Does this phrase give you the comfort you need when looking for a bridging finance broker?
” we will search the whole of the market for you “
I’d expect your answer to be yes but do your homework first on the broker as this statement can’t be delivered.
Check they have Financial Conduct Authority (FCA )regulation. It should be at the bottom of their website and emails and it’s easy enough to check on the FCA register.☑
Most bridging finance isn’t regulated but the majority of lenders still require the regulation from the broker to accept business.
Recently we’ve been asked to refinance a bridging loan where the client is currently paying 1.25% per month. Ouch 😱
As well as entry fees for the loan there is an exit fee of one months interest. When I saw the rate I thought there was something particular unusual about the transaction or the circumstances. I couldn’t find anything and I’d have expected the costs to be 50% lower
The broker who had arranged the bridging loan for our new client is an unregulated broker who can place business with very few lenders, but the client was sucked in by their promise of searching the whole market for them. 😡
In reality their broker will only deal with a handful of lenders who usually charge much higher rates than the rest of the market.
There is no such thing as whole of market, as nobody has a relationship with every lender.
Finding a good bridging loan starts with a good broker who is regulated by the FCA.