What simple refinancing offers your borrowers
Authored by LendInvest
When it comes to refinancing onto the next stage of your clients’ project, it is often in everyone’s interests to remain with the existing lender.
Good lenders make transitions simple, using their in-built relationship with borrowers and brokers to simplify the process, cut down on paperwork due to familiarity with the deal and altogether make it run smoother.
The benefits to this approach are key over the life of a project, but in a competitive marketplace lenders need to be mindful they don’t take borrowers for granted and continue to offer them the best approach.
Paying back loyalty
One way lenders can support borrowers through refinancing is to waive fees that they’ve already paid on their first deal.
For example, when clients exit from a Refurbishment or Bridge-to-Let deal with us to our Buy-to-Let, there are no valuation or legal fees to pay, meaning clients aren’t being asked to pay multiple times for work that will often bring the same results.
Outside of the fees, you can reward loyalty and high-quality work with lower rates.
Our EPiC range offers lower rates for greener Buy-to-Let properties, but our EPiC Star products reward customers who use our bridging finance to increase EPC ratings with even lower rates.
Lenders always benefit from retained business when a client transitions with them, so it is important to recognise that and reward the customer for that opportunity, and not just take for granted that because you won one deal you shouldn’t have to win another.
Making it simple
From the client’s perspective, when they have just completed one step of their project and want to move forward to another, easing the stress of that journey is the best thing a lender can offer them.
This is why lenders have to be mindful of the whole project when they sign on for that first deal about what might be required in the future and have a plan in place to support that.
Simple things like retaining the same case manager, and underwriter throughout their project, and if they need to transition to another team ensuring they are equipped to explain your deal to the next person.
Reducing paperwork, so not asking for the same information twice for every ‘new deal’, or using technology like Open Banking, Digital ID or E Signatures to keep the process as paperfree as possible all help to make a stressful juncture in a project less so.
Built on trust
When a broker and client chooses a lender's services for the first part of their project, it is up to the lender to repay that trust throughout the process. Thinking creatively and with the broker and borrower in mind is how they can do that.
For adviser use only. Please note this content has been supplied by our lender partner and as such, is their responsibility. No party shall have any right of action against Legal & General in relation to the accuracy or completeness of the information in this article.