Knowing More about Bridge loans and its Advantages

Bridge loans are a short-term financial solution which allows an individual or a firm to release capital from an existing property until they can secure a long-term financing option.

Bridging loans are divided into two categories 1) Closed bridge loans and 2) Open Bridge loans

1)      Closed Bridge loans

In the closed bridge loan, the mortgagor has a clear repayment plan or strategy in place, such as the sale of the loan security or long-term finance.

2)      Open Bridge loans

On the other hand, the open bridge loans are used by borrowers who are not sure about when their predictable future finance will become accessible.

Above mentioned both the finances can be used to bridge the financial gap between the sale of your existing property and purchasing the new one at a low rate of interest. A bridging loan can be used to assist a person to be in a position to finish a property purchase ahead of them selling their current property. Simply by opting Bridge loans, the majority of the time you will receive the immediate cash flow on the same day itself.

The bridge loan would be the great choice when you discover that you do have bad credit score, however, having bad credit score also still it is possible to gain financially from your lender for your commercial and residential requirements. Looking for best bridge loan lender in the UK region, then choose the Bridge Direct as your first choice. Here they process any loan request, even when the borrower has poor credit also. You can avail the gap finance immediately simply by calling Bridge Direct team immediately.

Bridge Loans Explained

A commercial bridge mortgage is offered for individuals who require to get money quickly. This advance was initially offered to provide an approach to obtain property or business pending the deal of additional property. This specific form of advance is regarded as a short-term credit. The majority were made to be repaid within approximately 6 months.

Bridging Loans Finance

This type of advance is offered immediately, simply because it utilizes your present property and enterprise as collateral. The amount of these types of credits may vary considerably, however, usually might be up to 85% of the worth of the property or business. This sort of advance will not make use of the credit rating or additional factors to allow the loan. Since it utilizes your property, home or business as security, they could be repossessed when the money borrowed is not paid on time or properly.

The terms of the advancement are mostly a little greater rate of interest in addition to administrative fees. Commercial bridge loans are available for UK citizens. The capability to get the progress as well as the volume of the credit will depend on the worth of the property which is regarded. This may include the business property which is remaining bought or offered.

This kind of advance is now more popular it is easily available via many finance companies. The money might normally be guaranteed within a week of application, thereby making it an ideal choice for fast deals. We create an online application accessible to possible borrowers, creating the application procedure very fast as well as simple and easy.

While the quantity of the financial increases, so does the time period that the credit will be protected. In most cases, a new estimate will likely be required. When it comes to a business, economic records really need to be offered to approve. Ensure that you are able to pay back the money on time.

Keep in mind the commercial bridge mortgages cater to people who have funds, short-term to finalize a transaction. To make sure punctual payback it is always advisable to take the necessary amount as bridging finance.

Advantages of Bridge loans

Bridging finance is short-term time loan and it can be used by a borrower at the time of buying a new asset or making use of commercial business requirements. Over the years, it helped most of the citizens of the UK while buying a new property without selling the old property. The Bridging Loan will offer the funding up to 80% value of equity held on the existing property.

Below are the advantages of Bridging finance: 

Poor Credit History Don’t Worry

Most of the banks will not process any loan request when the borrower has any poor credit history and bad rating previously. But as an experienced lender like Bridge Direct will process any loan request on the same day, even when the borrower has a poor credit history also previously. The team of the Bridge Direct is direct lenders and they will analyze requirement completely and offers an instant decision. They don’t care about when the borrower has any poor credit history previously.

Repayment Options are flexible and simple

The repayment options of Bridge finance are simple and flexible when comparing to bank mortgages. With the conventional finance, you will be expected to show the bank that your income or salary will be sufficient to pay back your bank loan amount.

Simple to Finance

The moment if you are ready to buy your favorite property and worrying about the old property sale. Then here the gap finance plays a very important role. The Bridging finance acts as a bridge between the property which you were dreaming to purchase and your already existing assets. It acts as the financing for the down payment to buy a new property, simply borrowing capital on the existing home.

We can use them for Commercial Business Requirements also

Even after receiving much popularity also, even today also most of the commercial business owners are in assumption that, bridge finance can be used only for property development requirements also. But the truth is that the finance can be used for commercial development requirements only, such as paying large invoices and even to start a new business venture in the current competition.

