1. 1 Paul Woodland Area Manager RBS Private Bank Unlocking a New Income Stream

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3. 3 Agenda How Bridging works Opportunities Marketing Our proposition

4. 4 How Bridging works Short term finance Fast access to funding Secured against property or land

5. 5 How Bridging works Arrangement fee Monthly interest 1 Month minimum term Sometimes ERC’s

6. 6 How Bridging works Daylight Closed Open

7. 7 Opportunities Auction purchase Buy to let - discount for quick purchase Fund a new business venture Property development - Unmortgagable Capital raising/debt management Purchase at a discount

8. 8 Opportunities Revive ‘chain break’ Negotiate purchase price Downsizing Purchase abroad Develop new home Move in at leisure

9. 9 Marketing Understand how it works! Website - Optimisation Literature Introducers (Estate Agents) Moving in package

10. 10 Our Proposition RBS Brand RBS Private Bank Relationship Development Managers

11. 11 Our Proposition Single point of contact No call centres Decision in principle within 48 hrs Indication within 2 hours Direct access to underwriter RDM is MCOB regulated

12. 12 Our Proposition Daily interest linked to bank base rate No ERC’s No minimum term Normally no valuation Upto 100% LTV for closed & 75% for open Fees and rates negotiable within guidelines

13. 13 Our Proposition Complex/non standard lending Secured & non secured Self Build Loans Tax motivated lending Litigation IHT funding Private Banking

14. 14 Our Proposition First class service Attract & retain customers Extra fee income Ability to earn 2 proc fees

15. 15 Unlocking a New Income Stream

16. 16 There are also huge differences in the way the two types of borrowing are perceived. Reputable providers of bridging finance acknowledge that the way in which some other firms have operated has created a poor image for the sector. They have made real efforts to raise standards. CML Newsletter - April 2006

17. 17 Mortgage brokers turn to bridging Mortgage brokers have had it good for the past few years with a good buoyant market. It has however with recent economic conditions become imperative for mortgage brokers to turn to other sources of revenue in an effort to continue supporting their clients in a professional and courteous manner. Bridging loans are a clear alternative to traditional mortgage products not least because of their relative speed of acquisition. Bridging loans news - Dec 07 www.bridgingloans.co.uk

18. 18 Bridging finance remains a niche lending sector but is growing rapidly and could be worth £5.6 billion by 2010, it has been predicted. A report by Datamonitor says that the market for bridging finance is currently worth around £1.2 billion in balances outstanding and £2.5 billion in gross advances, and is growing by 16% a year. Gross advances in the sector are large relative to balances outstanding because borrowers take out bridging loans for much shorter periods than mortgages. Bridging finance is becoming more widely accepted by brokers as a tool for solving the short-term funding requirements of their clients. Bridging lender Cheval Private Finance says that brokers’ knowledge has improved since it undertook a survey in which 28% regarded themselves as “unfamiliar” with the sector. The survey found that a further 25% considered themselves to be only “quite familiar” with it.

19. 19 The CML spokesman said that as long as there is a clear exit path that consumer have in mind to ensure that the interest payments they make are not excessive then bridging can be extremely useful. There are many occasions where to secure the property needed and when speed is of the essence bridging is the only realistic option available. The volume of bridging loans is set to grow through 2008 as more land becomes available for development and as more and more properties become available via the auction route.