Contrary to popular belief, value for money with bridging finance isn’t only about interest rates. Compare bridging loans from several major lenders and you’re likely to note important differences where overall borrowing costs are concerned.
This is why a bridging loan comparison should factor in more than interest rates alone. It’s also why borrowers are advised to take their time, consider all available options and enlist specialist independent support where available.
Finding the best deal on a bridging loan doesn’t have to be difficult. Rather than taking a haphazard approach to the application process, it’s simply a case of following a few expert guidelines, as outlined below:
1. Work out exactly how much you need
First up, getting the best possible deal on a bridging loan means ensuring you don’t borrow more than you need to. Larger loans often mean lower interest rates and more competitive overall borrowing costs, but you could still end up out of pocket if you borrow too much. Carefully establish your requirements and work out how much you need, sticking to this figure as closely as possible during the application process.
2. Use an online loans calculator
Using an online bridging loan calculator is one of the best ways of getting a feel for what’s on offer. Simply enter the basic details of the loan you’re interested in, in order to see how much you can expect to pay by way of interest and overall borrowing costs. Experiment with shorter and longer loan terms to suit your requirements and see how the data you’re presented with suit your budget.
3. Carry out an online comparison
It can also be useful to enter the details of the bridging loan you need into an online loan comparison engine. This will return a variety of loan options from large and small lenders alike, giving you a good indication as to what’s on offer. After which, you can visit (or contact) any of the lenders you’re interested in working with, in order to discuss their bridging finance deals in more detail.
4. Consult with an independent broker
The preferred choice for most proactive borrowers is to take their query to an independent broker. Working with a broker can be beneficial in two ways – the first of which being the opportunity to compare the widest possible range of deals from an extensive network of specialist lenders. In addition, independent brokers can provide the honest and objective consultancy you need to make the right decision. When taking your business directly to any specific lender, you cannot always rely on the same level of objectivity.
5. Speak to an independent financial advisor
Last but not least, you could also book an appointment with an independent financial adviser. With no specific stake in the subsequent transaction (should it take place), an independent financial adviser can provide completely objective advice on the available options. They’ll help you decide whether or not bridging finance is the way to go, discuss the alternative options where relevant and help you make an informed decision. The services of IFAs are usually payable, though can open the door to invaluable information that could save you money long term.
The UK bridging finance market is growing all the time, both in terms of size and complexity. This is why it is important to be as strategic as possible when applying for a bridging loan. Whatever your requirements and budget, it’s highly likely you’ll benefit from independent support along the way.