The role of a bridging loan broker is to help you find a bridging loan. That sounds simple, but in practice what a bridging loan broker does is complex. There are some essential thingsthat you should expect from one.
The initial discussion
The initial discussion is where the broker takes their time to talk to you in order to have a full picture of your financial requirement, what you want to achieve, your financial circumstances and whether the purpose of the loan is time-sensitive.
You will need an exit strategy, which is a plan for when and how the bridging loan will be repaid. This will also affect how long you need the loan for. The broker can advise you on your exit strategy and tell you if it needs changing.
Once the broker has the full picture, they can then find the most suitable lender for your loan. For example, you may need a bridging loan to pay the balance owed on property purchased at an auction. In this case, it could be that a lender that specialises in auction finance is the best lender for you. If the loan funds are needed in a hurry, the broker will know which lenders can process the loan quickly.
The initial offer
Your bridging loan broker should have a good knowledge of many lenders and their products to enable them to match your financial requirements with the best borrower. Finding the best deal is not just about the lowest interest rates; some lenders have incentives such as free valuations or reduced fees. Your broker should have up-to-date knowledge on all the latest offers.
The broker will approach one or a few lenders with your loan proposal. If a lender approves your loan application, you will receive an initial offer. This can often be done within an hour.
If you are happy with an offer and its conditions, the broker will guide you through the loan application process.
The application process
The broker’s role does not stop after the initial loan offer. To complete the loan application, you will need a number of documents to prove your financial status and that you can afford to repay the loan. If purchasing property, a valuation report is required and there is essential legal work. The brokers should make sure that all processes go smoothly and advise you on providing the correct documentation.
If you need the funds quickly, the broker can liaise with the lender, the valuer, and the legal team to make sure that there are no delays.
Talk to Ascot
A good broker does a lot more than just find you a loan.
If you want a bridging loan, contact Ascot Mortgages to talk to a bridging finance expert about the process. If, after a detailed discussion, you want to go ahead with a loan application, we will do our utmost to make the loan application process go as smoothly as possible.