Underwriting your bridging deals: Q&A with our senior underwriter Warren Perks
See all of our bridging rates and offers here.
Warren Perks, a Senior Underwriter for our bridging team, talks about his role and how underwriting helps deliver faster, simpler finance.
Having recently celebrated his 5-year anniversary at the business, Warren looks back on how the role has changed and where it is going to keep improving property lending.
How has your role changed since you joined (if at all)?
When I joined I think I was employee number 70 and there are now nearly 200 employees so the growth has been vast. At that point in time we were only a Bridge and Development lender with 3 underwriters.
The Bridge underwriting team has now doubled, we are now an Industry leader in the BTL sector and also looking to launch new products this year.
Throughout all of this though my role has remained consistent, which is to be a ‘guardian of the business’ in terms of risk for LendInvest.
Read more: Why landlords should turn to bridge-to-let finance ahead of the Stamp Duty Deadline
How have the processes at LendInvest evolved over your time here?
The processes have improved with the growth of the business. There is a clear and structured framework of what needs to be adhered to from origination, to the completion of a deal. A clear standard operating procedure is there for all to follow.
What technology is being used to make bridging underwriting simpler?
The advent of Genesys, the new originations platform, is evolving on a weekly basis and this is making the underwriting process more efficient.
Every case is different and the human touch will never go away but a more user friendly system enables the Underwriter to concentrate on the more important part of the job.
Case studies: The 17 small bridging deals we completed in 1 week
For a standard bridging deal, what does your role involve?
A new deal can either come through after initial discussions with the BDM and/or broker to see if it is one for us or the application may be approved in principle and therefore then land on my desk.
I will assess the purpose and intentions for the loan, focusing on the main aspects of the case. Firstly, the borrower/s, to check both their credit record and their experience. Secondly, the loan terms requested, which include the loan amount, interest rate and LTV etc.
Thirdly, the asset itself and its location. Finally, the designated exit to clear the facility.
During the course of the underwriting process I will be in contact with various parties including the borrower/broker to keep them updated but also our solicitors and the valuer.
Learn more about our bridging operations team: Q&A with Bridging Operations manager Artesa Ormeni
What do you think good underwriting for bridging finance looks like?
Bridging is all about speed and efficiency by definition as it is there to allow an asset to be acquired in a timely manner.
To this end an Underwriter’s role is to navigate the deal through to completion albeit with a degree of calculated risk. This process will involve good communication along the journey with all stakeholders, asking the relevant questions and being open and honest along the way.
Sometimes I have to communicate a decision that is not going to be received well but I will always look to find an alternative way to move forward. If not I will look to deliver the message at the earliest opportunity to enable an alternative route for the client.
See all of our bridging, development and Buy-to-Let rates and offers here.