43% of brokers surveyed by United Trust Bank’s said that the most common reason for bridging loan proposals falling through is poor property valuations.
Valuation issues were significantly ahead of the next most frequent reason which was the customer changing their mind (16%).
78% of brokers dealing with bridging finance routinely complete more than half of their bridging loan cases, with 13% of brokers said that 90% or more of their bridging loan proposals complete.
49% of the brokers who responded to the survey indicated that they now charge a fee even if the loan doesn’t complete and a further 18% are considering introducing such fees.
“The results of this survey highlight more than ever how important it is for brokers to enquire more thoroughly into the details of a client’s property before instructing the valuation,’ explained Alan Margolis, head of bridging at United Trust Bank.
“For example, simple measures such as carrying out a quick comparison on a property sales website or even looking at the property on Google ‘street view’ might reveal something relevant to the property’s valuation which the client may not have mentioned.
“With fewer unsuitable cases reaching the valuation stage, brokers will have more time to concentrate on those deals which stand a genuine chance of completing and will substantially increase their success rate.”