Beware Bridging finance applicants SCAMS

Beware Bridging finance applicants SCAMS

Bridging finance applicants are always in a hurry and sometimes
desperate. They can be exploited.

You might imagine that extortionate fees and crippling interest
rates would be reward enough for those in the bridging finance
sector. Think again!
Unrealistic timescale
The most common device to lure the unwary is to promise a
completion date of just a few days. For the reasons we have already
seen this is rarely, if ever, possible. Having embarked on an
application, however, you are not going to start again elsewhere.
Time has already been lost. You will continue with the application.
The last-minute demand
This is perhaps the most brutal and cynical exercise of power over
the weak and vulnerable. But it does happen and you need to
guard against it. It works like this.
Your application proceeds without a problem and you are close to
completion. Suddenly you get a call from someone you had never
heard of. He has been asked to look over your application before
funds are released. He has a problem. He has noticed something
in the valuation report which seems unusual, or his solicitor tells
him there is some question mark over title. He will have to check
with his insurer. If they are not happy they may recommend an
additional fee to reflect the additional risk. Could you ring back in
20 minutes?
In reality there is no problem and no insurer to satisfy. If there
were a real problem of any sort, the application would not be
accepted at all. Simply charging a fee to cover a real risk would
make no commercial sense whatever, and bridging finance
companies take no risks at all with their security.
The reason you are asked to call back later is twofold: you need
time to get used to and accept the idea that you will have to pay
even more for the loan and, secondly, you will show your
desperation by ringing them! You are now ready for the slaughter
and offering your neck to the knife. What choice do you have?
You are certainly not going elsewhere at this stage.