Bridging has become a key investment and project facilitating source of finance, assisting borrowers in securing lucrative investment opportunities, often within limited timescales. Each bridging case is unique, therefore brokers must take into consideration all of the borrower’s individual requirements along with the particular circumstances of the project, in order to select a suitable lender.
The bridging and short term property finance sector has undergone significant growth, with lenders introducing new interest rates, widening geographical lending locations and increasing lending limits, thus providing a range of highly competitive options for brokers to select from. Whilst it is necessary to consider the most preferential rate for the borrower, this should not be the only factor when selecting a lender.
Alongside a competitive interest rate, a high level of service and good communication should be deemed as key priorities when selecting a preferred bridging lender. Clear, concise communication plays a vital role in the success in delivering bridging loan agreements, and is essential throughout the application process. The lender, broker and borrower must work closely together and establish a transparent and proactive relationship to progress a case successfully. It is essential when selecting a lender that the broker is sound in the knowledge that they can rely on the lender to go ‘above and beyond’ to fulfil the borrower’s requirements and where required, to communicate any potential issues and ensure that delays are avoided.
By its very nature, the bridging industry is highly deadline driven, so fast decisions and reliability are essential. Brokers must be confident that they can rely on the chosen lender to fulfil the loan requirements within the given timescale. This confidence is achieved by working with lenders who have proven knowledge and experience of progressing cases quickly and efficiently, and overcoming any issues that they may encounter during the loan process. When dealing with time sensitive cases, it is this level of service, coupled with streamlined processes that a broker must ensure that the lender has in place.
Overall, when selecting a lender for a bridging finance case, it is essential that the broker considers all factors impacting upon the case, the speed with which the loan is required and the purpose for the loan in order to select the most suitable lender for the individual case.
Steve Woods is head of sales at Bridgebank Capital