OFFA joins The Association of Short Term Lenders

OFFA joins The Association of Short Term Lenders

OFFA has become the latest lender to join the Association of Short Term Lenders (ASTL).

OFFA is the first bridging finance provider in the UK to offer products that are designed in accordance with Islamic and ethical financing principles. It provides residential, commercial, refurbishment and planning bridging loans as well as development finance, and its management team has combined experience of more than 50 years of property finance experience.

Bilal Ahmed from OFFA, says: “Shariah-compliant finance is now an established part of the mainstream UK financial services landscape, used by Muslims and non-Muslims alike. With OFFA, we’ve extended its reach into short-term lending, and are already seeing significant demand as property investors seek alternatives to the high street. As a company that acts in accordance with ethical financing principles, we pride ourselves on being open and transparent in all our dealings and prioritise high quality customer service. So it was a natural fit with us to become members of the ASTL, which promotes these values throughout the industry.”

Vic Jannels, CEO of the ASTL, says: “I’d like to welcome OFFA to the ASTL. As with all of our members, the team at OFFA has demonstrated a customer focus and commitment to upholding and promoting our Code of Conduct, which is a kitemark of quality throughout the industry. I would encourage all brokers seeking a short term lending solution for their clients, to look for ASTL membership as a badge of quality.”

Press Release: Thursday, 30^th July 2020

Bridging lenders upbeat on long-term prospects

The latest sentiment survey from the Association of Short Term Lenders (ASTL) shows that bridging lenders are upbeat about the long term prospects for the UK economy despite the uncertain outlook and immediate challenges faced by the sector.

The research, which was conducted amongst members of the ASTL in the first half of July, found that more than 64% of bridging lenders are confident about the long-term prospects for the UK economy, compared to just 50% when the survey was run in June last year.

Lenders are split on the immediate prospects for their own businesses, with 41% saying they expect the turnover of their business to grow in the next six months, matching the 41% who think their turnover will shrink.

Overall, 41% of lenders expect the turnover of the bridging finance sector to grow in the next six months, with 36% saying they think it will shrink. However, 43% of lenders say they think that house prices will fall in the next six months, with just 24% expecting there to be slight growth.

Competition in the sector is unlikely to increase in the second half of 2020, with just 5% of lenders saying they think competition will increase, while 57% say that competition is likely to decrease.

The ASTL Positivity Index

Vic Jannels, CEO at the ASTL, says: "2020 has been a year like no other, but short-term mortgage lenders have demonstrated their resilience and ability to adapt in challenging circumstances. It is particularly encouraging that so many of our members are confident about the long-term prospects for the UK economy. And while we face much uncertainty and many challenges in the immediate future, those businesses that continue to maintain high standards of underwriting and customer focus will be well-positioned to benefit from economic recovery in the future.” 

Press Release, Monday 20th July, 2020

Mint Bridging joins The Association of Short Term Lenders

Mint Bridging has become the latest lender to join the Association of Short Term Lenders (ASTL).

Mint Bridging offers bridging finance for borrowers, developers and investors, with loans available up to £5m for property purchases, developments, auction purchase, business cash flow, investments and more.

Paul Wertheim, Operations Director at Mint Bridging, says: “We join the ASTL at an exciting time in Mint’s journey, as we look to further improve the way we do business in the forthcoming months. Our team at Mint Bridging has more than 100 years of collective lending experience and we have lent on a short-term basis in virtually every scenario which can exist. Success is more than just being experienced though. Success, for us, is as much about building, nurturing and growing relationships with brokers and borrowers, as well as building a sustainable business. These are values that we share with the ASTL and we are very much looking forward to working with Vic and the team to help drive the market in the right direction.”

Vic Jannels, CEO of the ASTL, says: “I’d like to welcome Mint Bridging to the ASTL. Like all of our members, Mint Bridging has demonstrated a customer focus and commitment to high standards that are so important in the development of any healthy market. We are gaining a lot of traction at the ASTL in our conversations with HM Treasury and thought leadership in the industry, and every new member we welcome strengthens our ability to uphold standards and promote the interests of the short term lending sector.”

Press Release: Wednesday, 22^nd July 2020

Working at speed to deliver a healthy market

The rate of change in the short-term lending market since March has been immense, but one of the great things about our sector is that it is possibly the most resilient and adaptable area secured lending.

Lenders have been incredibly quick to respond to the changing environment and evolve their processes accordingly and while some lenders have pulled back from the market, many have continued to lend throughout lockdown, using technology and remote valuations to continue to operate effectively. They are, rightly, taking appropriate precautions to mitigate risk, and we have seen a tightening of some criteria, such as limiting LTVs, reduced appetite for larger loan sizes and taking a more cautious approach to ground-up developments.

We currently find ourselves in a situation where levels of activity are extremely high but caution ultimately still reigns, which is the correct approach for a number of reasons.

The removal of the furlough scheme in the coming months is expected to lead to a spike in unemployment that will put further downward pressure on the economy and questions remain as to the potential shape of any recovery.

While the furlough scheme has been welcomed by lenders, another piece of government intervention has provided them with significant logistical considerations and placed a disproportionate financial strain on short-term lenders. The current enforcement moratorium, which suspends recovery activity for lenders was introduced with the best intentions of keeping people in their homes during the pandemic. But it has been applied with a broad approach and it has been clear to us at the ASTL that there is a need for far more detailed provision in the mortgage market. We are already seeing consumer detriment and there have been examples of peer-to-peer lenders calling in their loans at short notice as they are unable to address the mismatch between funding and lending requirements during this period when their powers of recovery have been stifled.

We have sought to encourage HM Treasury to recognise that the market is made up of many products, not just traditional long-term owner-occupier residential mortgages and we have offered our help as part of a balanced response that best supports the UK’s economic recovery. And I am happy to say that we have made some progress in speaking to the right people and we will continue to push for greater engagement, both on this issue but also any future issues where it would be beneficial to include the insights and ideas of the short-term lending market.

The market is performing well and while there may be some challenges on the horizon, where there is demand from customers and an appetite to meet that demand, there will always be the ingredients for a healthy market. At the ASTL, we are receiving substantial levels of interest from potential new members and associate members as we continue the process to grow our membership and influence, and we will do all we can to help deliver that healthy market.

Vic Jannels, CEO of the ASTL

A version of this article appeared in the July digital edition of Business Moneyfacts