Choosing between low rates and quick bridging loans
There are many bridging finance providers, with some offering low rates and others focusing more on delivering speed.
Lenders that offer low interest rates tend to be cautious in their criteria for accepting a bridging loan application. This can mean that the application process takes time for them to examine and assess. Other lenders have a more flexible approach, but may charge higher interest rates, meaning borrowers are left with some thinking to do in deciding what sort of loan to apply for.
A broker should be able to match a client’s needs with the right type of lender. If time is not an issue, going for a lower interest rate could be preferable. If a borrower wants to complete a property purchase quickly, a lender that can provide a fast service is better.
If the loan is complex, or the borrower has a less than perfect credit score, the broker should be able to match them to a lender that is prepared to provide a loan for these situations.
Bridging loans are not a standard product like conventional loans or mortgages; each loan application is looked at on an individual basis and interest set according to the risk assessment. Without a broker, it is difficult to find the best lender.
The UK has a wide variety of bridging finance lenders and a good broker will have a sound knowledge of each lender and how they operate. The broker can then pair the borrower with the bridging loan deal that suits their individual requirements.