Why an Independent Mortgage Broker is Worth it

That is where an independent mortgage broker really comes into their own. Here are five obvious reasons an independent mortgage broker is worth it:

1. Obtain Honest Mortgage Advice

One of the biggest advantages of using an independent mortgage broker is that they are completely independent institutions and will not have any vested interest in recommending the offerings of a particular lender or bank. Though the high street banks and building societies can only recommend their own products, no matter whether they are well suited to your situation or not.

An independent broker will compare a range of mortgage products from different lenders and recommend the most appropriate product for you according to your personal needs and circumstances rather than the other way around.

2. Secure Personal Advice from an Expert

Online comparison tools are able to compare interest rates and fees across all lender's products, but they cannot tell you how this kind of mortgage will work out for you financially in the long term.

A good mortgage broker will take the time to understand your individual requirements and be able to explain the benefits and drawbacks of each mortgage product in plain terms. You won't need to spend hours trawling through dozens of products; your broker will have already done this for you.

3. Gain Access to Mortgage Deals Not Marketed to the Public

Some products are only available to the public via mortgage brokers. Many lenders have specialist products that are not marketed directly to consumers, but are only accessible through an intermediary.

Using an independent mortgage broker will mean that you gain access to these exclusive broker-only products and all the wider choice of competition that comes with it. This can result in you being able to secure a more competitive mortgage rate than if you did it yourself.

4. Secure Support for Every Step of the Mortgage Process

Obtaining a mortgage is not simply a case of completing a form. There are documents to be assembled, affordability tests to be passed and various criteria to be met.

An independent mortgage broker will be there for you from your application to approval, helping you to gather the relevant documents, ask questions, liaise with the bank or building society on your behalf and check that everything arrives on time. They will smooth the smooth path to approval.

5. Get a Better Chance of Having Your Mortgage Approved

Getting a mortgage application is not something that you should take lightly. Getting a lot of rejections can seriously hurt your chances with future applications, especially if you’re applying to a lot of jobs in a short amount of time.

Your mortgage broker will review your credit profile and find the right lender for you. They will be able to find a mortgage product suitable for your financial situation and fill out a correct and complete application. This gives you the best chance of being approved the first time you apply.

Here is how a commercial mortgage broker can help you obtain finance for property development andBridging loans in London

In today's fast moving property market especially in the United Kingdom your chances of succeeding will depend a great deal on your ability to secure adequate finance; and for a number of reasons if your a investor dealing with a commercial mortgage broker in London will make this experience much less daunting. A commercial mortgage broker will help you source the right financial package from those specialist lenders who lend specifically to businesses; these loans may cover for a variety of property which might include shop and retail outlets, warehousing solutions, the commercial mortgage can cover any type of commercial property and any situation. By drawing from their vast experience within the banking industry these brokers have a wide portfolio of clients which include banks, private lenders and special funds making a broker much more likely to get you competitive funding.

If you are a property developer funding will be crucial, property development finance as it is now commonly called is a type of loan that will cover the entire project from buying land to construction stages right through to all finishing stages and until you eventually sell the property or refinance it onto conventional or non conventional mortgage product, unlike normal mortgages development funding is not about personal income but rather the potential end value of the development at all stages of the build or refurbishment project, a specialist broker can organize bespoke amounts which can range from £250k to as high as a few millions if needed.

When speed is of the essence time is the all important factor, and so a bridging loan can be raised for a variety of reasons; to bridge the gap between purchasing the existing property and selling the current home, to borrow money until long term mortgage plans are put in place, and of course commercial Bridging loans can be utilized when time is a serious limitation i.e. Purchasing property at auction and completion required relatively swiftly from exchange of contracts, for an urgent purchase these bridging loans in London can be completed in a matter of weeks, if not days, they can also assist with the cost of renovation and construction work.

When you want to take a proactive stance within the property market you have to make use of available specialist skills, thus allowing you to invest in a competitive market where flexibility and the correct funding are paramount to your success as property developers.

 

Property Development Finance: How to Prepare a Strong Funding Offer

Finding the finance needed to progress a property development project to site is often reliant on presenting the correct funding offer. Lenders will need to be convinced that the project is not only profitable, but that risks can be adequately managed.

