There are several instances when one will be considering using a bridging loan. The bridging loans also come with different benefits to the borrower. Unlike in the case of other loans where you will have an extended duration to repay the loan, bridging loans are short-term products. The loans are designed to suit you when you need to finance a property purchase or a development project. The bridging loans can be useful when one needs fast property purchase. If a property comes along at a bargain price, but your existing funds are tied up in other property investments, the bridging loans will be a good choice. You can also use a bridging loan when you place a winning bid at an auction. Since one needs 28 days to make full payment, after paying a same day deposit of 10% of the total amount, you will have ample time to arrange a bridging loan which will help you complete the purchase. Halifax bridging finance Bridging loans can also be useful when one wants to stop repossession or in the case where you need to pay tax liabilities. Here are some of the benefits of bridging loans.
One of the best reasons to consider the bridging finance loans is the fact the application and processing of the loans will be quick. In the case of traditional loans, one might need some weeks before they can have their loan approved. However, in the case of the bridging loans, one has a chance to get the cash that they require in a matter of days. One no longer have to wait for weeks, as is the case with conventional loans and mortgage, when they can get cash fast by choosing the bridging loans.
Another reason why you need to utilize bridging loans is the fact that the lending criteria are relaxed. In the case of traditional loans, one will not only need to provide proof of income, but you might also need to provide your current financial position before getting a loan. Most lenders also check the credit ratings before providing conventional loans. However, in the case of bridging loans, one is only required to provide an asset of sufficient value as the security for the loan. Unlike in the case of other types of loans where one will also need to state the intended use of the loan, most lenders providing bridging financing will give cash to use for absolutely any purpose. Be sure to watch this video at https://www.youtube.com/watch?v=TG5gIvCYPp8 for more facts about loans.
