Churchbridge Capital has abolished borrower broker fees on its core bridging loans and introduced cashback payments funded by a share of the commission it receives from lenders.
The specialist finance broker says the changes are intended to reduce the cost of arranging short-term property finance for investors, landlords, developers and business owners.
Under the new arrangement, borrowers will not pay Churchbridge an additional broker fee on qualifying bridging loans and will receive cashback when their loans complete.
The company works alongside its associated principal lender, WSP Capital Limited, and says it has access to hundreds of UK bridging lenders, allowing it to source finance for a range of property transactions.
BORROWER SAVES £11,000 ON £1.1 MILLION LOAN
Churchbridge highlighted a recent transaction in Bath in which a borrower secured a £1.1 million bridging loan after transferring the case from another broker.
According to the firm, the borrower avoided £11,000 in broker fees and received a further £1,100 in cashback. The loan completed within 12 days, with the lender accepting an existing property valuation rather than requiring a new report.
The borrower, identified as G.R., says: “I have just completed a bridging loan of £1.1m with Churchbridge Capital. They could not have been more helpful.
“I have completed my loan, saved £11,000 in fees and received £1,100 cashback by pulling it away from another broker. The loan was completed in 12 days and they used my existing valuation.”
The firm’s fee-free arrangement covers its core bridging products, including finance for auction purchases, refinancing, capital raising and time-sensitive property transactions.
CHALLENGE TO TRADITIONAL BROKER CHARGES
George Wall, managing director of Churchbridge Capital, says the decision reflected the company’s view that borrowers should not necessarily have to pay additional broker charges when arranging bridging finance.
He says: “For too long, borrowers have accepted expensive broker fees as an unavoidable part of arranging bridging finance. We don’t believe that should be the norm, and we’ve decided to do something about it.
“We’ve abolished our borrower broker fees on our core bridging loans. But we’ve gone further, sharing part of the commission we receive with the people who matter most — our borrowers.
“We believe people deserve competitive funding without unnecessary additional costs. It’s time borrowers got a fairer deal.”
Churchbridge is also targeting borrowers who have already obtained bridging finance quotations from other intermediaries, particularly where those quotations include substantial broker fees.
Wall added: “If you’ve been quoted a bridging loan with a broker fee, talk to us before you sign anything. You could be about to spend thousands of pounds unnecessarily.
“We want to earn your business by offering you a better deal, not by charging you more.”
Although Churchbridge has removed its own borrower broker fees from its core bridging loans, the announcement does not specify whether other borrowing costs, such as lender arrangement fees, legal fees or valuation charges, are affected by the changes.
