"The bridging market is so competitive today, with so many lenders looking to carve out their own niches and specialisms, that it is often possible to find funding support for even the most complicated of cases."
We’ve seen a few of them of late, cases which on paper may be enough to bring you out in a cold sweat. One case which is about to complete concerns four properties - three of which had outstanding second-charge mortgages against them - with two different lenders, and a borrower who was a disqualified business owner. That’s not a straightforward day’s work by any definition.
Another recent case centred on the refinancing of an unencumbered semi-commercial property, alongside the purchase of a Bed & Breakfast property which was suffering from water damage. Not only did we succeed in helping the client, but the funds were arranged incredibly quickly - in just 10 days in fact.
Nimble lenders deserve praise
It might be easy to believe that cases which are so out of the ordinary, so different from the mainstream, would be impossible to place.
And while it’s true that not every lender will be comfortable taking them on, the reality is that the bridging market is so competitive today, with so many lenders looking to carve out their own niches and specialisms, that it is often possible to find funding support for even the most complicated of cases.
The lenders themselves deserve some praise here. The bridging specialists in particular have really taken on a positive approach, listening to feedback from brokers about the areas of the market that are underserved and revising their products and processes to better deliver the sorts of bridging finance that are really needed.
That’s incredibly positive, and another sign of the ever-improving maturity of the bridging sector itself.
They will, they won’t
However, it is important to recognise that there can be a wide variance between different lenders. While some will really get under the hood of a case, to get a feel for every element involved and consider it on its true merits, others are far more cautious and prefer to avoid anything slightly exotic.
Ultimately it comes down to how those lenders want to compete. Some focus their efforts on developing the most eye-catching rates around, but in practice actually concluding a case with them can be lengthy and frustrating. By contrast, other lenders - who may not have the lowest overall rates - instead go the extra mile to not only broaden the type of cases they will consider, but also devote their efforts towards delivering the funding quickly.
After all, so often with a bridging case time is of the essence. It’s not in anybody’s interest for bridging loans to take as long to get in place as a mainstream mortgage.
Picking the right partner
Understanding the different appetites and requirements of the various lenders active in the bridging market isn’t easy, particularly for those intermediaries who may only have a handful of bridging cases a year.
That’s why it makes so much sense to partner with specialists who handle these cases on a daily basis and have a much keener grasp of which lenders are most likely to have a more positive view of a specific case or client.
By working with the right bridging specialists, intermediaries can ensure their clients are treated professionally and are able to secure the funds they need swiftly and efficiently, even if their requirements are a little out of the ordinary.
