Bridging finance in the United Kingdom has experienced a surge in popularity over the past few years. Turned to by businesses and private borrowers alike as an accessible alternative to traditional loan products, bridging loans are ideal when time is a pressing factor.
But despite the growing popularity of bridging loans, the vast majority of major banks and lenders still don’t offer these kinds of facilities. In fact, fast-access short-term loans are something of a rarity among mainstream lenders.
Hence, it can be difficult to know where to start if you’re interested in applying for a bridging loan for any purpose. So with this in mind, what follows is a brief overview of the options available, along with which avenues to prioritise if looking to get the best deal.
High Street Lenders
The vast majority of High Street lenders aren’t interested in this kind of finance. Hence, you’re unlikely to have much luck walking into a branch of a major bank and requesting a bridging loan. Some of the more dynamic newcomers to the High Street are more flexible than the usual household names, but they’re still relatively thin on the ground.
In any case, it’s rare to find any High Street lender offering bridging loans with the lowest rates of interest and the most competitive borrowing costs. Hence, it pays to set your sights elsewhere.
Beyond the High Street
This means looking beyond the High Street, in order to see what’s on offer courtesy of the market’s more dynamic specialist lenders. Typically operating online, sometimes accompanied by one or two local offices, specialist lenders are exactly as their name suggests. Operating independently, specialist lenders may specialise exclusively in bridging finance, or offer a variety of products or services that differ from those of conventional lenders.
This is definitely the market to target when applying for a bridging loan, but this doesn’t necessarily mean it’s advisable to approach any given bridging lender directly.
Market Comparison Services
Instead, you’ll want to conduct a complete market comparison of the available options. With dozens of specialist lenders offering a combined portfolio of hundreds of borrowing products, there’s much to be taken into account before making your final decision. A good place to start can be entering your requirements into an online bridging loan calculator, in order to gauge the costs and general terms if you decide to go ahead.
Comparing deals manually is one thing, but there’s one more option to consider that guarantees a superior deal.
Working with a specialist broker means eliminating all legwork and guesswork from the equation. You specify your requirements, they compare deals from an extensive panel of specialist lenders and return only the best deals on the bridging finance you need. Just as long as the broker is 100% independent, they can provide an invaluable whole-of-market comparison service on your behalf.
Whether you’re borrowing for business purposes or as a private applicant, specialist brokerage is the only way to ensure you get the best possible deal.