Link Lending In Administration
It would appear that one of the UK's largest bridging lenders has failed to renegotiate a funding line it had with Barclays Bank.
Barclays Pulls The Plug On Link Lending
Earlier this year things looked rosy for the bridging finance lender Link Lending when it secured £75m of funding for new business. However, it has failed to renegotiate funds with Barclays and PricewaterhouseCoopers were appointed administrators, taking over on October 8th 2009.
It is unclear at this moment in time as to why a deal could not be reached e.g. trading problems, agreement on the cost of funds or simply Barclays has had a change of heart on the level of risk. This will be really bad news if the latter as other commercial lenders using Barclays could find themselves in trouble! Hopefully more details will emerge over the next few days.
It also looks like brokers will not be paid commissions and the staff will not get their contracted redundancy packages.
On a brighter note Cheval believe that higher value residential properties are becoming easier to refinance and have therefore increased their maximum loan in cash terms to £1.5m, up from £500k.
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