A full overview of the property being developed – such as location, scale, number of units and likely end sales value – is also vital. This should be supported by a robust build cost – including, where appropriate, land acquisition, professional fees and contingency, which all point to accurate planning.

A convincing exit strategy helps in getting funding. There must be a clear and logical means by which the loan will be repaid, through sale or rental of, or through refinancing – in the form of a medium term loan, a high loan to value facility or perhaps an ultimate exit to long term loan.

Cash flow projections, projected profit margins and property bridging loan to cost figures need to be realistic and should be included – with supporting details such as comparables of previous sales and average rental values of similar properties if available.

The overall funding pack will be clearer and be accepted and actioned far more quickly when it includes well prepared planning documents, development schedules and a professional build cost – providing the funding offer of property development loans.

5 Reasons to Choose an Independent Mortgage Broker

 So it’s at this stage where an independent mortgage broker can really help you. Five obvious reasons why an independent mortgage broker is beneficial:

1. Receive Unbiased Mortgage Advice

Perhaps the greatest benefit of using an independent mortgage broker is that they are independent institutions and do not have vested interests in one specific lender. Top banks and building societies are only able to recommend their own products and services, whether they are suitable for your situation or not.

But an independent broker will compare mortgage products from a number of lenders. They will recommend the most appropriate mortgage for you according to your needs and circumstances rather than pushing a specific lender.

2. Get Personal Guidance from an Experienced Professional

Online comparison tools can compare interest rates and fees, but they can’t show you how the different kinds of mortgage will impact on your finances in the longer term.

A knowledgeable mortgage broker will take the time to find out what you need and will be able to explain the pro’s and con’s of each choice in simple layman’s terms. You won’t have to spend hours comparing dozens of products; your broker will have already narrowed it down for you.

3. Access Exclusive Mortgage Deals

Not all mortgage products are marketed directly to the consumer. Certain lenders provide specialist products through mortgage brokers only.

Working with an independent broker may mean that you have access to these broker-only products — a broader selection, which can help you get a more competitive mortgage rate than you could find by going it alone.

4. Expert Support Throughout the Mortgage Process

Getting a mortgage is a more complex process than filling in a form. There will be documentation to collect together, affordability tests to clear and certain criteria to satisfy.

An independent mortgage broker is by your side through every step from completing your application to getting a mortgage. They assist you in organizing your documentation, ask and answer questions, communicate with the bank or building society on your behalf, and make sure everything is received on time. They help make the process run smoothly.

5. Improve Your Chances of Mortgage Approval

Each mortgage application is very important. If it is rejected there may be repercussions for future applications, especially if there are too many credit checks in a short space of time.

A mortgage broker takes your financial profile into account and then introduces you to a lender. They will find mortgage products suitable to your situation and send off a submission that is complete and accurate in order to make sure you get an answer of approval first time.

Open vs. Closed Bridging Loans UK | What’s The difference?

 Bridging Loan real estate The single biggest difference between an open or closed bridging loans UK is in your exit strategy. 

Although both are used for short term lending, open bridging loans don’t have a proven repayment strategy in place and only have a set time for repayment (which may be very broad in practice.) 

An example of this could be someone hoping to sell a house in order to repay their bridging loan, but haven’t got a firm date in mind or an already agreed buyer in mind. On the flip side, with closed bridging loans the exact way the loan will be repaid is determined from the beginning. The lender can clearly see a strategy for getting their money back, whether it is via the sale of property, inheritance etc.

5 Reasons to Choose an Independent Mortgage Broker

So it's at this stage where an independent mortgage broker can really help you. Five obvious reasons why an independent mortgage broker is beneficial:

1. Receive Unbiased Mortgage Advice

Perhaps the greatest benefit of using an independent mortgage broker is that they are independent institutions and do not have vested interests in one specific lender. Top banks and building societies are only able to recommend their own products and services, whether they are suitable for your situation or not.

But an independent broker will compare mortgage products from a number of lenders. They will recommend the most appropriate mortgage for you according to your needs and circumstances rather than pushing a specific lender.

