Bridging lenders that charge front end processing fees as well as insisting valuation and legal fees are paid directly to them to do with as they please could be distorting the market and even earning out of these costs themselves.

The practice, although not illegal, makes it difficult for brokers – and borrowers – to correctly calculate the true cost of a bridging loan when comparing terms from different lenders.

Laurence Goodman, managing director of Bridgebank Capital, says: “Clearly accurate like for like comparisons need to be made when comparing costs between competitive lenders.

“At Bridgebank Capital we do not adopt this policy. The true cost of our bridging loan offer can always be directly compared and assessed.”

Bridgebank does not charge upfront administration costs for processing bridging loan applications and does not load fee charges for themselves onto third party disbursed costs, such as valuation fees or legal fees.

It also does not pass on fees to professional firms; all valuation and legal fees are paid directly by the applicant as appropriate.

Goddman adds: “Without hidden or loaded fees charged to borrowers, broker introducers can be confident in assessing accurate costs on their quotations. Brokers and borrowers can clearly identify accurately the true cost of a Bridgebank bridging loan.”