Bridging loans are short term loans, designed to facilitate the citizens of the United Kingdom. An individual, a company or a business can avail of the facility of bridging loans to beat their current expenses and they can fulfil their obligations of long term financial needs. Fast bridging finance acts as a “bridge” when a borrower wants to purchase a new property by selling the old property, but the money received by selling the old property is not enough. Bridging loans facilitate the borrowers and support them in purchasing a new property.
Simple Bridging loan Criteria:
Bridging loan criteria make it unique from the rest of the loans and enable the borrower to avail of the financial assistance. Below mentioned criteria of bridging loan make it grow faster,
- Any person living in the United Kingdom, any company or business registered with the United Kingdom is eligible to apply for a loan.
- Bridging loan providers require property or assets as collateral to apply for a loan. Anyone who has a property to use as collateral property can avail of the facility of a bridging loan.
- An individual who is 18 years or over is eligible for the loan.
- Self-employed, employed and retired persons are eligible for the loan.
Distinctive features of the Bridging loan:
There are some distinctive features of the bridging loan which enhance the growth of bridging loan. Such features and characteristics are discussed below,
- Bridging loans are short term loans that consist of just three months to twenty fours months-long duration.
- These loans have flexible interest rates that vary from borrower to borrower.
- These loans have an easy method of application consisting of a few steps,
- In step one, the borrower fills out an application about the personal, professional and educational background.
- In step two the lender approaches the borrower and asks about the property as collateral.
- In step three, the lender evaluates the property of the borrower and analyses its worth and market value.
- In step four, the lender either approves the application or rejects it.
- In step five, if the application is approved funds are immediately transferred to the borrower.
- Bridging loans are less costly and have flexible lending criteria.
- They have an easy exit strategy.
- They have a reasonable rescheduling plan that varies from borrower to borrower.
- These loans provide a high opportunity for growth for both the lender and borrower.
- Bridging loan providers UK has the potential of receiving and approving multiple applications. When borrowers apply for a loan from banks, banks usually intend to approve only a few applications according to their budget, But bridging loan platforms have the capacity to facilitate the number of borrowers at the same time.
- There are fewer chances for bridging loans to get rejected, mostly applications for loans are approved by the lender.
- These loans can be availed for any legal activity.
People prefer Bridging Loans over other traditional loans:
- People nowadays are busy building their careers and they have less time to indulge themselves in long term hectic financial obligations. They want instant financial assistance and to get rid of financial obligations as soon as they can, this is the biggest reason for preferring bridging loans over other traditional loans.
- Apart from traditional loans where there is the same interest rate for all borrowers, in bridging loans interest rate varies from borrower to borrower depending on the amount of the loan and the worth of the property borrower put as collateral.
All borrowers prefer to get rid of loans as soon as they can so an easy exit strategy and flexible rescheduling method make bridging loan Comparison preferable for both lender and borrower.