Bridging Finance Summary - Why use a Bridging Loan Broker?

What is available in today’s market place and why use a Broker to place your Bridging Finance application?

If you’re looking for a Bridging Loan it is most likely to be for one of the following reasons:

· Capital Raising *
· Chain Breaking
· Refurbishment
· Speculative Deals
· Business Cash Injection
· Defective Property
· Development Finance
· Commercial & Residential Refinance
· Commercial & Residential Purchase
· Auction Purchases

* For any legal purpose.

Searching on Google will give you the obvious Primary Bridging Lenders out there, but perhaps only 25% of the Short Term Finance providers that exist.

Using a Broker for a Bridging Loan is often associated with additional cost, but in reality most Lenders charge the same arrangement fee whether the case is submitted via a Broker or not.

If their fee is 1.5% of the loan they may pay the Broker 0.5% of that. If the case is applied for directly they will charge 1.5% anyway.

With rates ranging from 0.75% up to 2.5% per month, choosing not to use an expert to place your case can be very costly. An additional 0.5% Broker Fee can be easily negated if you are paying 0.5% over the odds per month!

Fees and terms aren’t always as clear with non-regulated finance, although most lenders do make the upmost effort to make them transparent. Below are the fees you need to look out for and make sure they are detailed fully on your offer of terms:

· Administration Fees
· Arrangement Fees
· Legal Fees
· Completion Fees
· Valuation Fees
· Exit Fees **
· Broker Fees (normally non-disclosed)

** A fee charged to redeem the loan, typically equivalent to one month’s interest payment.

What are our Niches?

· Open Market Value Borrowing
· 100% of purchase price
· Large Loan Bridging Finance
· 24 hour funds
· No upfront fees
· Non Status Bridging Loans

For a no obligation Bridging Finance quote, please do not hesitate to contact us.