There are many bridging lenders who you can approach directly to arrange bridging finance, but there are significant advantages to using a bridging finance broker.
The best bridging finance brokers are regulated by the Financial Conduct Authority (FCA) who have rules and regulations that brokers must abide by. The FCA makes sure that brokers and lenders act ethically and provide impartial advice.
Many lenders are also members of the Association of Short Term Lenders (ASTL), which has a code of conduct that its members have agreed to follow.
Regulation means that borrowers are protected should a lender or broker act inappropriately.
Finding the right lender and presenting your initial application
A bridging finance broker will initially discuss your application with you. They can then present your application clearly to the best lender that will match your requirements. They can then urge the lender to make an initial loan decision as quickly as possible.
A broker will have a relationship with a number of lenders and is in a position to find the best lender for your situation. Some lenders specialise in particular areas of the bridging market, such as loans for properties purchased at auctions.
The application process
Once an initial loan offer has been agreed, the lender will require documentation, a valuer’s report and legal work. The broker can help borrowers prepare the correct documents and keep the application smooth.
Speeding up the process
If speed is important, the broker can arrange a valuation of property and create a report on the borrower’s financial situation. The broker can also liaise with the lender’s legal team, thus considerably decreasing the time taken from initial application to the loan funds being available.
A broker acts as the intermediary between the lender and the borrower. A bridging finance broker is an expert in bridging finance, which is an advantage when negotiating with lenders. Dealing directly with lenders without expert knowledge can be difficult.
Sometimes, lenders may exaggerate what they can offer when talking to clients directly. A broker knows the reality of the bridging finance market and will make sure that all loan deals are realistic.
The best price
Before a borrower makes a loan application, it is difficult to compare the interest rates from different lenders. Unlike standard mortgages, there is no fixed interest rate offered to everyone. Bridging loans are risk assessed and the higher the risk, the more interest is charged. Thanks to the enhanced knowledge they possess, the broker is in the position to source the best deal at a competitive cost.
The long term
A bridging loan is a short-term loan that is often used to raise finance while waiting for a longer-term financial solution to be arranged, such as a mortgage. It helps to have a broker who can arrange loans for both your short-term and long-term needs.
Why not talk to Ascot Bridging Finance to arrange both bridging finance and longer-term loans for individuals, partnerships and companies?