Benefits of Bridging Loans
Bridging loans are specially designed as a short-term scheme, thus payments are not made over a long period as done by most other types of financial lenders.They are the cheapest and easiest alternative to finance your property purchase, development project, or whichever project that you are working on.It is possible to have the loan credited to your account within the shortest time possible after application.These loans are very convenient as lenders do not undertake credit checks as long as you are able to offer some of your possessions as a security of the funds borrowed.The information below will enable you to get a clearer understanding of the advantages of bridging loans.
It is evident that when a borrower applies for loans such as residential mortgages and business loans from regular loan lenders and banks, it takes quite some time before the loan can be processed, approved, and credited to the borrowers account.When having an emergency or when facing a situation that requires immediate financing and you are not in the position of paying up, these loans are not reliable as the processing takes quite a long time.The bridging loans are the best solution to receive reliable funds within a very short time.Borrowers are assured of obtaining the loan as quickly as possible once they have filled in the correct details, and the property selected to act as security is viable.
It is possible to use varying kinds of property as security for the applied bridging loan.This includes property such as flats, warehouse facilities, a house, offices, farms, development land, sports arenas, and even plots for building.Other assets that can be used as security for your loan include your leasehold and freehold property.In most cases, loan lending facilities only allow standard construction to stand in as security of the loan applied.Buildings that are constructed from materials such as wood, concrete, steel, and iron are considered to be in the category of non standard construction, also referred to as unusual construction.It is very difficult to use such property as a source of security to a high percentage of mortgage lenders.However, bridging loans accept all kinds of property, both standard and unusual construction.
Bridging loans are simple to acquire, thus lessening the possibility of receiving a denial for your application.This is because their aim is to cater for the needs of their clients, ensuring that they are able to handle their ventures.The process is usually quite fast as they do not have to analyze the customers income and credit rating, as most of other lenders do.Once a customer provides a convenient source of security, the deal is closed.