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.Once you apply for the loan and have met the requirements necessary for you to be a qualified borrower, the funds are transferred to your account within a short span.This kind of loan is very convenient as credit and background checks are hardly carried out, owing to the fact that the borrower has the necessary security to match the number of funds requested.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.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.
Any kind of property can be used as a form of security for a bridging loan.This includes property such as flats, warehouse facilities, a house, offices, farms, development land, sports arenas, and even plots for building.A bridging loan lender could also use leasehold and freehold property as your security for a loan.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.Majority of mortgage lenders do not consider such assets as fit to act as security for a loan.However, bridging loans accept all kinds of property, both standard and unusual construction.
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 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.