View more on these topics

What brokers really want from bridging lenders


When choosing a bridging lender, brokers look for speed of response, transparency, flexibility and certainty of completion

Figures from the Association of Short Term Lenders show that demand for bridging loans soared in the last quarter of 2016, finishing the year at £2.88bn.

As volumes look set to rise again this year, low rates and fees are only part of the mix for brokers looking for bridging loans. When considering which lender to use, they tend to look for speed of response, transparency, flexibility and certainty that the transaction will be completed.

Showing consistency and being able to deliver on promises made to brokers and their clients is vital. It is also important to remember that, for privately funded bridging firms, every loan enquiry received goes directly to a decision maker. This enables them to give a decision in principle within hours of the initial enquiry, and reassures the broker that they will not let down their clients.

Specialist providers of loans that use 100 per cent private funds and do not have any outside investor influence pride themselves on their flexibility; they are not bound by conditions and restrictions that affect other bridging companies. This means they can decide on their lending criteria and which loans to facilitate.

Due to rising inflation and the lingering economic uncertainty, bridging lenders must be completely transparent and clear about the way they do deals.

This also helps build trust and long-standing relationships with clients while ensuring a high level of service.

Maintaining credibility and good client relationships is vital for brokers. With this in mind, lenders must be particularly careful in ensuring everything adds up, and should be honest when, realistically, deals are not going to complete. As we have seen, conditions can quickly change.

So, as well as offering brokers a clear, speedy and flexible service tailored to a borrower’s financial requirements, providing that level of certainty is crucial.

Jonathan Sealey is chief executive of Hope Capital



Profile: Atom Bank’s Maria Harris on shaking up mortgages

Atom Bank’s vibrant culture and use of tech are intended to make it stand out and to improve the customer’s experience of the housebuying process Maria Harris, Atom Bank director of retail mort­gages, thought she had said goodbye to the banking sector for good, in favour of the cosy world of mutuals. So it was […]


Private rental demand cooling: BM Solutions

Demand from UK residential renters is flattening off, according to research from BM Solutions. The research shows that 45 per cent of landlords saw no change in demand from tenants in the second quarter compared to the first. Meanwhile, London was the only area of the UK to see a fall in demand. More than […]

The top ten most-read stories this week

As Friday draws to a close, here are the ten most popular stories published by Mortgage Strategy over the last week. Unsurprisingly, Budget-related stories dominate the list. However, the market also showed an interest in breaking news about building societies and estate agents. But fittingly for a ‘people industry’, the most-read story was a profile […]

Burnett: what needs to happen for value to start performing again?

Value stocks have significantly underperformed growth stocks in Europe in the past decade. However, Rob Burnett, manager of the Neptune European Opportunities Fund, believes we are now approaching an inflection point. Watch the video below to find out more. In the video, Rob discusses: How low inflation and loose monetary policy since the global financial […]


News and expert analysis straight to your inbox

Sign up