Bridging finance is a useful way to raise short-term cash for both individuals and businesses. There are many bridging finance lenders that provide a variety of options. You can approach them yourself, but there are several reasons why it is better to use a bridging loan broker.
Making expectations real
Borrowers often come with expectations. They may be convinced that a bridging loan application will be successful. They could have an idea about how much the loan will cost including interest and fees. A bridging loan broker provides a realistic depiction of the process. They can advise on what information the borrower needs to provide for a successful loan application. The brokers can also explain the fees charged and how the interest rate is calculated.
A broker can help the borrower choose from the various types of bridging finance. Closed bridging loans have a specific repayment date, while open bridging loans have a more flexible payment date. A broker will explain the differences between these loans types and advise on which one is best for the borrower.
All lenders require an exit strategy, which is when and how the loan will be repaid. A broker can make sure that the exit strategy is realistic.
The best deal
With fierce competition among lenders, there are some good bridging loans deals available. A broker will be able to find the best deal and even find a bridging loan deal that is unavailable through going direct to a lender.
A broker will be able to match the best deal to a borrower’s individual circumstance. An individual may need to approach numerous lenders to find the best deal on their own, whereas a good broker may only need to approach a handful of lenders who they know are likely to provide the best deal.
There are many lenders who specialise in a particular area. For example, some lenders specialise in providing loans for people purchasing property at auctions. A bridging loan broker will have a wide knowledge of these specialist lenders and recommend the best ones.
Most bridging loans will be secured using property. This will involve lawyers and a property inspector. A good broker will be able to lease between these experts and the borrower so that all the legal and administration procedures go smoothly. This can often speed up the process so that the legal and valuation processes are quicker.
If a borrower does not already have a solicitor to represent him in a property deal, a broker can often suggest a suitable solicitor who specialises in property purchases.
Not just bridging
These are just a few of the many reasons why it is preferable to work with a bridging loan broker if you need a short-term loan. Talk to Ascot Mortgages about your borrowing requirements and we will find the best bridging loan deal for you. If the reason for a bridging loan is to raise funds quickly until a more long-term loan solution is available, we can also arrange long-term financing options.