With a crowd of specialist bridging finance lenders existing and fierce competition between them, many lenders are looking for ways to distinguish themselves from their competitors.
One advantage of bridging loans is that an application can be approved within a short time. A loan can usually be approved in principle in about 30 minutes to an hour, but some lenders using advanced online loan application technology have cut down this to just two minutes. With brokers and borrowers having a large choice, lenders offering quick decisions see this as a way to increase business.
An April 2017 PropertyInvestorToday.co.uk article notes that low interest rates are another way to attract borrowers. Though lenders still need to make a profit on their bridging finance, many have cut interest rates to draw more business. Commercial bridging loans can be found from 1% per month interest and residential bridging rates start at 0.65%.
Fees are another area where borrowers can save. Bridging loans for property purchases need valuations and legal processes and these are normally charged for. Some lenders are offering free valuation services. The borrower normally pays both the lender and the borrower’s legal fees, but some lenders are now waiving their own legal fees. These free offers are usually available for loans of £500,0000 or less.
A bridging loan broker has knowledge of a wide range of bridging loans and can find the most competitive deal for people needing short-term flexible bridging loans.