Speed of decision-making key to brokers choosing a bridging lender
82 per cent of brokers stated that the speed of decision-making ranked top in their three most important requirements in selecting a bridging lender, with low rates for clients stated as the third most important consideration.
No-one stated rewards or loyalty incentives were an important requirement when choosing a lender and only 1 per cent of brokers considered higher procuration fees as a reason for selecting one lender over another.
Tick your top 3 most important requirement when selecting a bridging lender?
Of the 173 intermediaries and brokers questioned, almost 34 per cent stated that the amount of short–term bridging loan business being placed was marginally or significantly higher than the preceding 12 months, with 41 per cent maintaining a steady rate of bridging deals. This bodes well for the bridging industry as a whole, suggesting it will continue its impressive growth into 2013.
73% of respondents identified purchasing investment property at auction and urgent purchase of a property pending arrangement of a long-term mortgage, as the primary uses of short-term bridging finance by clients. The increasingly innovative ways in which brokers are making bridging loans work as a short-term funding vehicle, demonstrates how alternative lending is becoming a more accepted solution for short-term finance needs
The negative perception of bridging was felt to be bridging’s biggest problem, closely followed by lenders unwilling to consider security properties from outside of the M25.
Which of the following do you believe is the biggest problem in bridging?
Speaking about the survey’s findings, Chris Wilson, Director at Central Bridging Loans, said: “Central Bridging Loans is committed to engaging with brokers and any feedback is vital to enable us to evolve our product range and improve our service.
“One of the key messages to come out of the survey is the negative perception of our industry. Principal lenders like ourselves need to work closely with organisations like the AOBP to combat this and help raise the profile of bridging as a positive form of alternative finance.”
He added: “As part of our on-going expansion plans for 2013 we have introduced new streamlined procedures for the submission of case information, speeding up our approvals process. From the survey this was identified as the single most important element of working with a lender.
“CBL would like to thank all of the participants that took part in the survey.”