The broker also said that many lenders are also taking too long to provide funds when time is often of the essence to customers.
John Waddicker, managing director of Positive Bridging Finance, said: “It’s unfortunate that investors are being wooed by very low interest rates which look attractive at the outset, but are unachievable for many.
“Whether that is due to the location or size of the property being purchased, the loan to value required or the credit profile of the applicant, we find most applicants do not qualify for the rates advertised by some lenders.
“Bridging loans are often required in a short space of time. Some lenders are more institutionalised with “tiers” of underwriters and this slows up the whole process.
“This could mean precious days are lost and there is potential that the deal could be lost to another buyer with a more proactive lender.”
Gross bridging in the final quarter of 2012 was £439m, 49% more than the equivalent period in 2011.
Positive said this has led to a flurry of new entrants and as such it has warned investors that it is essential to they pick the right lender or risk being out of pocket.
