October 2nd, 2013. Ben Lloyd
Why would you use a bridging loan broker?
When you are in need of a quick bridging loan, do you think like most people and go directly to a lender in order to talk to them face to face? Many people believe that this is the best way, arguing that it is the most direct, honest and personal approach you can take. However, it is not the smartest way to go about this process. To get the best deals you should use a bridging loan broker – here’s why:
When you go directly to your lender, you miss out thousands of their competition – people who could offer you much better rates, more money or even a more flexible contract. Trying to get a good estimate of who is cheapest through price comparison sites may sound like an easy option, but often the quotes you receive online won’t be the same you’re offered.
This is because there are many factors that need to be met by each lender, many of which are different, making it very hard to give accurate figures that can be compared. A broker will approach every lender individually with a tailored applications that will make your business appeal to them – getting the best possible quote.
Obviously, you could go to every possible lender yourself but do you know where to start? Do you know which lenders prefer providing bridging to contractors and those that only provide bridging for auction buys? Commercial brokers know lenders inside and out, saving you hours of research and wasted time while getting you the best possible deal on the market.
Let’s talk money
What puts many people off using brokers is their fees. This is a very short sighted problem, thinking you can save some cash by doing it alone. However, think about the amount of money you could be spending every month that you don’t need to be! If you’re paying just £85 a month extra that works out at over £1,000 a year you are needlessly spending, when you work it out you would probably be saving more using a broker, fees included. It’s not just the money you’re saving either, it is a whole lot of time!
Time is money
Bridging is a fast financial fix, meaning that you need the funds available as quickly as possible in order to make a purchase or carry out some work. When time is of the essence you may feel that getting the loan yourself is the quickest way to do things, but brokers are able to seal a bridging finance deal within 24 hours – think of it as you racing a VW Golf against Jensen Button in his F1 car, sure you may be quick, but the professionals have more training and are better equipped. Using a bridging loan broker means that you don’t have to worry about securing finance when making a quick buy, giving you one less thing to worry about during this vital transaction.
Article By Ben Lloyd
October 2nd, 2013
Ben is the Director and Co-Founder of the Pure Group and Managing Director of Pure Property Finance.
Following a career in Barclays, where Ben was in the real estate finance team for 8 years, he decided that the market needed a more forward-thinking type of commercial brokerage so founded Pure Commercial Finance (now Pure Property Finance), the first company within the Pure Group.
Ben has extensive experience across the real estate sector and has participated in over £2bn of real estate transactions during the course of his career.
Ben oversees the general strategy at Pure Group and works with the senior leadership team to drive the Group forward. Ben is also on the Executive Committee of FIBA.See more articles by Ben