Specialist cases require specialist conveyancing expertise
By Karen Rodrigues, Director of Sales, eConveyancer
The specialist mortgage market has become a more significant consideration for brokers of late, with increased interest in products like second charge mortgages and bridging loans from borrowers.
One of the primary drivers for second charge business is debt consolidation, since this form of mortgage allows borrowers to tap into the equity they have built up in their property, without having to touch the original mortgage. Given the economic challenges many people already face after the turmoil of the pandemic, the option to reorganise their debts and give their finances a boost is a compelling one. What’s more, should things become more difficult in the months ahead, second charge is only likely to become more appealing.
It’s a slightly different story with bridging loans. These short-term property loans are particularly useful for property investors who need to move quickly. They may have spotted a property in need of some TLC, which perhaps regular mortgage lenders would be uncomfortable lending against. Yet with a little refurbishment work, it could be transformed and sold on for a profit, or even retained as an ongoing buy-to-let. A bridging loan can deliver the funding needed to complete that purchase and the required work, before the property is sold on or refinanced.
With many professional landlords looking to expand their portfolios at the moment - as many as half of landlords with at least four properties intend to buy over the next 12 months according to Handelsbanken - then bridging loans are likely to be utilised.
Understanding the market
These are specialist areas of the market, and so require a specialist level of advice from the brokers arranging the financing.
It’s not just on the product choice where a detailed level of expertise is required, however. The legal side of second charge and bridging deals is different from that which might take place during a traditional purchase by an owner occupier, and requires a particular level of expertise.
While a ‘jack of all trades’ conveyancer may be able to assist, the reality is that turning to a conveyancer with experience handling these sorts of transactions will mean a smoother and more satisfying experience for the client. These specialists handle second charge and bridging cases on a daily basis and so are intimately familiar with exactly what is required, something that you simply cannot get from solicitors who only handle such loans once in a blue moon.
At eConveyancer, we have built a formidable panel of conveyancers who have that requisite experience and understanding; picking up the phone and having a chat with our team will see you pointed in the direction of the specialists who can help the case complete swiftly and stress free.
Working with the right partners
Second charge and bridging loans are two particularly specialist areas of the mortgage market, but they are by no means unique. The truth is that there can be substantial differences in the conveyancing involved with all sorts of types of transaction, from a Help to Buy purchase to an investor buying a property through a limited company.
That’s why it makes so much sense to work with legal partners who have experience in that particular area, who not only understand precisely what to look for but can also avoid the delays and mistakes that are inevitable from a legal partner little acquainted with that type of case.
Our industry prides itself on partnerships, on the way that the various stakeholders involved in a transaction are able to work together in order to deliver the best possible experience to clients. Panel managers have a crucial role to play - brokers can reduce their own workload and stress levels, as well as provide clients with a higher level of service, if they work with panel managers who can connect them with experts in the field, no matter how niche the request may be.
For adviser use only. Please note this content has been supplied by our lender partner and as such, is their responsibility. No party shall have any right of action against Legal & General in relation to the accuracy or completeness of the information in this article.