Brokers need to turn to niche products like bridging finance and loans in order to stay profitable during tough times.
There's little doubt that the property market is slowing down. Part of the problem is that some buyers are finding it more difficult to get mortgage approval as banks and building societies toughen their lending criteria and reject more applications. Whilst all the talk is about banks and buyers, brokers are often forgotten. Fewer mortgages means less commission for the brokers which is why many are turning to bridging finance and loans.
Why brokers turn to bridging loans and finance
Bridging loans have always required the borrower to prove that he or she has the means to pay off the loan. That's because bridging loans and finance are typically short-term arrangements, offered at slightly higher interest rates to those who can show that they already have an exit strategy in place. By "exit strategy", lenders mean a way to repay the loan – often by remortgaging for the full market value of the property. The fact that stricter lending conditions have always been in place for bridging loans and finance means that these products are not as susceptible to problems as traditional mortgages, and may become a life-saver for mortgage brokers.
Finding the right bridging loans and finance advice
It's important to realise that just because brokers turn to bridging loans and finance in tough times, it doesn't necessarily follow that they will be able to give you the best advice. All brokers have to follow a code of conduct, so they can't give you misleading advice, but they simply may not have the time to build up the expertise and market knowledge that you need when it comes to arranging bridging loans and finance. That expertise is important because your bridging loan plays a vital part in a successful property deal. You need to be sure that your broker or adviser can get you a loan that has the terms and conditions you need at a competitive interest rate and with a lender that you can build a relationship with as your business moves forward. Not all general mortgage brokers will be able to offer you that service, so although they may turn to bridging loans and finance in order to keep their businesses up and running, you will still benefit from talking to a bridging loans specialist.
Faster Bridging Finance has developed a new approach to commercial bridging loans that saves you time, money and hassle. Developed specifically to help those who invest in property occasionally or who have large property portfolios and want to be able to get cash out quickly, the service uses a dedicated mortgage broker and conveyancing solicitor so that there are no hold-ups, just a straightforward bridging deal. To find out more about how Faster Bridging Finance can help you, order your Free report now, call us on 01908 423717 or email finance@fasterbridgingfinance.com.