It is stated that, the role of the broker in bridging finance is challenging compared to the new commercial landscape that most individuals experience. The long-term finance market involves stricter underwriting criteria and lower loan to values. The under writing decision can be made faster upon more provision of details and a complete application by the customer. From the outset of the loan application, it is important to be clear regarding the exit route. If this is not made clear, than it poses great challenges for the customer and the brokerage company due to confusion and unclear important segments of the application.
In making, the application the most important or realistic points are timescales. Both the brokerage company and the customer need to have good judgment of timescales. The brokerage company ensures the timescale where the customer gets their funds and the time when the customer plans on returning the borrowed funds. CML applies the six month ownership rule which means that, during this period, the property is unavailable to be refinanced until it is legally owned for the mentioned period.
In contrary, the rule mentioned above is not applicable to the commercial lenders. Assessing if the client can make interest payments per month is up to the discretion of the company. In this case, the company has the responsibility to check in advance with the customer of what could be more comfortable or beneficial payment method they would like to select to process the interest payments.
The bridging company ensures that all the applicants/customers have experienced bridging solicitors who are able to handle bridging transactions. When the bridging solicitors are inexperienced, it causes great delays in completing the transactions. Bridging solicitors play a huge role in understanding the customers benefits from a bridging transaction. The property that needs to be secured on the bridging loan needs to be assessed and examined. The local comparable is recommended before suggesting the value for the security property. The bridging company and borrowers/customers need to be alert and find properties in the locality that give quotation on their values.
The investment property market needs to change every six months. It is stated that, in the couple of years, the investment property has evolved completely bringing changes in the new market system. The changes influence the investors to be on alert as they seek new opportunities of investing or funding in purchases that maximize their profits. This gives access to the broker companies to introduce bridging finance as products amongst the other range of products and provide possible solutions to the borrowers.
This article does not necessarily talk about bridging finance; it specifically discusses the role of the broker company and the borrower. In the end of the article, bridging finance is introduced as a product by the broker companies that positively reinforce this product to help the borrowers and solve their financial problems for a small period of time. If you need to know more about the bridging finance product, than the details are discussed more at www.bestbridgingloans.com. You can get more information and details about this product on the site.
by: Oliver Smith
Article source: http://www.articlesnatch.com/Article/Bridging-Finance---Role-Of-A-Broker-Company/3252162