The role of bridging finance is becoming increasingly important and proving to be a valuable tool in the smart investors’ toolkit. However, the true value of short-term lending is unlocked through efficiency. In the world of specialist lending where opportunities come and go quickly, the ability to access quick, flexible capital can make or break a transaction.
To help brokers get deals agreed smoothly and significantly accelerate the time of completion, we have put together four key tips to get your cases across the line quicker.
Provide as much information as you can from the beginning
The single most effective thing a broker can do at the outset is provide as much detailed background about the deal and the client as possible. This includes a comprehensive disclosure of any non-standard, complex, or unusual details about the case.
When a lender is made fully aware of a borrower’s exact situation from day one, they can assess the case and risk metrics immediately. This complete visibility allows for a definitive decision on Loan-to-Value (LTV) limits and interest rates based on the information provided. Ultimately, this transparency eliminates unnecessary back-and-forth communication that causes unwanted delays, avoiding situations where hidden variables come out of the woodwork late in the legal process.
Pre-empt the underwriter questions
As a broker, being aware of what an underwriter will look for, and packaging those answers proactively, is one of the most effective ways to accelerate completion times.
A few key questions your underwriter will want answered includes:
- Use of funds: Is it clear what the borrower is using the funds for, and do you have the relevant supporting evidence ready?
- Onward purchase: If the funds are intended for an onward property acquisition, can you provide explicit details regarding the balance of funds required?
- Business purposes: If the borrower is a corporate entity, are the exact name and underlying operational nature of the business clearly documented?
- Exit strategy: Has it been sense-checked? Is it achievable within the loan term, and can evidence be provided?
Walking into a case with clear, considered answers to these points removes friction from the underwriting process and keeps the application moving in the right direction.
Choosing the right solicitor
The importance of instructing the right solicitor cannot be overstated. It remains one of the most effective ways to prevent friction and delays during the legal process. A solicitor who is familiar with bridging finance and is proactive in dealing with the nature of enquiries makes a substantial difference to how quickly a case completes.
Bridging finance is a highly specialised legal framework. When selecting a solicitor, be sure to pick one that is familiar with short-term finance workflows and is consistently confident and proactive in dealing with title and lending inquiries. This decision always makes a massive difference in getting a case completed quickly.
Look beyond the headline rate
When choosing a lender, it can be tempting to choose a provider based on headline rate alone. But a low rate offers little value if the lender can’t meet your deadline or isn’t equipped to handle the complexity of your client’s situation.
The best approach is to prioritise a lender with a strong reputation for reliability and speed. A competitive rate from a lender you can trust is far more valuable than a marginally cheaper option that creates problems down the line.
How MT Finance can help
Bridging finance doesn’t have to be stressful if you plan ahead and partner with clarity. At MT Finance, we specialise in delivering effortless service paired with market-leading speed.
If you have a complex or time-sensitive bridging case sitting on your desk right now, reach out to our expert team via enquiries@mt-finance.com. Let’s get your deal moving.
