There was a time around a decade ago where the vast majority of short-term financial products were considered inadvisable, perhaps even taboo by most conventional brokers. One example being the bridging loan, which as far as the average mortgage broker was concerned was the kind of offering to avoid at all costs.
Which isn’t entirely difficult to understand, given the way in which such products were at the time notorious for attaching ridiculous rates of interest, heavy fees and rather restrictive terms. Not only this, but many of the service providers offering these kinds of solutions weren’t exactly glowing in terms of reputation. As such, you would probably only find yourself making use of a bridging loan calculator as something of a last resort.
Fast forward to 2017 however and things really couldn’t be more different. These days, the industry as a whole has become relentlessly committed to not only improving overall customer service standards, but offering the kinds of intelligent and accessible financial solutions that are simply unavailable elsewhere. Rather than being thought of as something of a last resort, bridging loan providers are increasingly becoming the first port of call for a great many commercial and domestic borrowers alike.
Perhaps most importantly of all, it’s the way in which contemporary bridging loans have the potential to represent some of the most affordable financial solutions on the market that are making them stand out in the eyes of borrowers at all levels.
A spokesperson highlighted the record-low interest rates now available on short-term financial products.
“Competition has played a big part in the thriving bridging market we see today. Established lenders have built solid, dependable relationships with brokers, while others, including a number of challenger banks, have seen that success from the outside and moved into the space too,”
“An inevitable by-product of that competition has been to force down prices. Indeed, the rates available on short-term finance today are the lowest ever.”
The past couple of years have brought about the most enormous spike in bridging loans activity and interest among borrowers, which predominantly comes down to the fact that potential uses for these kinds of financial products have also expanded enormously. Though primarily associated with those involved in property development and renovation, a growing number of domestic borrowers are turning to bridging loans to assist with their own home renovation projects, relocation, small business establishment costs and so on.
Being able to pay back the money over a short period of time with the lowest possible interest rates is a prospect with universal appeal.
‘Competition has pushed lenders to be more innovative with their product design; to sculpt loans that precisely meet the needs of the borrower, rather than expect them to fall within a one-size-fits-all approach,’ Bridgingloans.co.uk.
‘That means building a broad, diverse product range.’
Suffice to say, the traditional face of the bridging loans industry has been confined to the history books, making way for an outright revolution in intelligent short-term financial solutions.