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.