The Intermediary – August 2025 - Flipbook - Page 50
SPECIALIST FINANCE
Opinion
The value of
experience over
headline figures
I
t is entirely understandable
that borrowers, and in
turn brokers, tend to focus
on interest rates, day one
advances and maximum
leverage. These headline terms
provide an immediate way to compare
lenders and oen carry significant
weight in the client’s decision.
While such figures are obviously
important, they offer only a partial
view. They tell lile about whether a
case is likely to complete, or whether
the borrower’s plans can be achieved
within the proposed structure.
The assumption that sharper terms
lead to beer outcomes remains
common, but in many cases, it
conceals important questions around
process, clarity and consistency.
Conditions have shifted
Although 2025 has continued to
see growth in the bridging sector,
confidence across the wider lending
environment remains subdued.
According to the Finance & Leasing
Association (FLA), new consumer
finance business rose by just 1% in
April, while mortgage lending has
failed to hit the levels that many were
expecting. This indicates a market that
is recovering, but doing so cautiously.
Against this backdrop, the pressure
on brokers has not lessened. Clients
continue to seek favourable terms,
oen with an expectation of speed and
certainty. Yet the risk of deals falling
through remains persistent. In such
an environment, the ability to deliver,
rather than simply promise, becomes
more significant.
A disconnect
It is worth noting that a lender’s
terms, even when aractive, do not
necessarily reflect their ability to
complete. There are many reasons
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The Intermediary | August 2025
a deal might fail to progress, from
unexpected criteria to communication
delays or inflexible legal processes.
These issues are not always visible in
the early stages of a transaction.
Where they do occur, they oen
stem from a mismatch between how a
deal is presented and what is required
to make it work in practice.
This is not always due to
inexperience or oversight. More oen,
it reflects a market in which speed is
prioritised over precision, and where
a favourable headline becomes the
primary focus of decision-making.
Lenders with longer track
records and extensive experience
tend to approach cases differently,
particularly in bridging. Rather than
leading with a figure, they begin by
understanding the requirements and
the structure. They ask the necessary
questions early on, and are able to
provide a clear indication of whether a
deal will proceed – and that the terms
provided are deliverable.
This does not guarantee completion.
But it reduces the likelihood of delays,
sudden retractions or revisions, and
client frustration. In many instances,
it is this early-stage realism that allows
a deal to move forward smoothly.
Clarity from the outset also
improves communication between
lender and broker and helps ensure
that all parties are aligned.
There is growing recognition among
brokers that scaergun sourcing is
not without its limitations. Sending a
deal to multiple lenders in pursuit of
the best terms can sometimes result
in beer rates. Yet it also increases
the risk of miscommunication,
conflicting feedback and missed
deadlines. In contrast, brokers who
choose to work more closely with a
smaller number of lenders on a ‘horses
for courses’ basis oen report beer
GAVIN DIAMOND
is CEO at Inspired Lending
outcomes. These relationships tend
to be built on mutual understanding
of how cases are handled, what risks
are acceptable, and how to structure
terms that are both competitive
and workable.
This is not about loyalty for its
own sake. It reflects a more strategic
approach to case placement. One that
values consistency, delivery and longterm performance.
Timely opportunity
The middle of the year oen brings
a natural pause in market activity.
It may therefore provide a useful
moment to reflect on how lending
decisions are made. For brokers, this
includes reviewing which lenders are
consistently delivering, and which
approaches are proving most effective
in managing client expectations.
It is also a chance to consider what is
being prioritised. If success continues
to be measured primarily in terms of
headline rate, rather than outcome,
there is a risk that more deals will
fall away late in the process. In a
cautious market, the margin for such
disruption is narrow.
While rates, fees and leverage will
always play a role in client decisionmaking, they do not capture the full
picture. Experience, by contrast,
tends to be less visible, but no less
valuable. It is reflected in how issues
are anticipated, how information is
communicated, and how cases are
guided to conclusion.
In many respects, it is this
experience that determines whether
the deal that looks best on paper is also
the one that completes. ●
