Why Use a Bridging Loan Broker?

A bridging loan broker can make all the difference when it comes to securing property finance.

The property industry can be fast-moving. Sometimes a quick purchase needs to be made or work needs to be carried out and a bridging loan is often required to make this possible.  When an investor needs a bridging loan, they’re likely to need it fast.

Some investors have long standing relationships with their lenders and go directly to them, however, this is not always the best route to go down as there are always other options worth knowing about. And if you’re a first-time developer, chances are you simply won’t know where to start.

Getting the right bridging loan with the best terms is crucial for the success of your project. With that being said, here are a few reasons why using a bridging loan broker is a good idea.

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1. Save you money

Broker fees are the main reason people try and obtain a bridging loan themselves in a bid to save some cash. However, this is a very short-sighted problem as a broker could actually save you money.

A good broker will fight your corner, negotiate to get the best rate for you and reduce lender fees where possible. They’ll also do their best to overcome any negatives the lender may perceive with the application that you might not be able to do yourself.

As bridging loan applications are assessed on a case by case basis, it pays to have an experienced ally working with you to get the best deal for you.

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2. Save you time

Bridging loans are often required as a fast-financial solution, whereby the funds need to be available as quickly as possible in order to make a purchase or carry out some work.

Dealing with an application on such a short timescale involves a huge amount of work and experience. For the application to run smoothly and for the funds to be available quickly, a lot of organising, negotiating and attention-to-detail is required. Any delays could mean a deadline is missed and an opportunity is lost.

Going through a price comparison site may sound like an easy option, but often the quotes provided are not the same as the final offer.  This is because there are many factors that are considered by each lender, making it very hard to give accurate figures upfront.

A broker will approach the lenders with a tailored application that will make your business appeal to them based on their requirements.

Experienced brokers are often able to secure a deal within 24 hours, dealing with all the legwork and leaving you to focus on other areas of the business.

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3. Access the whole of the market

When you go directly to a bridging lender, you miss out on thousands of competitor options that could offer you better rates, more money or a more flexible agreement.

Additionally, as the market evolves so quickly, the best lender today may not be the best tomorrow. This is further compounded by the fact that lenders often have different requirements, from geographic locations, client circumstances, exit routes, income - just to name a few.

A broker will be able to access the whole of the market and approach the best lender for your project.

4. Reduce stress

When the perfect project or opportunity arises, requiring finance quickly can feel stressful when you’re working against the clock. Then when it comes to getting your application in place, the information required can make the situation even more laborious – especially if you have no previous experience.

A broker can take away some of this pressure by handling the application for you and making sure it is being processed within the timeframe of your deadline.

They’ll chase the right people and closely control of the process, so you don’t have to.

5. Independent advice

While it’s possible to get a bridging loan yourself, understanding everything that is required and completing the application correctly is no easy task. If done wrong, you could waste a lot of time and miss your deadline – hassle that no property developer wants.

With a bridging loan, there are often elements of negotiation in the deal that most people won’t fully understand. A broker will break things down into simple terms so that you know exactly what you’re getting, as well as ensure you aren’t overrun in negotiations by people with more experience.

A commercial brokers’ knowledge and experience is invaluable. They know the industry inside-out and can ensure you get the best finance solution to help you reach your end goal.

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At Ramsay & White, we specialise in securing finance for first-time and experienced developers and investors.
Loans up to 100% purchase price | Terms from 1 month | Market Leading Rates