How to choose the right bridging loan broker for you

With a 42% chance of losing out on a sale if there are two or more houses in a chain, it’s no surprise bridging loans, which are loans designed to help bridge the gap between funding needs, have grown in popularity, with a 16% rise from 2022 to 2023 alone.

If you’re thinking of joining the many businesses leveraging bridging loans, a broker may be able to help you wade through the many options and find the one most suited to you, but, how to find the best one?

Well, let’s start with asking “why?”.

Why should you use a bridging loan broker?

Bridging loan brokers bring years of industry expertise, which can help you distinguish between a good deal and a bad one. They also (usually!) have access to a very wide pool of lenders and can leverage pre-established relationships to help you find better initial offers. For example, in our case, Funding Options by Tide helps connect eligible borrowers to our network of over 120 lenders. This can result in borrowers connecting with a lender they may never have found on their own.

Now, that doesn’t mean we throw 120 offers at you and see which one sticks! A bridging loan broker is more about saving you time. We filter through the options for you, finding the ones that suit your needs most before providing you with a nice, well-presented list of options. This can save you hours of scrolling through search results and gathering initial quotes.

A broker can also provide personalised support, a helping hand during any stressful moments, and help when negotiating for a better rate – all of which can come in handy when you’re dealing with the kinds of numbers involved. For example, bridging loans for construction projects can reach into the hundreds of thousands.

How to choose the right one for you

• Number of lenders: With a broker, it’s advisable to look for one that has access to a wide range of lenders, that way they’re not funnelling everyone through to the same few lenders every time.

• Fees: Generally, it’s best to look for a broker that charges the lender, rather than you. They should also help you understand the fee structures.

• Transparency: Take a look through their online resources. A good broker provides valuable information to their potential clients, helping them get to grips with common lending terms and the bridging loan process.

• Personalisation: Brokers are there to help you. Their service should be personalised and they should provide one-to-one support throughout.

Five red flags to watch out for

• Guarantees: Brokers are generally forbidden from providing unrealistic guarantees in their marketing activities, eg “click here to get an unsecured bridging loan”. If your broker does this, it’s a red flag.  

• Sales tactics: Brokers are there to help, not sell! If your broker is pushing you towards one specific lender rather than giving you the space and time to make a decision yourself, this is a red flag.

• Regulation: Brokers need to conform to a few very specific regulations. Ask your broker of choice if they’re authorised and regulated. If they’re not, this is a huge red flag.

• No communication: Do they take a long time to reply to your emails? Is it months before you get a quote? While lenders can take a while to approve or reject loans, brokers should be on the ball when you submit a request. Bridging loans, by their nature, are fairly urgent matters, a broker should take that into account and communicate quickly.

• No online presence: This isn’t necessarily a red flag, but it can be. If a broker has no online presence, you have to consider why. If you notice it’s because they’re a small, family run business and they serve a fairly local area, that’s okay. But if not, think carefully before trusting them with your business.

Five bridging loan broker green flags

• Great reviews: Take some time to go through the reviews or case studies of your chosen broker. What do their customers have to say about them? How they’ve worked with others can give you a good indication of how they’ll work with you.

👉 Check out our customer stories here.

• Long-standing: A well established, long-standing brokerage may have better relationships with their lender network and more experience. If you’re looking for our track record, we’ve helped over 17,000 customers gain more than £800 million in business finance.

• Reputation: Reputation is everything in finance, after all, you’re trusting someone with your money, that’s no joke. While we’re on the subject, The Daily Telegraph once said we’re the “matchmaking website for small businesses & lenders.”

• Partners: A broker is only as good as their lenders. A strong partner network is a green flag.

👉 Take a look at our partner network here.  

• Intuition: Ultimately, you are your own best advocate. Look inward and see how you feel after speaking to a broker. Do you feel less or more confused? Do you now understand the process? Are you happy with the offers? Do you feel like you could find something better without their support? Listen to your intuition when making a decision like this.  

Find a bridging loan

We’re a bridging loan broker. We help connect eligible borrowers to our network of 120+ lenders offering up to £20M. Just click the link below and submit your information to find out if you’re eligible for our service.

Find a bridging loan.

Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.

It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.

Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.