Some see hiring a broker as superfluous. Perhaps even an unnecessary complication and therefore best avoided.
In reality, specialist finance brokers exist for one reason and one reason only:
To help the clients they work for access unbeatable deals.
If the services of experienced finance brokers were redundant, so too would be their role. In reality, brokers play an invaluable role in helping borrowers from all backgrounds secure competitive deals on all types of financial products.
In the bridging finance arena, in particular, the support of a good broker can be worth its weight in gold. In fact, it is generally inadvisable to apply for bridging finance for any purpose without broker support.
As for why broker involvement is considered essential, there are several advantages to applying for bridging finance via a broker.
Just a few of which are as follows:
- Access to exclusive deals and preferential rates. It is important to remember that some bridging loan providers offer their services exclusively by way of broker introductions. This means that the only way to gain access to the services they provide is to do so with the support of a broker. Comparing the market in its entirety holds the key to getting the best possible deal on a bridging loan. By applying with broker support, you gain access to exponentially more loans and providers than you otherwise would.
- Advice and input on the products available. The help and support provided by an experienced broker is offered on a 100% independent basis. This translates to the kind of impartial and objective advice you need to make important decisions. One of which is the exact type of funding solution you need, from the broad range of options available. Bridging finance is available in many shapes and sizes, with their own unique properties. Your broker will help you find the most appropriate product to suit your requirements and will support your application along the way.
- A helping hand with the negotiations. Once you have settled on a specific type of bridging loan and located a reputable provider, your broker will handle the negotiation process on your behalf. This is important, as almost all bridging finance terms, conditions, and borrowing costs are open to negotiation. You could save significant sums of money by negotiating a lower interest rate, or by minimising (or even eliminating) certain fees. Having established relationships with leading bridging loan providers over several years, brokers are in a much better position than borrowers to negotiate.
- Support for subprime loan applicants. Bridging finance is a uniquely flexible and accessible funding solution, available even to applicants with poor credit. But as some lenders have stricter eligibility requirements than others; ‘subprime’ applicants should only ever apply with the help and support of an experienced broker. Your broker will be able to point you in the direction of the UK’s best lenders for subprime products and will support your application accordingly. This could safeguard your credit history from further damage, caused by applying to mainstream lenders who automatically decline subprime applicants.
- Service is provided at no cost to the customer. Best of all, the full support package provided by an experienced broker is offered 100% free of charge to the customer. All costs are picked up by way of a commission, payable by the loan issuer. This means that irrespective of whether you choose to go ahead (or even heed the advice of your broker), you will not pay a penny for the services they provide. There is therefore nothing to lose at all by consulting with a broker, but perhaps so much to gain.