"Facilitating an efficient, transparent process can help brokers build long-term client relationships and secure repeat business. "
I very much doubt it could have escaped the attention of anyone involved in short-term lending that bridging deals have been taking frustratingly longer to get over the line this year. According to EY’s UK Bridging Market Report for 2024, 46% of survey respondents reported completion times of over 45 days, compared to 37% 21 months previously, emphasising how the issue is worsening.
These delays highlight the importance of establishing strong, efficient relationships within the bridging finance market between all parties — lender, broker, surveyor, and solicitor. For brokers, forming these partnerships can be the key to securing quick approvals and ensuring the whole process runs as smoothly as possible.
Brokers bring value beyond simply matching clients with the ‘right’ product. By ensuring clients provide accurate, timely information and work with reputable lenders and professionals, brokers contribute significantly to a successful, efficient outcome. Facilitating an efficient, transparent process can help brokers build long-term client relationships and secure repeat business. Clients who experience a smooth, well-managed bridging loan process are more likely to recommend the broker to others, resulting in valuable referrals and a growing client base.
Choosing the right lender
Selecting the right short-term lender is arguably the most crucial step in the bridging process. The choice of lender can vary significantly depending on the nature of the deal and the borrower’s requirements. Brokers value a lender who understands the end customer’s needs and can deliver speed, flexibility, and a facility fit for purpose. Indeed, 50% of respondents to the EY bridging report cited “speed of execution” as the most important consideration when choosing a short-term lender. In my experience, “speed” is typically a by-product of good knowledge and an efficient process. Brokers should seek lenders who value open communication - including access to decision-makers - as this transparency supports efficient processes and clearer alignment on client needs.
The first priority for everyone involved is to achieve a quick and positive decision. Brokers can greatly influence this outcome by providing correct information from the outset. The more detail brokers include upfront, the better lenders are positioned to evaluate the loan and decide if it aligns with their appetite.
For example, some brokers may be tempted to present a case as simpler than it is, omitting details to expedite approval; however, this approach often leads to delays and unexpected costs. Lenders expect and are prepared for the complexities of specialist lending, so being upfront about any issues from the outset is more productive.
That said, the ideal lender provides a streamlined, straightforward approach to applications, requesting only essential documentation rather than burdening the process with excessive paperwork. I wasn’t surprised that EY’s report showed 32% of brokers cited “level of information required by the lender” as the most important consideration when choosing a bridging lender, significantly up from the 2023 (27%) and 2022 (12%) survey results.
At Inspired Lending, we have used our experience to simplify our lending process by reducing documentation to only the essential documents as standard, only requesting additional information when necessary. More paperwork does not enhance a case with weak fundamentals; in fact, it can hinder a sound application by needlessly slowing progress.
Facing legal hurdles
The EY report revealed that 95% cited the “protracted legal process” as one of their top three factors causing operational delays. The choice of solicitor, therefore, can be critical. Some solicitors handling bridging finance transactions are not as familiar as they should be with the requirements of short-term loans. Often — perhaps counterintuitively — delays are caused by solicitors providing everything they think they need rather than what was requested, resulting in unnecessary back-and-forth.
Brokers should advise clients on the importance of choosing a solicitor experienced in bridging rather than one who only handles residential conveyancing. Dual representation, where suitable, can also often lead to faster outcomes.
Surveying the scene
Another concern is valuations, with EY reporting that “valuation contests/disputes” appeared as an issue for the first time, affecting 8% of respondents. Realistically, this occurs when a valuation is lower than the client expected, wanted, or needed (I can count on one hand the times during my 15+ years in bridging finance that a valuation has come in higher than anticipated!).
Typically, this is due to unrealistic expectations of the borrower initially. Here, the lender plays a key role, too. The best lenders perform an initial “sense check” and inform the broker or client of any concerns regarding value before instructing the valuation, avoiding unnecessary costs when the plan is unlikely to succeed.
Generally, lenders will have valuer panels to cover a wide geographic region and property types, often managed by panel managers to achieve the right outcome. For appropriate cases, lenders may also use desktop appraisals and AVMs to quickly verify value and expedite the process.
Avoidable delays are a reality of today’s bridging market, but they don’t have to be. By working closely with lenders who prioritise streamlined documentation, surveyors and solicitors who understand short-term finance, and clients who are proactive in providing information, brokers can ensure smoother, faster bridging transactions. These best practices can make a real difference, and clients will thank you for it.
