Brokers need to put more processes in place to counter increased due diligence from bridging lenders in the wake of uncertainty following Brexit, Brian Rubins, managing director of Alternative Bridging Corporation, has claimed.
Rubins pointed to an extension to the period allowed for completion of auction purchase as a sign that some areas of the market were already switching on to the issues.
He said: “The auction houses recognised that a loosening of the rules was needed if buyers were to be confident to bid.
“However, even six weeks often is not long enough and bridging loans are often taken until permanent finance arrangements are completed.
“This use of bridging finance does not just apply to auction purchases but for all property finance transactions including refinance of existing loans.”
Rubins said one way of improving matters was by providing good information to the lender from the start and preparing an information package covering the full story behind a deal.
He added: “The lender will value your input and work closely with you to overcome hurdles and avoid delay.
“It is worth the effort, and in our experience at Alternative Bridging we have seen tangible benefits when all parties concerned are in regular communication with each other including drawing down new loans within just a few days.”