Why Use a Bridging Loan Broker?

Bridging loans are a type of short-term financial funding helping you finance the gap between a purchase and arranging a longer-term source of finance. They can be used for many purposes but are most commonly used for buying properties, developing or refurbishing properties, buy-to-let investments, paying tax bills, business ventures & divorce settlements. But as with any financial commitment, it’s essential to understand what you’re entering into before you begin the application process, and a bridging loan broker can help you along the way.

What is a bridging loan broker?

A bridging loan broker connects you with a bridging loan lender. Their role is to help you find the right deal for your needs and work with you throughout the process to ensure your loan completes smoothly.

A broker represents you as their client, not the lender, and should focus only on your best interests. 

Do you have to use a bridging loan broker?

Of course not. But whilst you don’t have to utilise the services of a broker, they will have the experience to understand your situation and the marketplace to get you the best bridging loan available.

They are likely to have relationships with multiple providers to get you the best rates which you might not be able to achieve yourself. 

What are the benefits of using a broker?

A broker’s role is to discover the best lender for your circumstances and manage the process from start to finish. But there are other benefits to utilising a broker:

Discover the best rates.

A professional broker will fight for you, negotiating to get the rate as low as possible, lowering lender costs when possible, and working to overcome any flaws the lender may see in your application.

With each application assessed on its own merits, a broker’s role is to utilise their contacts to get you the best rates for your requirements.

Knowledge and expertise.  

Given how quickly the market changes, today’s ideal lender may not be the best tomorrow. This is exacerbated by the fact that varied geographic areas, client conditions, exit strategies, personal situations, and various other factors will influence lenders’ decisions.

Get everything done within your timeframe.

Managing your application from start to finish in such a short timeframe requires significant effort. Incorrect information can result in substantial delays. A broker takes care of a lot of the paperwork for you, allowing you to focus on tasks only you can accomplish, such as providing personal information and papers.

Reduced stress and anxiety.

The completion of any loan, especially one when speed is a factor, can be an incredibly stressful and anxious time. Utilising a broker can reduce those effects, especially if you have any worries or concerns as they will ideally be positioned to answer your questions and provide peace of mind.

A skilled broker will recognise when deadlines are approaching to ensure everything is completed on time and that the process is being dealt with and under control.

In summary

If you think you need a bridging loan to acquire short-term funding, a bridging loan broker will be able to assist you throughout the process. There will be fees associated with using a broker, but when speed is a factor and ensuring you get the best rates to ensure completion and peace of mind, you may decide it’s worth it.