Brian Rubins, director of Alternative (pictured above), argued that the short-term loans sector was rife with misleading assurances which cannot be fulfilled, such as “loans up to 90% LTV” and “interest from 0.5% per month”.
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“Overall, our industry is growing and maturing, and so must each of the lenders and brokers who operate in it,” said Brian.
“We all want to attract as many new enquiries as we can and using ‘from’ and ‘up to’ may help to make the phone ring or the computer ping but, in fact, building lasting relationships is far better achieved when founded on truth and facts.”
Brian’s comments follow a raft of rate changes in the bridging space, which has seen multiple lenders cutting interest rates.
“For brokers who can be relied upon, it is far better for lenders to give them access to detailed underwriting criteria so that they are fully aware of terms, preferences and red lines,” added Brian.
“It saves the broker time and rather than relying on ‘from’ and ‘up to’ and being let down, he can say to his client on day one: ‘These are the terms and you will get them, maybe a little better but definitely no worse.’”
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