2. Get Personal Guidance from an Experienced Professional

Online comparison tools can compare interest rates and fees, but they can't show you how the different kinds of mortgage will impact on your finances in the longer term.

A knowledgeable mortgage broker will take the time to find out what you need and will be able to explain the pro's and con's of each choice in simple layman's terms. You won't have to spend hours comparing dozens of products; your broker will have already narrowed it down for you.

3. Access Exclusive Mortgage Deals

Not all mortgage products are marketed directly to the consumer. Certain lenders provide specialist products through mortgage brokers only.

Working with an independent broker may mean that you have access to these broker-only products - a broader selection, which can help you get a more competitive mortgage rate than you could find by going it alone.

4. Expert Support Throughout the Mortgage Process

Getting a mortgage is a more complex process than filling in a form. There will be documentation to collect together, affordability tests to clear and certain criteria to satisfy.

An independent mortgage broker is by your side through every step from completing your application to getting a mortgage. They assist you in organizing your documentation, ask and answer questions, communicate with the bank or building society on your behalf, and make sure everything is received on time. They help make the process run smoothly.

5. Improve Your Chances of Mortgage Approval

Each mortgage application is very important. If it is rejected there may be repercussions for future applications, especially if there are too many credit checks in a short space of time.

A mortgage broker takes your financial profile into account and then introduces you to a lender. They will find mortgage products suitable to your situation and send off a submission that is complete and accurate in order to make sure you get an answer of approval first time.

Open vs Closed Bridging | Understanding the Risk Difference

Every bridging loan in London is unique, and not all bridging loans are expensive or risky. An important factor is knowing the difference between the two types of bridging finance, open or close bridge, which may mean not all bridge loans are suitable for your circumstances.

Closed Bridging Finance

A closed bridging loan means that the Borrower has an existing, agreed exit strategy. For example, his vendor has agreed to settle on his existing property by way of an unconditional sale and purchase agreement, and that the settlement of that sale will occur after the date by which he must settle on a new property.

Here, the bridging facility is secured by a binding contract of sale with an agreed-upon date of repayment. Since there exists a tangible route of repayment, closed bridging finance is often deemed to be less risky.

Lenders, though, will still consider a range of issues before agreeing to a closed bridge. These can include the strength of the purchaser, whether the purchaser is an individual or a company, purchase price, deposit, GST issues, and contractual provisions that may affect the likelihood of the settlement occurring. All of these will impact the strength of the exit strategy.

Open Bridging Finance

Open bridging finance can be used where a sale agreement hasn't yet been agreed when the funding is set up. If the buyer needs to settle on a new purchase although the sale agreement isn't yet, there is no fixed date for repayment.

Hence, open bridging involves a greater exposure to risk for both parties. In the absence of a secure source of revenue, the lenders are required to perform a wider scrutiny process in order to assess the truthfulness of the possible exit plan.

Even though a higher risk, open bridging can work well for the right type of deal if it's set up correctly. If you think about most property transactions, we can often miss out on opportunities if we 'sit and wait' for our existing property to sell. The deciding factor is not whether a bridge is open or closed, but whether the lender is happy from a security vantage point, market place, sale strategy, client profile and repayment planning perspective.

What Lenders Look For

When appraising an open bridge, the lenders should have assurance that the exit strategy is viable and will be achieved. This will involve an appraisal of the suggested sales process, exit timescales, available market demand and value of the property.

Lender will also want to ensure that the borrower has sensible expectations of sale price and is willing to sell under prevailing market conditions. Large difference between vendor expectations of selling prices and market conditions can extend the timescale and heighten the risk of bridged finance.

Choosing the Right Bridging Solution

Either open or closed bridging can be an effective, realisable facility if used in the right context. Closed bridging is considered the lower risk form as repayment is secured by the downside contractual sale. The open bridging has more uncertainty as the exit is not yet obtained but can be a very effective and successful approach if supported by high security, a proven sales approach and clear plan of repayment.

Silver Oak Capital provides on and off bridge financing to suit the needs of specific borrowers and transactions.