Alternative Bridging has enjoyed a busy year, with the lender completing £10m worth of loans between July and the beginning of August alone.
Rubins said: “For sure 2014 has been a ride on a magic carpet for short-term lenders, old and new, and 2015 can be rewarding but will prove to be more challenging.
“On the commercial side, loan sizes will grow and we will continue to fill the gap vacated by mainstream lenders – taking a view on exit, interest accrual, speed of service, repairing credit history and so on.
“Some more ‘exotic’ assets will cause problems to lenders and borrowers alike as they fail to sell or find refinance and prove that value and saleability are not the same.”
He added: “Development finance demand will increase as some of the newer lenders withdraw hurt with stock outside London not selling as forecast and with cost overruns and accrued interest consuming the anticipated Gross Development Value.
“Experienced development finance lenders will gain ground as they demonstrate that higher cost is more than offset by availability and good service.”
“As to regulated loans, six months is probably too short a period to find a buyer or refinance, and renewing expired loans will become a problem.
“Borrowers should take heed and be more purposeful as equity is quickly consumed if selling prices are pitched too high and sales do not materialise in what will be a selective housing market.”
