By James Bloom, Divisional Director at Alternative Bridging Corporation
In recent weeks, questions have been raised in the trade press if now is the time for brokers to review their lending partners. We believe it is.
The COVID-19 crisis has revealed a number of new issues for lenders to deal with, as their borrowers face lockdown, rent arrears, extended void periods and have met difficulties securing exit routes. As a result, lenders have needed to adapt their policies and processes to manage otherwise defaulting loans. At ALTERNATIVE Bridging we have finalised sensible, revised arrangements with many of our borrowers.
Brokers find themselves in the middle of these problems on behalf of their clients and so, now more than ever before, they need to work closely with a responsive lender to identify effective solutions. We are that lender for all types of bridging loans and development finance.
At the beginning of April, Ernst & Young (EY) published its annual UK Bridging Market Study. Findings from the research are timely in the current environment, especially when it comes to how brokers should choose a bridging lender. More than half of the respondents to the survey cited the reputation of the lender as a very important or important consideration, which increased from 37% of respondents who reported this same option as the most important last year.
Respondents also identified other key considerations, such as certainty of funds, ability to deliver and being able to follow through on promises, as important factors influencing the choice of lender. This research confirms that brokers value certainty of funding, speed and quality service and transparency over low pricing. At ALTERNATIVE Bridging, our broker partners enjoy both.
Experience, expertise and transparency are phrases which may be hackneyed, but these qualities make a significant difference to you and your clients when circumstances change. Because of COVID-19, many borrowers’ circumstances will deviate significantly from their plans, particularly in development finance, and when they do, our ability to engage with the client is open, honest, and offers experience and expertise that will avoid a catastrophe.
Successful broker/ lender relationship are built on long-term partnerships and this requires an open dialogue, trust and confidence. These are challenging times, but they are also the best times to learn who your friends are. Now is the time to start building an enduring relationship with us. These qualities are in our DNA.
Contact us now to form a successful partnership for all types of bridging loans and development finance that will continue beyond the next deal and far beyond the COVID-19 crisis.