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Bridging Loan Brokers: Find the Best Broker for Your Needs

A bridging loan is a short-term loan that’s used to bridge the gap between the purchase of a property and the sale of another property, or to finance a property development project. Bridging loans are typically secured against the property you’re buying or developing, and they allow you to get the finance you need quickly and easily.

Work with a qualified bridging loan broker to understand the different types of bridging loans available.

What is a bridging finance broker and what do they do?

A bridging loan broker is a professional who helps people find the best possible financial products and services for short-term and development finance lending. They have a network of and funding providers they can tap into to find a product to suit your personal circumstances.

Who are brokers most suitable for when seeking a loan?

Bridging loan brokers can help you obtain loan finance that you may not be able to get on your own. This includes situations when you have a gap between buying a new property and selling the existing one or when you are making major refurbishments, renovations or home improvements.

Property finance brokers can also be helpful for people who need a loan quickly. Traditional lenders can have long approval processes, but a broker can often get you approved for a loan much faster. Bridging finance may also be used when you have purchased a property at auction and you only have 28 days to provide funds. A short-term loan broker can help you find a lender who will consider your application and help you find the best interest rate, other terms and lowest charges.

Do brokers charge a fee on bridging loans and development finance?

Yes, brokers typically charge a fee for their services. This fee is usually a percentage of the loan amount – often 1-2%, and it is usually paid upfront. However, some brokers may charge a flat fee, or they may waive the fee altogether if you meet certain criteria.

How long do loans take to process/arrive using a broker?

How long you’ll have to wait to receive funds will vary depending on the lender, the type of loan and the broker. However, it is generally faster than getting a loan from a traditional lender. You can usually expect to have your loan approved and the money in your account within a few weeks.

What are the advantages of using a broker?

Using a bridging loan broker helps you:

• Understand the different types of bridging loans:
  • Bridging finance – when you need funds quickly to secure your new property before you have sold your existing one
  • Development finance – property investors may require funds for refurbishment or renovations on commercial properties
  • Auction finance – access funds quickly to buy a property at auction
  • Mezzanine finance – a type of business financing that’s a combination of debt (the loan) and equity (giving away shares in your company)
• Negotiate with lenders to get the best possible deal
• Prepare the necessary paperwork without errors or omissions
• Monitor your loan and meet the terms of your agreement
• Save time and stress during the application process

What are the disadvantages of using a broker?

There are a few disadvantages to using a property finance broker:

• They typically charge a fee which is a percentage of the loan amount
• You will need to give them access to sensitive information about your finances which you may prefer not to do
• Your options may be limited if the broker is affiliated or incentivised to use specific lenders

What warnings and red flags should I look for in a broker to avoid being ripped off?

Here are some warnings and red flags to look for in a broker to avoid being ripped off:

• They ask for a large upfront fee
• They promise you a loan that seems too good to be true
• They pressure you to sign a contract without reading it
• They refuse to answer your questions
• They have a poor reputation
• They don’t have a professional website or contracts
• The loan options they are offering appear limited
• They seem overly keen for you to use a specific lender

How do I find a good bridging loan broker?

You’re in the best possible place to find a trusted bridging loan broker as the best ones are listed on this page, so you can be confident that the service you receive will be excellent.

Here are some other suggestions on how to find a good bridging loan broker:

• Get recommendations from friends, family, or colleagues
• Look for brokers that have a professional qualification such as CeMAP, CPSP or are members of the NACFB
• Interview several brokers before choosing one
• Ask about their experience, their network of lenders, and their fees
• Get quotes from different brokers to compare the product rates and the brokers fees

Check out the brokers on the Bridging Loan Directory or if you have any questions, please get in touch with us directly.