The importance of finding an experienced bridging lender

In an article produced for FIBA Advantage magazine, we discuss how vital it is for brokers to find and use an experienced specialist lender.

A bridging loan is a type of short-term finance, which enables a borrower to access funds extremely quickly. Bridging loans have many advantages, including:

Quick decisions for a fast turnaround – funds can be made available promptly and in some cases within a matter of days.

Customised solutions – each loan is evaluated on its individual merits and the solution can be tailored to the borrower’s specific needs and requirements.

Flexibility – most bridging lenders are not bound by the restrictive loan conditions other finance options are tied too.

As the appetite for bridging loans has increased significantly over the last few years, there have been many more bridging lenders entering the marketplace. However, the specialist lending industry remains a specialised area, meaning the need to find an experienced bridging lender is paramount for both broker and borrower.

For a broker whose core business isn’t bridging finance, finding a good bridging lender who can deliver the funding their client is looking to achieve, within their specific timeframe, can at times appear tricky.

The industry is filled with a multitude of specialist short-term lenders providing a vast range of products, which can become overwhelming to anyone inexperienced to the industry. The important thing as a broker, is to ensure product suitability and service quality is prioritised at all times.

Brokers can identify experienced lenders who set themselves apart from their competition by recognising the following:

Transparency is key. Transparency, consistency and integrity are all vital traits lenders need to possess in the specialist finance industry. Of course, speed is crucial in the bridging process, however if a lender is not transparent, this can be very damaging for all parties involved. At Hope Capital, we pride ourselves on absolute transparency at all times. For example, we do not charge any hidden fees; this means clients are not going to get caught out somewhere down the line with costs they were not aware of at the outset.

Effective communication is essential. Providing clear and accurate communications has and will always be vital. Proactive levels of communication ensure all parties involved are on the same page and can prevent any potential issues arising. Ultimately, good communication will help to develop a complete understanding and relationship with the broker, borrowers and all other parties involved, such as solicitors and valuers.

Products for all types of borrowers. It is a lender’s responsibility to deliver innovative, flexible, tailored solutions which consider the needs of individual customers and caters for the requirements of different borrowers, their circumstances and their level of borrowing. The best bridging lenders will keep a close eye on the market and create the most suitable solutions to meet what is needed.

Innovation will lead the way. Innovation is becoming increasingly integral in the bridging finance market. The market moves at a fast pace, leaving behind the lenders who do not adapt to changes. If a bridging lender prioritises investing in innovation, they will be able to make a huge impact on how quickly buyers can reach completion and improve the quality of the overall experience delivered.

It is no secret the property investment landscape has changed significantly over the last two years. Couple this with the changing needs and expectations of brokers, it is therefore essential that as a lender speed and an excellent level of service are always delivered.

At Hope Capital, we have been delivering innovative bridging loan solutions for over 10 years. We are renowned for delivering competitive rates and loans for all property types and purposes, with exceptional service, transparency and speed.

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