What bridging brokers want: certainty


Low rates and low fees are only part of the mix for brokers looking for a bridging loan for clients. According to brokers themselves, the really important things are certainty, speed and transparency. Bridging lender Fincorp invited 25 commercial and bridging brokers to a day at Lord’s cricket ground just down the road from the lender’s home turf in London’s St John’s Wood in late September.

Speaking at the event Philip Douglas, managing director of P Douglas Finance, said: “When considering which bridging lender to use, we’re looking for certainty that they complete the transaction, speed of response, and certainty that it’s the best deal we can get in the time frame that we have.”

His views were echoed by Curtis Goring, managing director of The Aftersales Network, who also attended the event. He said: “I’m looking for consistency, transparency, being able to deliver on the promises they make to me and to my client.”

The event, hosted by Fincorp directors on 17 September, was an opportunity to get feedback from brokers on the bridging market, client needs and to establish what intermediaries value from the lenders they deal with. Matthew Anderson, director at Fincorp, said: “We are always making that point that being clear and simple about the way we do deals is important.

“It was interesting to hear from intermediaries that they value that too, because we don’t just understand clarity and simplicity to mean uncomplicated about the finance structuring of a deal. It’s also about being honest with brokers when deals are or are not going to get done. We know how important it is that they maintain credibility with their clients – being able to offer clients that certainty is the lifeblood of their businesses.”

Roshan Doostdar, director of Vision Finance, said: “We work with many bridging lenders and they’re all good for different reasons. But there are so many reasons a deal can fall over; you literally can’t make them up. One example really springs to mind: we were working with one of the leading lenders in the market who are honest about the fact they are looking for the near prime customer. Everything was going seemingly well until the lender realised there was a £5,000 restriction registered with the Land Registry on a £600,000 property, and they wouldn’t do the deal. Fincorp agreed to do the deal based on the fact it was only a £5,000 restriction, at a 50% loan to value - they had loads of head room.” 

Anderson added: “No two lenders will have exactly the same appetite for a deal – we are all trying to build loan books that suit our investors’ risk appetites, and these vary. The thing that we all have in common though is that we deal with brokers, and nothing is more debilitating for a broker than having a deal fall through at the last minute. That’s why we have our directors look at each deal when it comes in and make a decision – giving advisers that confidence they aren’t going to let their clients down is as important to us as it is to them.”

Brokers attending the Lord’s event with Fincorp were treated to a tour of the grounds including the Pavilion Long Room, players’ dressing rooms and the museum before being asked to share their views on the market.