Bridging Lender Enters Administration

The End of Mathon Finance

Mathon was one of the few bridging lenders that offered loans as high as £25m, others typically fall into £1m - £3m range, so this is a big loss in an area where few options are available. It has been reported that declining property values are responsible.

All creditors appear to have been repaid, but with property prices appearing to a have stabilised and rising in some areas, it would be a surprise if this was the sole reason... Maybe we'll hear more on the grapevine.

What Next?

As the slow recovery continues we expect news in the bridging loan market to remain a mixture good and bad.

So here's some good bridging news - another lender this week announced the launch of a bridging property refurbishment product for buy to let properties subject to 100% mortgage retention i.e. in need of "full refurbishment".

This seems to be an indicator of increasing confidence in the property market, making Mathon's closure all the more surprising.

Submitted by Bridging Loan Broker on Fri, 26/03/2010 - 11:04

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