The BridgeCrowd: The crowd funds all deals

The BridgeCrowd: The crowd funds all deals

The BridgeCrowd is a peer-to-peer platform dedicated exclusively to bridging loans and has an army of private P2P investors that invests in a wider variety of deals… .

The BridgeCrowd is a peer-to-peer platform dedicated exclusively to bridging loans and has an army of private P2P investors that invests in a wider variety of deals… 

The basic premise at the BridgeCrowd is that it will lend secured over any UK residential property (1st, 2nd or 3rd) provided that the loan to value is under 70% (and 60% for commercial).

The Security is the deal maker or breaker - all the rest are nuances

For the crowd, the key lending decision is based on the value of the security. If it is under the LTV threshold the loan will complete.  

The individual’s circumstances (credit, income, exit) only effect the rate, allowing them to have market-competing rates (0.85%) for borrowers with good credit, low LTV and a realistic exit. 

On the other hand, there is a strong appetite to fund at a higher rate (1.25%) for clients with adverse credit and 2nd charge high LTVs. This means that when introducing a case to the BridgeCrowd a borrower or broker can be sure of loan completion.

The One Stop Shop “Deal Saver"

The BridgeCrowd one-stop shop mentality is a deal saver for many brokers. Just consider the amount of situations where you have a client placed with a too low rate lender, only for it to fall down as something crops up in credit, or the exit that the borrower stated can not be evidenced to the satisfaction of the lender, or income can not be evidenced as originally thought. 

The deal is then seriously at risk. The broker has to quickly transfer a new application to a new lender and arrange for a new valuation at additional cost to the client. Not to mention, the deal may be dead by then as the borrower is likely to have missed the original purpose for the loan. This costs the broker time, reduces deal completions and loses customers. 

Not any more. The BridgeCrowd has managed to stop the need for deal losses as peer-to-peer investors offer brokers a keenly priced low rate bridging offer and should something crop up during the underwriting process, then the BridgeCrowd will still fund the deal, albeit at a marginally higher rate. 

Have you ever had one of these cases: 

  • The borrower states that they have clean credit, but when a credit report is run, the lender is not happy with it. The deal must then be sent to another lender. 

  • The borrower states that they have a realistic exit (such as a pension or re-finance), but the lender asks for evidence which the borrower can not provide. The deals are therefore at risk unless you find a new lender and pay for new valuations. 

  • The borrower has good income from dividend and rentals but can not provide it to the satisfaction of the lender. The deal falls down and the broker must find a new lender who will fund the loan.

If so, now may be the time to start introducing deals to the BridgeCrowd.

Broker Time Saver – and good riddance to application forms!

The BridgeCrowd also prioritises the broker’s work load and time spent on the deals. For example there is an option for the BridgeCrowd underwriters to deal directly with the client all the way to completion (should you require).  

Valuation and solicitors are instructed the same day as confirmation. They have panelled solicitors expert in bridging to assist your clients. They arrange 2nd charge consent and even more amazingly, there are no application forms and no signatures required throughout the process (until completion day).

Product range:

This peer-to-peer lender is taking a different approach to providing quick funding: real people that make quick pragmatic decisions who are not slaves to a funding line and are not a tick box lender. 

Different investors each with their own appetite fund deals with a willingness to write any deals on a residential provided that the LTV is sub 70% (commercial 60%).  

This means that when you introduce a case, it should complete with a competitive rate for every client.

Attributed to Louis Alexander at the BridgeCrowd 

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