With around 300 bridging lenders in the UK market, competition is fierce, and while this benefits brokers and borrowers by driving up standards and lowering costs, it also makes choosing the right lender more challenging. So, how can brokers identify the best lenders to work with?
1. Real-life recommendations: Word-of-mouth remains the gold standard. Speak to other brokers locally, online, or at events to learn which lenders they trust. First-hand experience from peers can provide invaluable insight into a lender’s reliability and service quality.
2. Membership of a professional body: Check if the lender is a member of a trade association like the Bridging & Development Lenders Association (BDLA), National Association of Commercial Finance Brokers (NACFB), or Financial Intermediary & Broker Association (FIBA). Membership signals a commitment to industry standards, ethical lending practices, and regulatory compliance.
3. Speed: A good lender should provide clear turnaround times and transparent processes to ensure a quick and reliable offer. Look for lenders that have dedicated teams or fast-track channels for straightforward cases. The ability to move quickly can make all the difference in time-sensitive transactions.
4. Service: Before submitting business, gauge a lender’s service by how quickly they respond, their expertise, and their willingness to assist. A lender that values brokers will take the time to discuss their products and processes. A strong service ethos should be evident from the first conversation.
5. Dedicated point of contact: Choose a lender that will give you a single point of contact to ensure efficiency, consistency, and better communication throughout the loan process. Having a knowledgeable contact who understands your client’s needs can significantly streamline the experience.
6. Bespoke underwriting: Complex cases require tailored solutions. The best lenders offer flexible underwriting that adapts to unique project requirements rather than a one-size-fits-all approach. A lender that takes the time to understand a project’s specifics is more likely to structure a deal that truly fits the borrower’s needs.
7. A strong focus on exit strategy: A lender should require a clear, realistic, and fully costed exit strategy before approving a loan. If a lender doesn’t scrutinise this, consider it a red flag. A well-defined exit plan is crucial to ensuring the loan can be repaid without unnecessary complications.
8. Transparent fees and charges: Some lenders still lack fee transparency. Look for those that are upfront about all costs, including charges for late redemption or early repayment. Hidden fees can quickly turn an attractive deal into an expensive one, so full disclosure is essential.
9. Effective innovation: While bridging finance is specialist by nature, innovation and agility can streamline processes. A lender investing in both people development and technological advancement is able to offer a perfect balance, equating to intelligent touch underwriting and a smooth service all round.
10. Specialist expertise: Experience matters. Established lenders with a solid track record across different economic cycles are more likely to handle unexpected challenges effectively. Having a team with deep industry knowledge ensures that borrowers receive the right guidance and solutions when issues arise.
In conclusion, selecting the right bridging lender is about more than just competitive rates — it’s about trust, service, and expertise. It is more than just that single transaction, it is about finding a partner. The right lender should be transparent, responsive, and knowledgeable, providing solutions that align with your client’s needs. By considering these key factors, you can find a lender that delivers reliability and long-term value for both you and your customers.
