Beware brokers in lender’s clothing
By Bridging Loan Directory -
Short-term lenders and their potential borrowers are under threat from brokers either masquerading as lenders or making extravagant promises which they can never fulfil thus causing borrowers confusion and delay, according to Alternative Bridging Corporation Limited (Alternative Bridging).
These ‘blenders’ use exaggerated claims in their advertising supported by Search Engine Optimisation to attract potential borrowers looking for a certain lender, pulling them unwittingly into the blender’s website. Once there borrowers are besieged with false promises and offers such as: ‘completions within 48 hours’, ‘immediate decisions’ and ‘access to exclusive products’.
Borrowers and brokers are urged to ask questions when presented with an enticingly low interest rate. Ask is this really from a lender or is it a broker in lender’s clothing? Is this low rate for any LTV or only up to 50%? Is the interest rate being subsidised by a large up-front fee and then subject to significant increase after three or six months?
Brian Rubins, managing director of Alternative Bridging Corporation Limited said:
“We have a market in disarray and customers in real danger of losing opportunities or worse because the loans they are negotiating are delayed or illusory and become far more expensive than was at first promised. Of course there are both lenders and brokers who are honest and transparent. We urge borrowers and their brokers to use caution when looking for a lender – make sure you are really dealing with a lender and always ask questions if a deal looks too good to be true. As the saying goes, it will be.”