Frequently asked questions of Holme Finance Bridging Solutions (HFBS)

What Happens if the Loan Becomes Term Expired?

We encourage clients not to consider a bridging loan unless they are confident of redeeming within the term however we do understand there are occasions when the client is unable to redeem in time. We work closely with the client and the introducer during the term of the agreement and, if unable to redeem in time, we will generally agree forbearance provided the client is taking reasonable steps to correct this. We do NOT have a Default Rate therefore the existing contractual rate will continue to apply however additional management charges will apply. A copy of our Tariff of charges advising you of these costs is included in the documentation you sign and is available earlier on request.

What if the Existing Mortgage Refuses Consent?

Subject to loan size, loan-to-value and exit strategy, we will consider lending without a prior mortgagees’ consent. In these cases, we will require the client signs an agreed notice (AN1) and a restriction (RX1) in order for us to obtain security.

What Security Will You Consider?

We will consider a 1st, 2nd or (in exceptional circumstances), a 3rd charge on residential, buy-to-let, land and semi-commercial/commercial property, provided the advance fits the definition of an exempt agreement within the FSMA. We do not have a minimum valuation, but will often restrict LTV on land, which you consider commercial and lower value/poor quality properties.

Why Do Your Product Terms Have the Rate Quoted in Bands?

We consider every application on its merits. The actual rate quoted will depend on many factors, including: location, property type, client status, loan size, LTV, 1st/2nd or 3rd charge, etc. We will always confirm the rate day one and (subject to no change in circumstances), stick by this.

Do You Consider Adverse Credit Status?

We consider all client circumstances. Where a client has clearly had difficulties, we will require that it is demonstrated how our advance will benefit the client and how realistic an exit strategy they have. We are looking to assist a client, not add to existing difficulties.

What is an Exempt Agreement?

This can be quite complex, but as a general rule, most buy-to-let, land, commercial and semi-commercial applications are exempt. In addition, a 2nd or 3rd charge on a client’s own home over £25,000 and primarily or wholly for business purposes would count as exempt. Business purpose could include raising capital to purchase a BTL or for refurbishment of an existing BTL (together with meeting cashflow), purchasing equipment or paying business liabilities, such as HMRC demands.

Do You Lend Regulated Loans?

No, we will only make an advance which fits the definition of an exempt agreement.

I Prefer More Involvement With the Application, How can this Work?

The client is, and always will be, your client. We are happy to discuss ways in which you can retain that relationship whilst the application is processed. Your level of involvement can be tailored, and in certain circumstances we will allow you to handle many of the processing issues, such as settlement figures, consent and valuation. However, we will always need to speak to the client day one, and whilst you can be present, our representative will always need to visit the clients home address and witness signatures.

If You’ve been Around for so Long, How come I’ve Never Heard of You?

HFBS has long been the industry’s best-kept secret. Whilst we have been active in the short-term loan market for longer than most, we have concentrated on a small number of larger distributors, enabling us to manage our lending volumes carefully.

Do You Lend to Limited Companies/Offshore Trusts/Pensions, etc.?

No. In order to keep as simple and quick a process as possible, we only lend to individuals.

How Do I Make an Application?

We are a small, experienced team and make no apologies for doing business the ‘old fashioned way’. Our preference is, and has always been, to talk, so pick up the phone! Alternatively, we appreciate that there are occasions when a deal is a little more complex or you wish to supply supplementary information. In these cases, you can email us an outline of the case or complete our online application.

Who Are Your Principals?

Our senior directors are David and Ian Broadbent, who have between them over 65 years financial experience.

So Why Are You Looking to Increase Your Distributors?

The success of our model means we have received a considerable increase in our funding lines and wish to increase, via the addition of quality introducers, our volume.

Are You a Principal Lender or Just Another Broker?

We are not only a lender, but due to our funding being 100% private monies, we have complete authority on lending, unlike many of our competitors who require ultimate agreement from the hedge fund/bank providing funds.

Are there Any Up-front Fees to a Client?

Generally, no. However, in some cases, we will require a valuation. If this is the case, we will advise you on day 1 and require payment once the client has received our agreement and decided to proceed. Our valuation fee scale is one of the most competitive in the market and is available to view elsewhere on the site.

