Loan application decline may not be end of finance options
Many borrowers who are refused a loan are borderline cases that only just fall below the lending criteria. An applicant who has had their application declined may still be able to obtain finance.
A broker will be able to assess the application and find an alternative lender that is prepared to offer a loan. If the application is regarded as high risk, then the interest rate may be higher. A broker will be able to advise on any changes to the loan application that will make it easier to get a loan approval.
Many people turned down for a commercial mortgage may still be eligible for bridging finance providing that they can repay the loan within a short period of three years or less. Bridging finance lenders have a more flexible approach to lending than high street banks. They may also be prepared to lend to people who have been declined a loan due to a poor credit score.
A bridging lender will consider the value of the property used as security for the loan. They also need to be satisfied that the exit strategy, the when and how the loan will be repaid, is achievable.
Bridging finance brokers should be able to get an initial loan offer in less than a day, usually within an hour or two. They can also assist the borrower in providing the documentation needed to support the loan application.
A no to a loan application is not necessarily the end of all finance options.