New lenders making it difficult to find best bridging finance deals
According to the Association of Short term Lenders, in the last quarter of 2017, a record £1 billion was lent in bridging loans, an increase of 19.6% on the previous quarter. Part of the reason for this increased lending activity is the number of new lenders that have entered
the bridging finance sector. With so much choice, it can be difficult to know which is the best bridging finance deal.
Many individuals and businesses seeking a loan go to a large bank for a bridging loan. They may not necessarily get the best loan deal from a large bank. Large financial organisations tend to have strict inflexible lending criteria and could refuse a loan application.
There are several small independent bridging finance lenders. These often offer good interest rates or favourable loan conditions. Small lenders are often prepared to spend time examining a loan application and will be more flexible when it comes to approving loans.
With a lot of lenders competing for business, interest rates are kept low, and some lenders offer incentives such as free valuations in order to be competitive.
A bridging loan broker can provide unbiased advice. They will know a wide range of lenders and match the right lender to their clients. If a large lender is the best option, then this is whom they will recommend, or they will find a smaller specialist lender that is a more suitable.