Where deals get nervous.
The middle of a finance deal is where the anxiety lives. Kam on why three parties hold the keys to a smooth completion.
Kam, our Lending Manager, on the middle of a finance deal, where the anxiety lives, and why three parties hold the keys to a smooth completion.
For someone who hasn't done this before, the worst bit of a finance application isn't the start or the end. It's the middle. Once the deal has been agreed in principle and the lender is digging into the detail, everything goes quiet. Then come the document requests, the follow-up questions, the underwriting silence. That's where nerves kick in, usually for borrowers who think no news means bad news, when it almost always doesn't.
The middle-to-late stages are where good brokers earn their fee. The clients who get through smoothly are the ones who were prepared for this phase from the start. They know that extra documentation will be requested. They know underwriters will ask questions that feel intrusive but aren't personal. They know there'll be days where the honest answer to “what's happening?” is “we're waiting”, and they're comfortable with that because it was explained at the outset. That's almost entirely down to communication. No major update is still an update. A two-line message keeps a client steady; silence makes them anxious.
Smooth deals require transparency, preparation and clear communication from everyone involved, and painful deals fail on at least one of the three. Borrowers cause friction when they hold back key information at the start; what comes out later changes the lender's appetite. Brokers cause friction when they submit incomplete or unclear files and have to fix things on the fly. Lenders cause friction when expectations shift midway through the deal or the goalposts move from the initial conversation. Any one of those will slow a deal. All three together will kill it. The work of a good broker is preventing as many of those moments as possible, across bridging and development finance, auction finance and buy-to-let alike.
The clients we look after don't usually remember the underwriting timeline. They remember how they felt during it. Calm and informed, or stressed and in the dark. Which one of those they get says everything about how the broker has handled the middle.
“Clients remember how supported and informed they felt during the process as well as the outcome. Some days there's no major update, but you still keep the client informed. That's what builds trust.”