K. Export markets and make the U.K. a more attractive place for overseas non sterling buyers of assets
What makes Ranncorp stand out from other bridging lenders?
Whilst Ranncorp itself is a new trading entity, the principal has been involved in the bridging market since 2010 and has successfully lent more than £200 million across almost 300 different loans.
We have a deep understanding of client requirements, client servicing, as well as a comprehensive understanding of all types of properties from residential, commercial, mixed-use and development finance.
Ranncorp has the ability to instruct valuers, solicitors and provide the administration for a loan incredibly quickly and has leading mathematical models to be able to provide borrowers with a variety of answers to their questions at a touch of a button.
If you had to give one piece of advice to brokers working in development finance, what would it be?
Brokers need to both understand and provide as much detailed information as they can relevant to the proposed transaction. This should include purchase price, planning situation, costs and most importantly the experience of the borrower and an exit strategy. The speed of a transaction is crucially dependent on this information and delays or aborted transactions usually result from inaccurate information which leads to valuation issues.
What is Ranncorp’s focus in the next few months?
Rannncorp is focusing on building strong relationships with a few high quality introducers and direct borrowers with whom Ranncorp can transaction substantial business. We have a large amount of liquidity to lend, but in a sensible and disciplined way. Our infrastructure has been built to enable us to manage a substantial loan book.