In this blog, we will run through the benefits of trusting a specialist finance broker to find the right lender for your needs and manage the process through to completion.
1 – We Can Save You Money
A good broker will fight your corner, negotiating to get the rate as low as possible, reducing lender fees where possible and pushing to overcome any negatives the lender perceives on the case. With every application being assessed on a case by case basis, there will always be an element of negotiation and discussion. When entering this discussion, your only ally in the process is an impartial broker, working for you and of course it pays to have an experienced ally working to get the best deal for you.
2 – The Market Evolves Very Quickly and Lenders Work On a Case By Case Basis
As the market evolves so quickly, the best lender today may not be the best tomorrow, this is further compounded by the fact that lenders will lean towards different geographic locations, client circumstances, exit route, income requirements and many other factors. Every lender is extremely different, down to how their credit department view applications and are often guided behind the scenes by their funding source, meaning a lot of lenders can’t be as flexible as they would like you to believe.
2 – The Risk/Reward Ratio
The finance industry has always and will always run on the risk to reward principle. This means that a lender who charges the least, will have to reduce their risk, or could well end up out of pocket. In the world of bridging loans, they can do this by taking 2 routes, number 1 is being extremely picky about the cases they accept, meaning they decline a lot more clients than they ever lend to. This means that you’re very likely to suffer declined applications, which is not ideal as they have to be disclosed to other lenders going forward; a perceived weakness in your application.
The second method of reducing risk is to ask for huge amounts of information, checking every aspect of the clients’ circumstances to ensure everything is ok. This is a similar process to a standard mortgage and although it is nothing to fear, it does take time. Of course the more information involved in the processing of the loan takes, the more time it will take to complete. Slow bridging loans don’t tend to be in hot demand, but of course lenders also don’t tend to advertise the fact when they can’t complete quickly but shout loudly about any fast completions they manage.
3 – Time Saving
Dealing with your application through from initial application through to completion in such a short timescale involves a huge amount of work and the process of organising everybody to run smoothly, in tandem and repair disconnects between the different parties working on the process, somebody not receiving a document and then failing to flag it up for instance, requires constant attention. This would normally be a frustration, but when every hour is important and any delay could mean a deadline is missed, it becomes a far bigger problem. In most cases, it is simply not practical to take an entire week, or even 2 out of your life, just to focus on completion of your bridging loan. A finance broker will be able to manage a lot of the legwork for you, leaving you free to focus on the jobs that only you can complete, such as supplying personal information and documents.
4 – Reduction of Stress
When you’re really backed into a corner and being constantly asked for information, rushing to meet people for surveys and legal work, it is obviously extremely stressful. This is compounded massively if you’re losing time in your work and personal life by constantly being asked for further information and trying to manage a process alone that you most likely have little practical experience of. In this situation, it is useful to have an ally in the process that is there to provide an unbiased answer to any questions and is able to objectively judge if the application is moving as it should for in relation to the deadline you are dealing with. An experienced broker will of course know exactly how the process works and when the deadline that appears impossible is actually getting too close, when people need to be pushed and when they should be left to complete the task they are working on, this is invaluable in maintaining control of the process. A controlled and closely managed process is clearly far less stressful.
5 – Independent Advice
A broker is the gateway between you and your goal, we are on your side and our job is to get the best deal for your circumstances. This is true of all parts of the process, not just finding the right lender. With a bridging loan, there are often elements of negotiation in the deal such as the security offered, maximum loan, changes based on the contents of the survey report and of course, legal issues. We are able to work with you, fighting your corner to ensure you aren’t overrun in negotiations by people with more experience in the market than you will likely have. When dealing with a complex and important matter such as a bridging finance application, it really pays to have an expert on your side.