From tighter completion times to commercial diversification, StreamBank’s Roz Cawood reflects on how brokers can better support clients and overcome lending limitations in today’s market.
In a recent episode of IFA Talk, Roz Cawood, Managing Director of Property Finance at StreamBank, shared her expert views on the evolving specialist lending landscape and how financial advisers can step up in 2025. With nearly four decades in financial services, Cawood’s insights span regulation, commercial strategy, and the real-world pressures of getting deals done in a market that’s still far from settled.
Investors seeking yield beyond buy-to-let
Cawood began by outlining how investor sentiment is changing. “There’s been some challenges for quite a few years now in the buy-to-let market,” she said, pointing to tax and regulatory reforms including Section 24 and stricter EPC requirements.
As a result, landlords are looking further afield. “We saw them moving into HMOs a few years ago and now we’re seeing more and more looking at commercial properties to diversify their portfolio.” It’s not just about risk management either. “Commercial properties can present a higher rent or yield,provide longer tenancies, and there are opportunities for conversions with the relaxation of permitted development rights.”
Bridging’s 12-month limit: A pressing frustration
One of the key talking points was the 12-month maximum term for regulated bridging finance, a rule increasingly at odds with market conditions. “The sales market is quite stickyand if you need to go through planning, carry out works, and exit by refinance or sale, doing all of that within 12 months is really challenging,” said Cawood.
Delays in planning and construction often mean clients are pushed to the wire, or beyond it with limited options. “Sometimes there are no extensions available after the 12-month period,” she explained, making the rule a major barrier for brokers and borrowers alike.
She noted that industry bodies like the Bridging & Development Lenders Association (BDLA) are raising the issue with the FCA, and while high-net-worth exemptions do exist, “that is obviously not going to be available for everybody.”
From broker to project manager: Navigating exits
So.what can brokers do? According to Cawood, it’s about expanding the traditional role. “Brokers need to become more like project managers,” she said. “Not just getting the deal completed, but looking beyond completion,making sure they have an exit worked out at the beginning, a backup exit, and staying on top of the project.”
Timing is everything: “Don’t do that two months before the end of the term. Do it from day one post-completion,” she advised.
Can bridging be fast and flexible?
Despite the pressures, there are signs of progress. “Completion times have come down,” she noted, driven by better tech and slicker internal processes. “We’ve got automated valuations, digital signatures, tools for KYC and background checks which are speeding up important elements within a transaction.”
But Cawood is clear that speed still depends on people. “We completed one deal in nine days,” she recalled, “because we had a motivated broker, a motivated client, everything provided upfront, and great communication between us and the lawyers.”
That deal involved title insurance, automated valuation, and legal work completed in two days, “but so often one of those things falls out of bed and it doesn’t quite happen,” she added.
Building broker resilience in 2025
To wrap up, Cawood offered a blueprint for brokers looking to support clients more effectively this year. “Good relationships with lenders are vital. Know what each lender’s sweet spots are, it’s not one lender fits all.”
She also urged brokers to vet every stakeholder involved in a deal. “If the client is doing a refurbishment, make sure they’ve got the right people in place.
If it’s a lawyer who’s never done a bridging deal before, that’s not going to help.”
Ultimately, it comes down to broker knowledge and involvement. “Stay close to the deal, cradle to grave, and improve your knowledge of what’s out there. That way, you can effectively hold your client’s hand through the whole process.”
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