The bridging market has almost got to a place where it is no longer an optional extra. For about a decade now, bridging has been about so much more than just buying at auction or helping people to buy one property before their last one is sold. Of course, those uses are still valid but there are now so many more.
For developers bridging is often their funding of choice either to refurbish an existing property, or for ground up development. Others use it at the end of a development loan to give themselves a bit more time to finish landscaping perhaps and market their new properties in order to get the best possible price. Even businesses use bridging now, secured against premises, as a quick source of funding to help them capitalise on a deal or even buy stock.
Brokers who aren’t aware of what bridging can offer their clients may well be missing out on opportunities to help them.
Some brokers may be held back by old beliefs about bridging being too expensive or by stories of bridging lenders of yesteryear, but many of those beliefs no longer hold true. Rates have fallen dramatically over the past few years and are now considerably lower than they used to be.
Of course, there are a range of bridging lenders who offer different types of loans at different rates. Some are more automated and therefore offer lower rates as there is less human interaction. Others, such as Hope Capital, look at every case on an individual, bespoke basis, often granting loans on more unusual property or in more unusual circumstances, always turning it around rapidly and offering a personal service.
For brokers new to bridging, pick up the phone to a lender such as Hope Capital and you’ll find BDMs and underwriters will be happy to talk through the situation with the client, what they are looking for, what information they need and how quickly that can be turned around, talking the broker through each step of the process.
A key thing to look out for is to make sure that the interest rates and charges of whatever lender you use are clear and transparent, as is the way that interest is calculated. This is not only good practice, but it makes it easier for the broker to understand what is on offer and to explain it to their client.
Bridging is increasingly mainstream, but offers a level of service not often seen with more mainstream lenders: the reasons to get involved are to provide your clients with solutions that include quick, bespoke finance for a variety of uses, all secured on property.