The bridging loan market can be tough to navigate without a sourcing system or long-term market experience. What tactics can brokers use to get a jump start on the market and the best deal for their clients?

Andrew Montlake, communications director at Coreco

If you thought the mainstream residential market has become a bit of a minefield nowadays, with rates and criteria seemingly changing on a weekly basis, the bridging loan sector can at times seem like an enigma wrapped in a riddle and hidden in a puzzle.

While it may seem straightforward to obtain a bridging loan, with many newspapers full of adverts for companies offering such products, the reality is that most clients end up paying way over the odds.

As with anything, there is no substitute for long-term experience in this market and, as I have found through my own excursions into this area, it is best left to the experts.

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A sourcing system would not solve the issue either, because there is so much more to consider with many of these deals than just the interest rate alone.

The good news is that help is on hand. Newer, broker-friendly lenders that provide a professional service full of clarity and transparency have helped to demystify the industry.

There are also master brokers and distributors that can be worth their weight in gold, helping to ensure that the client gets the very best product available.

Utilising such companies will undoubtedly save much phoning around, pouring over the latest criteria and perhaps a certain amount of spiel to your client, if you are not fully proficient in this market.

Engaging the services of experts is the quickest way to keep your client happy and build your own knowledge bank for the future.

Also answering in this week’s Market Watch are:

Gary Bailey, director at Blemain Group

Adam Tyler, chief executive of the National Association of Commercial Finance Brokers (NACFB)