In a recent bridging report, half of the respondents cited ‘reputation of the lender’ as an important consideration. This was particularly true for finance brokers that transact less than £100m in bridging business each year, which in probability, will relate to most bridging loans brokers in the UK.
The report also revealed that 58% of respondents cited ’speed of execution’ as very important for a customer when choosing a bridging lender, which is consistent with the results of the previous year’s survey.
A further 46% of respondents cited ‘high quality service from the lender’ as a very important consideration, which was up from 37% the previous year and 23% of respondents chose ‘funding flexibility’ as the most important capability when choosing a bridging lender. The research suggests that customers may in some cases value certainty of funding, speed and quality service, over low pricing.
Craig Upton, Marketing Director of UK Property Finance and not afraid to put his face out there, commented: “These research findings give us valuable insights into the most important considerations of borrowers when selecting a bridging broker or lender.
“What is interesting is reputation is becoming increasingly important to the decision-making process and we have witnessed this trend amongst our customers. Reputation is not just a ‘nice to have’, but a commercial necessity for brokers and lenders alike.
“Over the years, we have worked hard to build a strong reputation for speed, flexibility and service excellence, which revolves around being able to directly access appropriate finance for all situations, whether straight forward, or those requiring unique lending solutions.
“Our dedicated and highly experienced team of processors work closely with all stake holders to overcome hurdles and to ensure completion in the quickest possible timeframe. We understand that investors are often put in situations where finance is required quickly but unfortunately, they often do not fit the criteria of larger institutional lenders.
“An example of this was when we were approached during the lockdown, for a capital-raising bridging loan needed for a partly completed renovation project. The investor had taken a bridging loan to purchase a derelict property from auction, but the original bridging loan was now overdue and needed refinancing off a penalty rate. Additional funds were also required to complete the over-running renovation costs.
“We arranged finance with a lender who was willing to use the valuation from the original purchase and additionally without needing external legal work. The new lender was also willing to refinance another bridging loan, on a still, dilapidated property. The £430,000 completion took place within four days from initial contact, enabling the investor to continue with the development project throughout Covid-19.”
UK Property Finance is a whole of market finance broker specialising in the provision of niche property finance such as bridging, all types of mortgages, second charge loans, development finance, commercial finance & equity release. The team at UK Property Finance are all highly experienced with both regulated and non-regulated products and hold the required FCA or industry qualifications.
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