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A “flood” of private mortgage lenders is now returning the market, according to a firm that helps brokers source private funding.
Bransgroves Lawyers, which acts for private mortgage lenders and smaller mortgage funds, has noticed that the market is returning to pre-GFC levels, partner Matthew Bransgrove said.
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“Since 2013, it has become apparent that banks and other institutional lenders are now refinancing private mortgages,” he told The Adviser.
“This realisation permeated through the private lending community over the course of 2013 and what began as a trickle has now become a flood.
“Private lenders who had their money in equities and term deposits are now once more lending on mortgages.”
Mr Bransgrove said the firm acted on 52 mortgage advances in 2012 and 126 advances in 2013 – and had already acted on 157 advances in the first five months of 2014.
He also pointed to a large increase in the number of parcels being advertised on the Bransgroves Mortgage Market: 23 in December compared to 71 today.
Mr Bransgrove told The Adviser that the firm’s mortgage market is an efficient way for brokers to source funding.
“A broker who contacts a private lender has a 95 per cent chance of being told the lender has no money at the moment but to call back in two months when such and such a loan is due to discharge,” he said.
“The advantage of the Bransgroves Mortgage Market is that only those lenders who have money available immediately or in the next few weeks advertise parcels.”
