January 23, 2020 by Tiger Financial Ltd
Bridging loans can be looked on as short term lending to cover a specific short term financial need. They can be arranged usually at short notice and within a few days. Bridging loans require borrowers to put a security against the loan. Read the article to know more about bridging loans. Each one of us may face financial crisis in our life. Bridging Loans or "Bridge loans" are short term loans offered by lenders to cover the financial gap when buying one property before the existing one is sold. The word "bridge" indicates that the loan is designed to get you out of a temporary obstacle in times of urgent cash needs.
Bridging loans work as a bridge to fill in the cash gap. The benefit of taking a bridging loan is that they can be arranged usually at short notice and within a few days. A borrower can be in the form of an individual or corporation. Borrowers can use the loan for any personal or financial purpose. An entrepreneur can use the loan to provide cash for a property transaction until permanent financing can be arranged. Residential bridge loan can be really helpful in case of auction as it offers bridging facility to borrowers so that a bid on a property can be done with assurance.
Bridging loan is a secured loan. It requires a borrower to put a security against the loan. You can put a commercial property, semi-commercial property, development sites, auction properties, residential properties, retail shops or buy to let properties as a security against the loan.
Bridging loans are interest only loans. It implies that the borrower is required to pay only interest during the term of the loan and proceeds of the sale are used to repay the principal. Stay ready to pay a higher rate of interest on bridging loans. Past good relations with lenders can be really helpful to get a fast and best loan deal. Remember one thing use a bridging loan only if you are certain that you can repay it within 6 months. Though the loan is secured against collateral but the lender will make a thorough search regarding a borrower's credit history to minimize the risk involved in lending money. The Bridging Loan Scotland is smaller than the English market, with fewer lenders in the space. However, we can still access a full range of bridging loans and development finance, covering all asset classes, throughout Scotland, including the Islands.
There are various lenders in the finance market who can offer you a bridging loan. But, look for qualified UK commercial lenders who can offer you the best loan at favorable rate and terms. You can search for loan providers online too. Just browse through various websites, fill up a small online application form which is available on various lending websites and you are through with the job. Now, the lenders will look for the loan option which is best suited to your requirements. Collect loan quotes from various lenders which are available for free or nominal charges. Compare them to secure the best bridging loan.
Dream to own a home or to buy a new building for your business can be realized with a bridging loan. Finance market is huge with innumerous number of lenders. Shop around and look for the bridging loan option which can satisfy your expectations to the best.