A Mortgage Syndicate has multiple benefits to lenders:
- The investors are diversifying their risk. If their capital is fractionalised across multiple loans and interest on a particular loan goes unpaid, or capital return is delayed, the financial stress on the investor is thereby minimised.
- Having multiple lenders involved in the same loan enhances lender due diligence as each lender has a slightly different approach.
- Allowing access to a higher standard of loans to smaller investors.
A Mortgage Syndicate can be written with a bare trustee (which Bransgroves can provide) or as contributory mortgage where each lender’s name appears on the Torrens title.
Bransgroves has developed a range of mortgage syndicate structures which make it almost as efficient for a broker to write a loan with twenty investors, as with one investor. Contact us today to discuss how we can help you put together your syndicate.