All You Need to Know About Bridging Loans
The bridging loans stand out from other loans as they are mostly used to cater for investments that are short-term based.They happen to be the cheapest way of financing a development project, a property purchase, or whatever venture you want to carry out.It is possible to have the loan credited to your account within the shortest time possible after application.Once the lender is able to see that you have the property that can be used as security, they do not carry out background checks and credit checks as they are assured that you will be able to pay up the loan.The information below will enable you to get a clearer understanding of the advantages of bridging loans.
Majority of the banks and other financial institutions that offer loans to customers often take a significant amount of time to process and approve a loan proposal as the process is usually quite long.If you are dealing with an emergency or you urgently need some cash, you cannot depend on these kinds of loans as you will have to wait for quite some time.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.
It is possible to use varying kinds of property as security for the applied bridging loan.Belongings such as a house, a sports field, a flat, offices, pieces of land, and other similar properties can be used.Other assets that can be used as security for your loan include your leasehold and freehold property.Many of the regular loan lenders only give funds to people who have the property that is classified under standard construction.Non standard construction property includes structures and houses that are constructed from a certain category of materials such as steel, wood, iron and concrete.A large number of mortgage lenders do not consider such property as worthy to be security.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.The reason behind this is that their goal is to assist the people and ensure that customers are able to deal with their financial situations as fast as they can.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.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.