Lenders are currently under threat from an outbreak of brokers posing as principal finance providers, causing borrowers confusion and wasted time….
<
div>Lenders are currently under threat from an outbreak of brokers posing as principal finance providers, causing borrowers confusion and wasted time…
Short-term lenders and their potential borrowers are being targeted by brokers either masquerading as lenders or making extravagant promises which they can never fulfil, causing borrowers confusion and delay, which can lead into pricier problems, according to Alternative Bridging Corporation Limited (Alternative Bridging).
These ‘blenders’ use exaggerated claims in their advertising supported by Search Engine Optimisation to attract potential borrowers looking for a certain lender, pulling them unwittingly into the ‘blender’s’ website. Once there, borrowers are besieged with false promises and offers such as: ‘completions within 48 hours’, ‘immediate decisions’ and ‘access to exclusive products’.
Commenting on the ‘blenders’, Brian Rubins, Managing Director of Alternative Bridging Corporation Limited, said: “We have a market in disarray and customers in real danger of losing opportunities or worse because the loans they are negotiating are delayed or illusory and become far more expensive than was at first promised.”
Brian added: “Of course there are both lenders and brokers who are honest and transparent. We urge borrowers and their brokers to use caution when looking for a lender – make sure you are really dealing with a lender and always ask questions if a deal looks too good to be true. As the saying goes, it will be.”
Borrowers and brokers have now been urged to ask questions when presented with an enticingly low interest rate. Questions you may need to ask are whether rates have come from a lender or a broker in lender’s clothing. Is this low rate for any LTV or only up to 50 per cent? Is the interest rate being subsidised by a large up-front fee and then subject to significant increase after three or six months? Always make sure you know exactly who you are dealing with, otherwise brokers and clients could be left with limited opportunities.
Leave a comment