A bridging loan is a very different product from a standard bank loan. Consequently, anyone considering bridging finance needs to ensure they work with a suitably qualified and experienced specialist.
Over recent years, the United Kingdom’s bridging finance sector has grown and evolved practically beyond recognition. Once comprising just a few niche lenders with a comparatively compact target audience there are now dozens of established and reputable specialist lenders to choose from, each with its own pros and cons which should be carefully considered before applying.
Narrowing down the available options manually can be a daunting and time-consuming prospect. Given the time-critical nature of most bridging finance applications, wasting time comparing and contrasting deals from dozens of specialist lenders is not the preferred approach for most.
From interest rates to overall borrowing costs to the specialism of the lender and more, many factors need to be considered to find a good lender for a bridging loan. Precisely why it pays to team up with a specialist broker, who can do all the hard work on your behalf…and for free.
Why Apply Via a Broker?
Working with a broker, an individual (or group thereof) with extensive knowledge and experience of bridging finance handles the complexities on your behalf. During your initial consultation, your preferences and requirements will be discussed and your suitability for bridging finance ascertained.
Your broker will then pair your case with the best-suited lender for your requirements, from a panel of qualified and vetted providers. They will ensure that the terms and conditions of the facility are fair, the borrowing costs are affordable, and that no better deal is available from any other lender.
Importantly, your broker will negotiate on your behalf to ensure you get an unbeatable deal. Bridging loan Brokers routinely gain access to the kinds of low-cost bridging loans that are not offered directly to customers (only via broker introductions). In fact, many specialist bridging products in general are offered exclusively by way of broker introductions.
Given that all of this is offered to the client 100% free of charge, it simply makes sense to apply through a broker.
What to Look for in a Good Bridging Specialist?
In terms of the main qualities and characteristics that indicate a good bridging specialist, the following should be considered mandatory:
- Fast turnaround times – the primary point of appeal with bridging finance is the speed with which the facility can be accessed. The very best lenders can authorise and issue loans within a few working days.
- Affordable fees and interest – interest rates and borrowing costs vary from one lender to the next, but should always be in line with market averages at the time.
- Flexible terms and conditions – ideally, the terms and conditions attached to a bridging loan should be flexible and negotiable, to ensure they suit the requirements of the applicant.
- Early repayment option – should it be possible, borrowers should have the opportunity to repay their loans early, without facing extortionate fees and penalty payments.
- Flexible criteria – a good bridging loan provider will consider all applications received by way of their overall merit, and be willing to offer support to applicants with imperfect credit (where viable to do so).
- Knowledge and experience – importantly, it is essential to do business exclusively with lenders who have extensive knowledge and experience in bridging. As opposed to those who simply offer short-term loans as something of a side-line.
For more information on any of the above or to discuss the potential benefits of bridging loans in more detail, call anytime for an obligation-free consultation.
