Laurence Goodman, Bridgebank’s managing director, said there is a demand in the 2-year to 5-year product sector that is not being met and that a niche exists for lenders to get into.
Goodman said: “In terms of 2-year to 5-year products I think there is a niche for it. I think it’s a specialist sector and for those lenders with access to the funds I think there’s an opportunity there.
“The 2-year to 5-year product provides a greater element of flexibility in the market place over the bridge and it works as an adjunct to bridging. You’ve got bridging from one day to 12 months and then you’ve got the short to medium-term products for two years to five years and then you’ve got your long-term products which is five years and upwards. So we’re looking into filling that demand.
“There are a number of players already trying to get into that space. There’s a number of high-end property finance products we’re looking at adding to that space at the moment. We’re working quite hard at expanding our product range.
“We’re going through due diligence and getting ourselves prepared for a nice and clean professional start when we’re ready. We don’t rush into things.”
Dragonfly Property Finance currently offers medium-term bridging loans, while Omni Capital has also indicated it is considering entering the medium-term market in the future.
