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Paul Woodland

Area Manager

RBS Private Bank

Unlocking a New Income Stream

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Unlocking a New Income Stream

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Agenda

• How Bridging works

• Opportunities

• Marketing

• Our proposition

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How Bridging works

• Short term finance

• Fast access to funding

• Secured against property or land

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How Bridging works

• Arrangement fee

• Monthly interest

• 1 Month minimum term

• Sometimes ERC’s

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How Bridging works

• Daylight

• Closed

• Open

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Opportunities

• Auction purchase

• Buy to let - discount for quick purchase

• Fund a new business venture

• Property development - Unmortgagable

• Capital raising/debt management

• Purchase at a discount

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Opportunities

• Revive ‘chain break’

• Negotiate purchase price

• Downsizing

• Purchase abroad

• Develop new home

• Move in at leisure

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Marketing

• Understand how it works!

• Website - Optimisation

• Literature

• Introducers (Estate Agents)

• Moving in package

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Our Proposition

• RBS Brand

• RBS Private Bank

• Relationship Development Managers

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Our Proposition

• Single point of contact

• No call centres

• Decision in principle within 48 hrs

• Indication within 2 hours

• Direct access to underwriter

• RDM is MCOB regulated

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Our Proposition

• Daily interest linked to bank base rate

• No ERC’s

• No minimum term

• Normally no valuation

• Upto 100% LTV for closed & 75% for open

• Fees and rates negotiable within guidelines

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Our Proposition

• Complex/non standard lending

• Secured & non secured

• Self Build Loans

• Tax motivated lending

• Litigation

• IHT funding

• Private Banking

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Our Proposition

• First class service

• Attract & retain customers

• Extra fee income

• Ability to earn 2 proc fees

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Unlocking a New Income Stream

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There are also huge differences in the way the two types of borrowing are perceived. Reputable providers of bridging finance acknowledge that the way in which some other firms have operated has created a poor image for the sector. They have made real efforts to raise standards.

CML Newsletter - April 2006

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Mortgage brokers turn to bridging

Mortgage brokers have had it good for the past few years with a good buoyant market. It has however with recent economic

conditions become imperative for mortgage brokers to turn to other sources of revenue in an effort to continue supporting

their clients in a professional and courteous manner. Bridging loans are a clear alternative to traditional mortgage products not least because of their relative speed of acquisition.

Bridging loans news - Dec 07

www.bridgingloans.co.uk

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Bridging finance remains a niche lending sector but is growing rapidly and could be worth £5.6 billion by 2010, it has been predicted.A report by Datamonitor says that the market for bridging finance is currently worth around £1.2 billion in balances outstanding and £2.5 billion in gross advances, and is growing by 16% a year. Gross advances inthe sector are large relative to balances outstanding because borrowers take out bridging loans for much shorter periods than mortgages.Bridging finance is becoming more widely accepted by brokers as a tool for solving the short-term funding requirements of their clients.Bridging lender Cheval Private Finance says that brokers’ knowledge has improved since it undertook a survey in which 28% regarded themselves as “unfamiliar” with the sector. The survey found that a further 25% considered themselves to be only “quite familiar” with it.

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The CML spokesman said that as long as there is a clear exit path that consumer have in mind to ensure that the interest payments they make are not excessive then bridging can be extremely useful. There are many occasions where to secure the property needed and when speed is of the essence bridging is the only realistic option available. The volume of bridging loans is set to grow through 2008 as more land becomes available for development and as more and more properties become available via the auction route.