sub prime bridging loans

Non status bridging loans

February 1st, 2011

Non status bridging loans not take the status of the borrower into account, so credit history or details of income are not as relevant. It is not the same as sub-prime or “self-cert” lending, where adverse credit is considered or the borrower is free to state their own income without proving its authenticity. A genuine non status lender will not require any confirmation on the borrower’s financial background because it doesn’t matter. The loan in non status cases is secured against the borrower’s property and therefore that security negates the need for financial assessment. In addition to this some funders are able to take an associated 2nd charge over an additional property if necessary. Many lenders in this sector are, like Masthaven, regulated by the Financial Services Authority.

Borrowers who require commercial finance but have a poor credit history, or are unwilling to provide proof of income or business accounts may find non status bridging loans a good solution.

What type of security is required?
Non status bridging loans are secured against the value of the property used as security. The value of the property will need to support the value of the loan.

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Troubled subprime lender £2.8bn in debt prepares restructuring deal

October 29th, 2010

In an Interim Management Statement released on Friday, the troubled subprime lender Cattles announced that it is getting ready to cut its losses in relation to its Welcome Financial Services division.

As part of a restructuring deal, Cattles has confirmed that it would compromise its subordinated inter company claims against Welcome Financial Services Limited, and other subsidiaries in the Group, for no less than £39 million in the event of a sale to a new company.

Cattles has said it would use the £39 million payment to meet its own costs and to compromise amounts it owes to its creditors – which is expected to be around £2.8 billion, according to the last audited balance sheet date of 31 December 2008.

However, the troubled lender admitted that a number of commercial, legal and regulatory issues still need to be resolved before any restructuring can be finalised.

The group warned shareholders that it would be reporting a ‘significant loss’ for the year ended 31 December 2009, and a negative value for shareholders’ funds.

The statement said: “Cattles continues to believe that its financial creditors are likely to suffer an aggregate loss of around £1 billion. Consequently, as previously stated on a number of occasions, Cattles continues to believe that the shares have little or no value.”

Last year, shares in the lender were suspended after an accounting error revealed an £850 million black hole in the company’s finances.

When the accounting error came to light, seven former executives were dismissed, whilst nearly 600 members of staff have been made redundant.

Cattles has stopped any further lending by Welcome Finance, and is using The Lewis Group to collect out the loan book, which is predicted to take at least two or three years. So far, in the first nine months of 2010, £396.6 million has been collected.

Mortgage bridging by Masthaven

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Provident Financial wary of UK economy

July 29th, 2010

Sub-Prime Lender Provident Financial has released an assessment of the UK Economy, which reports a profit of £54 million instead of £57 million as projected by analysts. Normally one would assume that companies such as Provident Financial would profit during an economic crisis such as the one faced by UK. But these companies are taking a more conservative view of the situation and very few companies are stepping forward to take debt at this stage.

The present economic crisis and its impact on the job market has worried the UK population and companies such as Provident Financial. People of the low income group are also worried about how to make both ends meet in such a situation, where jobs are less and the pay is going through budget cuts.

At the moment, many mainstream banks and large financial companies are profiting from the lows hits during the recession. But they are equally concerned about the potential of the UK economy in the short and medium terms.

Masthaven is a competitive and quick way to meet your short term loan needs.

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