Communication between introducer and lender is one of the most important elements in getting a deal done efficiently and successfully. With this in mind, Gavin Diamond, Finance Director at market leading bridging lender, Cheval, gives us a weekly dose of insider knowledge to ensure you are doing all you can when submitting a deal in his top ten tips to presenting a bridging case...

Enquiry Stage

Tip 1:

Collect as much information as you can from the client or your introducing broker. The lender will make a decision to lend based on the information presented at the outset. If anything material changes during the underwriting of the deal, both the client and the broker may lose credibility in the eyes of the lender. This will almost certainly affect the funding of the current deal, as well as the introducer’s relationship with the lender with respect to future deals.

Tip 2:

Understand the deal including any pitfalls and consider whether the deal makes sense. If either the rationale for the deal doesn’t make sense or there is no viable exit strategy in place, a responsible bridging lender is unlikely to provide funding.

Tip 3:                                          

Be realistic about the amount of funding that your client is likely to receive so that you are able to manage their expectations. It is important to understand that a lender will not base a lending decision solely on Loan-to-Value. The ability of the borrower to repay the loan is of paramount importance.

Submission Stage

Tip 4: 

Provide all of the information the lender has asked for.  Lenders don’t usually ask for documentation they don’t need. This will ensure that the case progresses through to completion as quickly and smoothly as possible. If you are unable to supply the lender with a particular piece of information you should discuss it with the lender.  If the reason is plausible, most lenders will be flexible in their approach.

Tip 5:

Thoroughly check and read all of the documentation being submitted.  Don’t let the lender find something in the documentation you have missed.

Tip 6:

The application and supporting documentation tell a story.  If a question is likely to be generated in the underwriter’s head whilst they are looking at the deal, make sure that the supporting documentation answers the question. Wherever possible, pre-empt any likely questions by providing answers up front and covering off any information gaps at an early stage.

Tip 7:

Give the underwriter a chance to look at the case and consider the information provided before you start chasing for an update. Good lenders will provide timely responses to all information submitted.  Continuous calling for updates will only delay the underwriter and ultimately your update!

Tip 8:

Co-ordinate everything yourself. Check and double check with the client and their solicitor to ensure that everyone in the process is doing what they have said they are going to do when they said they are going to do it.

Tip 9:

Deal with every issue as it happens, no matter how small.  Sometimes you find it’s the smallest detail missed that delays the completion. The lender is unlikely to ignore something that they’ve asked you for.

Tip 10:

Make sure the borrower’s solicitors are aware of their obligations and respond to the lender’s solicitor in a timely fashion. The completion of a deal can often be held up by delays caused by the borrower’s solicitor. This is particularly the case where they are unfamiliar with bridging finance, and may in certain circumstances even advise their client not to take out the bridging loan because they don’t understand the transaction.