It really does pay to use a broker

Posted on April 1st, by editor in Caring Times. No Comments

|By Mark Widdows, senior partner at Global Business Finance| I have just put the phone down after speaking with a care home owner about a new venture and expansion. What they did not remember was that we spoke nearly five years ago when they wanted to refinance. At that time the client was so concerned about every fee that they missed the whole point of using a broker. It was because we wanted 0.75 per cent of the advance to transact the business that the client decided to take our advice, and then negotiate their own deal. Having reviewed their new requirements I enquired as to the current lender and terms. Well, blow me if the client hadn¹t gone to the same bank as I was going to introduce them to, those five years ago. Where I had one interest rate in mind the client, by using the direct approach, had negotiated a rate that was 0.75 per cent higher than mine. The net effect has been that the client has paid more than £10,000 in additional interest, over and above our fee of £2,500. Worse still, they are

Comments are closed.

Latest blog posts

Shuffling to some purpose – or just fancy footwork?

By guest blogger JEF SMITH

Spare a thought if you will for the hard pressed people who have to update government information. Well into 2018, for...

Life support for the NHS

By Caring Times editor GEOFF HODGSON

To outline a comprehensive remedy for the ongoing and worsening woes of the beleaguered NHS would take a little more...

A flight of festive fancy

By Caring Times editor GEOFF HODGSON

Christmas Past: It’s cold outside but inside the care home the star atop the tree beams its rays of hope...