Advantages 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.The borrowing terms of bridging loans are supple and can be organized within a very short period.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.Read along and find out the many benefits 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.These loans cannot serve the purpose of handling an emergency.A bridging loan is the only solution for acquiring a serious loan within the shortest span of time.As long as you possess property that is worth the amount of cash you are borrowing, the funds can be transferred to your account within 48 hours or even within a shorter span.
As security for a bridging loan, any type of property can be used.Belongings such as a house, a sports field, a flat, offices, pieces of land, and other similar properties can be used.A bridging loan lender could also use leasehold and freehold property as your security for a loan.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.Bridging loans are therefore the best as they do not put into consideration the type of property to be used as security, as long as it is equivalent to the funds.
It is very unlikely for anyone to be denied a bridging loan, having the required security alone.This is because their aim is to cater for the needs of their clients, ensuring that they are able to handle their ventures.The reason as to why this process is usually quite fast is because they do not have to inquire about a clients financial statement, credit or their amount of monthly income.This is because their only interest is that the customer can provide reliable security in case they are unable, or fail to repay the loan within the given time.