Should you go for low rates or quick deals?
Individuals or businesses who need bridging finance are often faced with two choices – a quick deal or low rates.
Obviously, borrowers want a loan at a low interest rate. They may also want the loan to be arranged as quickly as possible. In many cases, these two expectations are incompatible. The bridging finance broker’s responsibility is to establish realistic interest rate expectations and explain to the client why a loan may take a little longer.
There are many reasons why a loan can be delayed. If the loan is for property and there are issues with the property, or the borrower has a poor credit score then this may require extra time for a loan application to be approved. If the borrower’s solicitor is not familiar with the conveyancing requirements for a bridging loan, they may take longer to complete the legal work. Loan funds will not be available until the legal process is complete. A broker should recommend that the borrower uses a solicitor with an expert knowledge of the bridging loan legal requirements.
There are many reasons for a bridging loan, whether it is to break a house buying chain, ease cash flow issues, conduct property refurbishments, finance business deals or finance property purchased at auctions. Many lenders specialise in a particular area, and a quality bridging loan broker will match their client’s individual requirements with the right specialist lender who can offer good interest rates and have the funds available within a reasonable time period.