Sonny Gosai

Bridging for business purposes

Sonny Gosai

senior sales development manager, Norton Broker Services

The short-term nature of bridging loans means that efficient service and speedy delivery are paramount. Getting back quickly to clients who have applied for a bridging loan is crucial in order to get them the finance they need as well as to ensure that the broker and lender involved secure the client’s business.

Yet there remains a distinct lack of broker access to bridging calculators on lender websites, which, in some cases, is delaying the speed at which applications are processed. This is particularly true of vanilla cases, in which clients need a bridging loan for standard costs such as renovating a property to refinance or sell it on or light refurbishment work such as installing a new bathroom or kitchen.

In simple cases like these, a bridging calculator that enables brokers to get an indication of the cost of the loan, including the gross loan amount needed to be paid at the end of the term as well as the rates and fees attached to the loan, is highly beneficial. It immediately gives brokers all the information they need to go back to their clients with a fully informed quote.

“Our online calculator, complemented by the Shawbrook portal, allows our brokers to submit a full application online and then receive credit-backed terms,” says Gavin Seaholme, head of bridging and second-charge mortgages at Shawbrook Bank. “As the bridging market evolves, so too does the need for technology to support it.”

Bridging calculators also allow brokers to get on with securing the deal rather than having to call their BDM for information and wait for an indicative quote before getting back to clients a few days later. There are benefits for lenders, too, as this allows BDMs to focus on more complex cases such as split titles, major refurbishment, and planned development cases that need some more bespoke pricing terms rather than a quick predicted quote using a simple calculator.

Sundeep Patel, director of sales at specialist lender Together, says, “We provide a quick-quote calculator for bridging loans that allows packagers to provide as many iterations of terms or mortgage illustrations that they like, which can drastically reduce the time taken to provide their client with an offer – helping us and our brokers secure more business.”

Currently, only a handful of lenders provide access to bridging calculators on their broker websites, but for standard vanilla cases, this should be the rule rather than the exception. In particular, smaller lenders that do not deal with as many non-vanilla cases would help brokers immensely by allowing them access to bridging calculators and pricing structures.

This would help to streamline the bridging loan application process for standard applications and help to drive up business volumes for brokers and lenders alike. It would also ensure that brokers are placing business with the right lender and not wasting time with those who cannot take on the business.

Another benefit of online calculators would be eliminating the need for constant chasing from brokers waiting to hear back from lenders on non-complex cases. Sometimes this can take up to 48 hours or more, and, from a business perspective, can lower service standards – and in the worst-case scenario, result in the loss of a client.

“Speed is still king in bridging, so giving a broker the ability to get almost instant decisions is a great selling point for them with their customers,” says Paul Delmonte, key account manager at UTB.

By providing greater access to bridging loan pricing calculators for standard applications, lenders can help brokers speed up the loan process for vanilla cases and therefore secure more business. This will leave more time for BDMs to work on the more complex cases that require bespoke pricing, and help to drive growth in bridging loan volumes.