Top Tips for Brokers on Finding a Good Bridging Lender

Top Tips for Brokers on Finding a Good Bridging Lender

If you are looking for a bridging lender to help fulfil a short-term financial need, it is important to not just choose one at random. While there may be a number of them around, it is important that you do choose one that is reliable and credible at the same time. Below are some tips that should help you pick the right choice.

Get to know your customer

Brokers need to understand that before they should start looking for a lender, being able to know their customers, as well as their needs, should be their top priority. The environment that they operate is increasingly regulated. This is why due diligence is essential to make sure that the type of product that they end up offering to their clients will indeed be just the right one for them.

Be aware of your regulatory responsibilities

It is important to properly document the process involved in you advising your client on the specific product that they have taken. Writing down why other products were not the appropriate option for them is good practice too as this is a good way of justifying why bridging finance is the right choice this time.

Weigh in on the options

Many mortgage networks tend to have relationships with many of the providers of bridging lenders around. They also tend to have their own preferred provider panel. While most will likely not stop you from approaching a bridging lender that is not part of their panel, it is important to approach every lender carefully. There are a number of new players in the market so being quite sure about whom it is you are dealing with is very important.

Processing fees can get expensive

Be aware that the processing fee involved in the bridging market tends to be higher when compared to the ones in the residential market. This can range from one to two percent. Be careful not to fall into some trap where some lenders will try to offer you a larger share. Always remember that what matters at the end of the day is that you can successfully justify why a specific lender was the right choice for the client that you are assisting and not for you.

Always do the math

Know that there is no such thing as a standard way of getting the interest in bridging markets calculated. There are lenders that will choose to charge simple interests. There are others that do compound. Still, there are those that would do compound on compound. It is easy for details like these to get overlooked. But since they can easily mean costing the borrower thousands of pounds in the process, making sure that you get this cleared up is essential before you officially get your client onboard.

Always read the fine print

Make sure that you are getting your client to take a loan with the right terms attached to it. This means the right fees as well. The best way to ensure that is to read the fine print and to raise as many questions as you can to truly determine if the bridging lender is indeed the right choice.

Learn more about finding the right bridging finance lender by reading about Richard Butler Creagh online.

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