The short term fast bridging finance sector is a fragmented market place covered by an expanding group of small specialist, innovative, non-status bridging lenders. These lenders are taking advantage of current credit conditions to launch new niche products. This is probably quite the opposite of what you would expect, you probably thought it was dominated by the big banks with huge marketing budgets, this is simply not the case.
Short term loans are "high risk" finance products, with no income necessary, which is reflected both in price when compared to full status lending and the wide variance in actual lending criteria offered. To find a bridging lender who can meet your financial needs, requires careful consideration of the criteria used as the basis of any loan offer. For instance, in the case of a property purchase, will the loan be limited by purchase price or the open market value of the property. Where raising capital against property equity, will the maximum loan be determined by a valuation of the full market value, 180 day value or 90 day forced sale value. Failure to understand this criteria can mean that any loan offered is less than the capital required for your purpose. You may need to look elsewhere for alternatives and even pay for another valuation. Selecting a lender who only offers one price band on interest rates can prove to be an expensive mistake if another has stepped rates depending on the loan to value. Finally, not all lenders will finance all situations, preferring not to cover all bridging loan situations, such as property development or second charge loans for instance, making the whole search process much more difficult.
A mortgage broker will generally have access to software that will return current mortgage deals based on your criteria and specific requirements for example a fixed rate mortgage. This kind of software is simply not available in the specialist bridging finance market and typically you will find that residential mortgage brokers may know of one or two short term lenders if any. This limited knowledge can be very expensive for a prospective customer, but thinking positively, any quote offered can be used to test the marketplace for better terms and rates. With a quote in hand approaching a specialist broker with a large panel of lenders and knowledge of the bridging market-place can pay dividends in terms of speed and saving money!
For much more information on the topic of Short Term Bridging Loans in the UK visit our dedicated site. Specialist bridging loan is availanle from Eland Business Services Limited at http://www.bridgingfinanceoptions.com.
© Eland Business Services Limited,property, About the AuthorTags: mortgage broker, high risk, search process, lenders, fixed rate mortgage, maximum loan, short term loans, bridging loan, property equity, niche products, careful consideration, current mortgage, variance, finance market, bridging finance, finance sector, finance products