Quantum Mortgages is poised to release its bridging proposition to the wider market following a two-month pilot with key broker partners to test its systems and processes.
As the lender gears up for its second buy-to-let (BTL) securitisation in three years, Wes Friedel, head of bridging, lays out the lender’s proposition and the short-term lending opportunities in 2025.
Friedel (pictured) says: “We’re approaching this differently from a lot of other lenders.
“The normal way of evolving is a bridging lender that turns into a longer-term lender. We’re coming at it from the opposite way. We’ve been a buy-to-let lender for three years and now we’re veering into the bridging space.
“That’s part of the reason we have aligned the bridging side with our buy-to-let [criteria]. We’ve got the track record there and we know what business works for us. We’ve got some slightly more unique buy-to-let criteria, we know we’re very good at what we do and the results are paying dividends for us. By bringing in bridging, we can benefit from that success and continue to grow the brand.”
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Soft launch of bridging deals
Friedel joined Quantum Mortgages in February 2024 with plans to launch the bridging arm of the business two months later. But with its first BTL securitisation drawing the firm’s focus, Quantum Mortgages decided to put its bridging plans on hold and watch the market.
Friedel says: “We thought it was a better position for us to wait a little bit longer.”
As the first securitisation progressed, Quantum Mortgages reviewed its bridging proposition and continued to test its systems internally.
At the start of this year, Quantum Mortgages was ready to launch its standard bridging product. The deal was released to a small group of broker partners for continued testing of its systems and processes ahead of its wider launch, which will include light and heavy refurbishment deals.
“The wider launch is imminent. Brokers should start to see bridging options on the portal very soon,” Friedel adds.
What brokers can expect from Quantum Mortgages’ bridging proposition
Quantum Mortgages has decided to align its bridging criteria with its BTL lending policy so investors will always have an exit route out of short-term lending.
Self-serve decisions in principle (DIPs) are one part of Quantum Mortgages’ service that differs from most other bridging lenders. But Friedel is keen to spell out that the system “is not a brick wall; we are always here to talk.”
Automated valuations and dual representation on legals are also part of its bridging process.
Friedel explains that Quantum Mortgages’ approach is to stand by the published terms of its products with no surprises or last-minute changes. Unless something material changes during the application process, such as a drop in the valuation or a previously unknown risk is unearthed during the latter stages, Friedel says there won’t be any last-minute changes to the deal that’s been agreed.
“We want to do things properly and we want to do the right thing for the borrower, the broker and anybody else in the chain. The easiest way to do that is to be as transparent as possible,” he adds.
Bridging market in 2025
Facing the 2025 bridging market, Friedel is optimistic about the opportunities in short-term lending.
“It’s exciting, bridging never seems to stop,” he says.
He acknowledges that, like the BTL market, the development finance market has had its own set of challenges with rising material prices and labour shortages. But this, explains Friedel, has benefitted the refurbishment market.
“A lot of small and mid-sized developers have moved into refurbs because they have to keep trading. It’s quicker, easier and there’s a bit less risk involved. And that’s fed bridging, it’s kept it buoyant,” he says.
Figures from the Bridging & Development Lenders Association (BDLA) showed that bridging completions grew to a new record of £2.30bn in Q4 2024, representing a 28.6% increase on the previous quarter.
And while external geopolitical events are beyond the market’s control, he expects the current momentum we see in the bridging market to keep going, underpinned by a shortage of housing to buy and high demand for rental properties.
