Over the past few years, the UK’s bridging finance sector has grown and evolved practically beyond recognition. Once fairly small and heavily scrutinised, the short-term lending market now plays an essential role in supporting many thousands of businesses and households across the UK.
In particular, the appeal of bridging finance is attributed to its three defining characteristics:
1. Speed - with all the necessary paperwork and documentation in place, it is possible to arrange a bridging loan within just a few working days.
2. Flexibility - unlike conventional loans and mortgages, there are no restrictions on how capital raised with a bridging loan can be spent.
3. Affordability - with monthly interest rates as low as 0.5%, a promptly repaid bridging loan can be a uniquely cost-effective short-term facility,
Applying for a bridging loan is fairly straightforward and can be approached in one of two ways. One option is to submit your application directly to any given lender while the other is to consult with a specialist broker.
On the surface, involving an intermediary may seem unnecessary. It could also be seen as an additional cost and complication, which can (and should) be avoided.
But with such a vast range of bridging loan options to choose from, applying with the help and support of the best bridging loan provider comes highly recommended. Not just to ensure you choose an appropriate product to suit your requirements but to gain access to several other major benefits.
Examples of which include the following:
1. Speed and simplicity
Broker support paves the way for a streamlined and simplified application process, which can make all the difference when time is a factor. More often than not, a bridging loan arranged with the help of a specialist broker can be accessed exponentially faster than if the same product was applied for without support.
Your broker will help ensure all aspects of your application are in order before its admission, helping minimise the risk of delays and disruptions along the way.
2. Independent advice
It is not always possible to trust the advice you are given by a bank or lender. There will always be a degree of brand bias to factor in, and it is highly unlikely they will recommend the products and services of other providers. Even if they are clearly not the ideal lender for you, they may try to convince you they are.
With independent broker support, you gain access to impartial and objective advice that can be worth its weight in gold. Your broker will point you in the direction of the best lenders for your requirements, chosen from an extensive panel of top-rated providers across the UK.
3. Superior value for money
It is also the job of your broker to negotiate on your behalf, with the aim of reducing interest rates and keeping overall borrowing costs as low as possible. Brokers build and maintain good working relationships with the lenders they do business with, enabling them to access exclusive deals and discounts that would otherwise not be available.
Likewise, there are many bridging loan providers to offer their services to customers exclusively via broker introductions. They do not work directly with customers and therefore the only way to access their products is to enlist broker support.
4. It is free
The fact that all of the above is provided 100% free of charge makes it an offer too good to turn down. Brokers collect fees and commissions from the lenders they source products from, meaning there are no costs to pick up on the part of the applicant.The advice and support of an independent broker may be invaluable, but it is nonetheless offered by all reputable brokers for free