Bridging loans are a type of short-term loans. These loans can be used to buy a second property to get time to sell the existing property, even if you have a mortgage. Essentially, it acts as a ‘bridge’, which allows property owners to cover the gap between selling and buying. You have to consider several aspects of this type of loan before you commit to it, such as the interest rate and conditions.
Since fast bridging loans are short term, it doesn’t take very long to get the loan approved. One of the most significant benefits of bridging loans is that they are quickly available for funding property-related projects. If you have a good credit history, then getting quick response on your loan application is possible. But, if your case is complicated, then you can expect a delay of a few days or in some cases a few weeks. Nonetheless, bridging finance is still fast compared to traditional loan options.
Getting bridging loans quickly
The bridging finance lenders tend to take pride in their quick services of providing a loan, and some might turn out to be speedier or faster than others. It should be kept in notice that the loan providers might reject your application on the basis of eligibility criteria. While it may seem like the right thing to do but approaching multiple loan providers is not a good idea. It can have a negative impact on your credit score.
If you want to get a bridging loan quickly, then you need to start by making an enquiry with different providers. This way, you can know which lender can offer you the best deal based on your circumstances and needs. You will not only save time but also this can prevent any black marks on your credit profile.
Bridging finance application process
Bridging finance is quick to arrange than mortgages as the lending decision depends on the exit strategy. If your plan for repaying the loan by the end of the agreed term is clearly evidenced, then the lender takes care of the significant underwriting.
The steps involved in the fast bridging loan process:
Pros and Cons of bridging loans
Bridging loans benefits
Bridging loans drawbacks
If you are looking to move to a new home and are waiting for your existing to sell than a bridging loan is perfect for such circumstances.