Faster bridging face to face
Brokers and borrowers working to get a lender all the information it needs should cut delays and secure a bridging loan speedily – especially when negotiations are face to face, according to Alternative Bridging Corporation (Alternative).
Brian Rubins, pictured, Director at Alternative says:
“For most bridging loans there is no purpose in meeting before the lender has reviewed the broker’s proposal. Commercial loans and residential development finance are more complex, yet often larger and offer highly profitable opportunities for enterprising brokers and to lenders prepared to get a clear understanding of the proposal.”
For commercial loans, this means details of the lettings and the income generated, intentions as to improvements and the borrower’s ability to sell or refinance are paramount. For development finance, there is the question of phasing, the conditions in the planning permission, the developers experience and track record and understanding the construction procurement, any Section 106 Agreement and cashflow forecast and appraisal.
“As soon as the lender can confirm the application is of interest, this is the time to talk. Sitting face to face, it is so much easier to obtain detailed explanations and it is a two-way process. It is a time for the lender to discuss and understand the opportunity and for the borrower and broker to learn and discuss the lender’s terms, conditions and requirements. It looks obvious but this way of working is not offered by all lenders and is often resisted by the broker.”