Clear and simple –how bridging loans should be
Complicated fees and extra charges hidden in the small print are what the industry has to move away from, says financial and property journalist Christine Toner
GUIDE TO BRIDGING FINANCE
S The
ince the credit crunch hit, the way in which the financial services sec- tor operates has changed. One of
the perceived biggest causes of the crash was, it seems, poor education and mis- understanding when it came to financial products.
Consumers were taking out mort-
gages and loans they couldn’t repay. They didn’t understand the issue of interest or fees and weren’t aware what was at stake. As a result, since the crisis unfolded
there have been further calls for greater transparency in the lending market.
Consumers want – and need – to know what they are paying and why. Hidden fees mean borrowers could find a product attractive on face value, without realising that once you throw the extra costs into the mix, it becomes unaffordable.
Keeping it simple in specialist sectors
In sectors like bridging, hidden fees can be an even bigger issue because many consumers – and indeed some brokers – do not fully understand the product in the first place. Adding a myriad of
guide to Bridging Finance 2012 21
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