You are here: Home - Specialist Lending - Bridging -

We must raise broker standards together – LendInvest

by: Matthew Tooth, chief commercial officer at LendInvest
  • 19/06/2018
  • 0
We must raise broker standards together – LendInvest
There are few areas of the property finance market that are quite so reliant on quality brokers as the bridging market.


The truth is that most lenders are entirely or almost entirely reliant on brokers for distribution, and the borrowers who need this form of finance almost exclusively do so via a broker.

It’s easy to understand why. Borrowers who need short-term finance, by their very nature, are working to tight deadlines.

They need brokers who are on top of the market and know what lenders are looking for from applicants, and who are able to swiftly take in the details of a case and know precisely which lenders are most likely to be open to this business.


Problematic brokers

The vast majority of brokers operating in the market today provide that guidance and expertise. They take their role and responsibility seriously, they work diligently to ensure they understand the various product ranges and criteria employed by the many lenders now operating in the bridging market.

But there are some intermediaries who have essentially become introducers, simply passing on the client’s details to the lender and letting them take over.

That’s problematic; the client won’t receive the advice they need and deserve, while the broker is putting their reputation – and that of other brokers within the bridging sector – at risk.

As an industry, we want to see the highest standards of advice from brokers.

We want them to have all of the tools necessary so they can help their clients make informed choices, so that they can complete cases successfully and deliver a satisfying experience to the many borrowers who need bridging finance, whatever they might need that funding for.


Lenders’ responsibility

But we can’t expect brokers to do it all alone.

Lenders must do more, devote more time to going out and meeting advisers, helping them get to grips with the innovative products constantly being launched and outlining the specific sorts of cases where they can help clients, and where they can’t.

Lenders need to listen to their introducers concerns, find out the precise areas where they need help and then go the extra mile to provide them with it.

We are committed to educating property professionals; it’s why we launched the LendInvest Property Development Academy.

But just as educating prospective property developers is crucial to improving the number of homes built each year, so too is providing intermediaries with the help they need to deliver an even more comprehensive service to their clients.


Reputation improvement

That is why we extended the LendInvest Property Development Academy to hold a course specifically for brokers which we have run exclusively for NACFB members

Broker education is a subject that the NACFB takes extremely seriously, putting together huge amounts of resources to assist brokers in meeting their compliance needs on its portal.

And its apprentice scheme is encouraging the development of the next generation of bridging brokers.

But we can’t rest on our laurels. Raising broker standards requires action from all stakeholders in the bridging industry.

The reputation of bridging is a world away from where it was just a decade ago. Let’s continue that improvement by helping brokers deliver even higher standards of advice.


There are 0 Comment(s)

You may also be interested in


Keep up-to-date with all the breaking bridging and short-term lending news and analysis, from regulatory changes to product innovation and inside market knowledge. Take a look at our broker and lender case studies showing short-term finance in practice.


Find all the news, opinion and analysis for property finance brokers specialising in commercial and semi-commercial mortgages, alternative and development finance for commercial investments in residential projects.

Second charge

Stay up-to-date with the latest news, analysis and opinion on the secured loan market as it evolves into a mainstream finance option following European regulation on 21 March 2016.

Complex buy-to-let

Whether it’s a complicated asset or a complex customer, you’ll find out all the breaking buy-to-let news in this section. From limited companies to portfolio landlords, student lets to a House in Multiple Occupation, we’ve got all bases covered with our up-to-the-minute news, analysis and opinion.

Mortgage Solutions

Find all the breaking news, analysis and industry comment on Specialist Lending Solutions' sister site, Mortgage Solutions
Read previous post:
Steve Walker
Development finance needs to learn from second charge sector to grow – Walker

Last month saw the UK celebrate National Self Build Week. Did you know this? No? Well I doubt you’re alone.