What if I Get Enquiries Out of Hours and Need an Immediate Decision?

We recognise our introducers often see clients at unsociable hours and need immediate decisions. That’s why we offer every introducer our directors’ mobile numbers and welcome enquiries at any reasonable hour.

When do you lend without valuation?

There are a number of factors in deciding this, including how the property was purchased/is being purchased ( i.e. at auction), the presumed condition of the property, the loan size, LTV required and basis of our charge, e.g. 1st, 2nd or 3rd. In many cases we may agree no evidence of valuation is required, in others a drive by or possibly a full valuation. We will advise you of this at initial quotation stage.

Why do You Speak to the Client Day One, then Visit Them?

We appreciate not every lender does this, however it is important, as lenders who do not insist on solicitors, that we have the opportunity to ensure the client fully understands their obligations at an early stage. We visit the client to satisfy ourselves as to their identity and to ensure the documents are correctly completed.

How is Interest Calculated/Paid?

The client can choose to pay the interest on a monthly basis OR have the interest ‘Rolled Up’. If the client chooses to ‘Roll Up’ the interest it will be calculated monthly and increase on a compounding basis to be repaid on final redemption. Partial payments can be made during the term and this element of the debt will cease to incur interest once cleared to the account.

Are there any Occasions You do Not Speak to/Visit the Client?

No. This is something we insist on in all cases.

Will You Lend to Purchase Under Value?

Generally we will work on the lower of purchase price or valuation, however, we will consider working on the higher figure where a genuine reason for the below market value purchase exists (i.e. related vendor). We have no minimum period of ownership before we will consider an increase in value, therefore, if a client genuinely improves a security following purchase, we can consider lending on valuation.

Do You Consider Development?

No. Development is invariably more complex, involving rights of access, numerous planning conditions and third party involvement. This would require the involvement of solicitors and is best left those with experience in that sector. However, we are happy to consider ‘top up’ funds where a development is already well-progressed, as well as for heavy refurbishment.

I Am an Introducer; What Fee Can I Charge?

We do not dictate what an introducer can charge, after all, it is your client. All we ask is that you reach agreement with your client and the fee is not disproportionate. Typically we would expect a fee of no more than 15% on advances under £25,000, 10% on advances under £50,000 and 5% above this (subject to a maximum of £7,500), however we are happy to discuss this on an individual basis.

Do I Need to Register With You?

If you wish to submit an application on a client’s behalf, we will require our introducer agreement to be completed and we will carry out checks to confirm any relevant permissions, as applicable at that time, are held.

Are You Denying the Client Legal Representation?

No. We are careful to explain all the benefits and disadvantages of our advance to a client day one and to provide them with the clearest, simplest agreement via post so they have the opportunity to read it at their leisure and consider carefully. We encourage a client, if in any doubt whatsoever, to consult independent legal or financial advice before proceeding.

Your Biggest Plus Is No Solicitors. Is that Always the Case?

No. There are occasions when even we cannot avoid their involvement. However, in most cases, this is simply to act as a witness to our clients’ signature(s) and to provide independent advice. This is required where a client is over seventy years of age, does not have a good understanding of English, or is a party to the borrowing but not directly benefiting from it. In addition, there are occasions when we are lending for purchase, or a transfer is taking place. In these circumstances, we will require the clients’ solicitor to provide us with an undertaking to register our charge.

Where do You Lend?

Unlike many lenders, we do not have a southern bias. We will lend anywhere in England and Wales. Unfortunately, we are unable to consider security in Scotland and Northern Ireland.

What Makes You Different From All the Other Lenders?

Simplicity. We actively look for ways of making things simpler, such as our ability to complete without solicitors, our three page application form and our one page product guide. Bridging really does not have to be complicated.

Will You Take Out Another Bridging Loan?

We are happy to consider repaying another bridging loan, however this must be in the client’s best interest and a plausible explanation must be provided for the failure of the original exit. We will need to be confident the client’s new exit strategy is sound.

Intermediaries – Frequently Asked Questions

Get in Touch

Navigation

Address

Company Info