The value of a bridging loan broker

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Bridging loans are short-term loans that are useful for a variety of reasons. There are many lenders, and their costs and interest rates vary, making finding the best one something of a challenge. A bridging loan broker can help you find the best bridging loan deal.

Why is it difficult to compare bridging loan deals?

If you want to compare credit card deals or high street bank loans, it’s easy to carry out online research to compare interest rates and conditions. You can either visit the various financial provider sites or use a price comparison site. There is no accurate comparison information available for bridging loans. The reason for this is that bridging lenders assess each loan application on an individual basis. They will set interest rates according to their perceived level of risk.

There are websites where you can access some information about bridging lending rates from the various providers. These sites quote from and to interest rates and the minimum and maximum amount that a lender can borrow. The actual rate will vary depending on the individual application. How much you can borrow can also vary. If the bridging loan is for a property purchase, there is no guarantee that you can get a bridging loan for the full value of the property.

A bridging loan broker will be able to provide an initial assessment of the bridging loan application and then recommend the best lender to provide the loan. Some lenders specialise in a particular area. For example, some focus on providing finance for properties bought at auctions. A broker will know the best lender to provide a loan for a particular purpose.

No standard application

The information that a lender needs to see before processing the application varies depending on the lender and the type of loan. A bridging loan broker will be able to tell the applicant the information that they will need to provide to support the loan application.

The exit strategy

A bridging loan requires an exit strategy, which is the information on when and how the loan will be repaid. Many exit strategies are reliant on long term finance to pay off the bridging loan. A typical example is using a bridging loan to complete a house sale. The loan is repaid once a long-term mortgage has been completed. Many bridging loan brokers will also be able to arrange the long-term finance that will enable the bridging loan to be repaid.

Find the best bridging loan deal

Not all bridging loan deals are available direct from the bridging lender, with a broker sometimes find a deal that is not available by going direct.

A bridging broker will have expert financial knowledge. As well as arranging the loan, they can advise on all aspects of the bridging finance process.

If you feel that a bridging loan is suitable for your financial needs, talk to Ascot Mortgages, who will be able to find the best bridging loan for you.

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*Privacy Notice - Any information provided will be treated with confidentiality and will only be accessible within Ascot Mortgages