How to Choose a Bridging Loan Broker?
With so many lenders to choose from and substantial variances in eligibility policies, selecting the right bridging loan broker is essential to secure quick, affordable borrowing.
Business finance broker is an independent, whole-of-market broker with years of experience in the bridging finance sector.
Here we'll explore what you should look for in your broker, and what different services are available.
For more information, or to get your bridging loan application started, give us a call on 0330 304 3040, or drop a message to [email protected].
What Type of Bridging Loan Broker is Right for Me?
There are lots of different brokers, and some of the categories we cover include:
- Bad credit bridging loans.
Specialist brokers and lenders can offer alternative financing to applicants with bad credit history who need niche borrowing. In this situation, the strength of your exit strategy is key to securing affordable rates.
Our team works with applicants with all sorts of credit issues, including low credit score, missed mortgage payments, CCJs, DMPs, IVAs, repossessions and bankruptcy.
Provided you have a viable proposition and can prove how you will pay back the debt; you can usually find competitive bridging finance.
Many lenders steer clear of new property developers seeking a bridging loan and require a minimum number of years experience.
The Revolution Brokers teams work with first-time investors of all sizes, securing affordable bridge finance by negotiating with niche lenders who offer flexible lending policies.
- Unusual bridging loan projects.
Just as with mortgages, non-standard properties are considered a higher risk - so if you need a bridge loan to buy commercial premises in a particular sector, you need a lender who has experience dealing with non-standard bridging loan applications.
- Commercial property bridge finance.
In some cases, lenders will offer bridge loans for residential investments, but not for commercial properties. Others exclude particular types of commercial buildings, such as restaurants and petrol stations.
- Second charge bridge borrowing.
First charge bridge loans are easier to come by since the lender has the assurance of holding first charge security against your property.
Suppose you have an existing mortgage and need a bridging loan as a second or third charge. In that case, you can find a bridging loan through a lender with a different risk policy but will need to prove you have sufficient equity, and usually require a higher deposit level.
Should you not have a deposit available, you might struggle with some of the larger bridging loan lenders who offer LTV values capped at around 70% or 75%.
There are 100% bridging loans out there - so it's a case of demonstrating that you have sufficient security to make the loan an acceptable risk to a lender.