Bridge Loans Saves a Time Lot

The availability of the Bridging finance is simple when compared to conventional loans, and it saves a lot of your time. Simply by using this finance, we can complete the new house purchasing process also quickly. At Bridge Direct the lender will take an instant decision on your request and in a less time, they release the funds in a less time. 

Uses of the Bridge Finance in the UK

Without worrying about the selling of an existing property, simply by making use of bridging finance anyone can make a new property. The bridging loan gives an opportunity to make use of 80% value of funds which are held on existing property. Below are few uses of the bridge loan in the UK region.

Bad Credit History Not a problem

Most of the borrowers in London, Manchester and other parts of the UK will show interest on bridge loans when they have a poor credit history. At Bridge Direct they are eligible for a Bridge loan and this is one of the important factors where most of the banks will not show interest to offer the loan when the borrower has a poor credit history previously.

Immediate Approvals

The loan approval process of the bridge finance is much simple and fast when compared to regular bank loans. In the meanwhile, the loan approval process at the bank is very tough just because of the recent economic crisis. Bridging finance is secured against equity held in an existing property or asset you can be assured of an instant decision. 

Buying New House is Much Simplified Now

In the UK region, buying a new house is much simplified with the help of bridge finance.  Simply utilizing gap finance anyone can buy a new property without selling the old property. The Bridging finance is an instant loan and it can be useful to ‘bridge the gap’, between the buying a new property and a long-term source of the loan.

We Can Start a New Business or Project at Anytime

Most of the people assume that the Bridging finance will only use the moment when you are planning to buy any new property. However, it is fact that this finance can be used for commercial requirements also. Such as paying large invoices or tax bills, while launching new products and expanding business services to other places.

When you are planning on taking out a Bridge loan then call to Bridge Direct on 020 3136 4969 for an immediate decision. The team of the Bridge Direct is direct lenders not a broker with 30 years of lending experience. 

What are Bridge Loans, and how can they be useful in property development?

Bridge loans have always been associated with property development. In this post we will be discuss exactly what bridge loans are and how to leverage their advantages.  

What is Bridging finance?

Bridge finance can also be referred to as gap finance or gap financing. This means the loan funds are designed to be used as a stop gap between fulfilling a financial requirement and securing a long term funding solution such as a mortgage. Normally the repayment duration on a bridge loan would range from 12 to 18 months.

Interest rates on bridge loans:

As the bridge loans are a short term secured loan, the rate of interest on bridge loans is usually a bit higher when compared with long term funding solution like bank loan or mortgage. The interest rates applied to these loans will differ from lender to lender, and potentially change dependent upon the risk of the loan. However, even though these loans can attract a higher rate of interest, they can still be utilized safely and save money by cutting out and speeding the house purchase process up.

Below are just a few of the advantages bridge loans can bring to the table?

1) Bridge loan lenders won’t ask any credit checks or have any kind of set criteria. Hence the funds can be received much quicker.

2) With the help of bridging finance the property owners can secure the new property without selling an existing an existing property.

3) Sometime properties can come on the market at inopportune times, for example when capital may be tied up in another property. Due to the quick nature of bridge loans, you can avoid missing out on a prime business venture by releasing equity and securing said property with a bridge 

4) During the loan approval process the lender won’t follow any strict guidelines which you usually see at during long-term funding approval process.

How Bridge Direct helps you:

When you are searching for bridge loan for any kind of business requirement, then Call Bridge direct on 020 3126 4969 or you can also reach them simply by filling the form on their website. The team of Bridge Direct has 30 years lending experience and offers the quick diction on your loan request.

Things We Should Know about Commercial Bridge loans?

A commercial bridge loan is available for those who need to get funds quickly.  This advance was first made available to provide a means to pay for the purchase of property or business pending the sale of another property.  This special type of advance is considered a short-term credit.  Most of them are meant to be repaid within an average of 6 months.

This type of advance is available quickly because it uses your current property and business as collateral.  The amount of these credits can vary greatly, but generally may be up to 85% of the value of the property or business.  This type of advance does not utilize the credit score or other factors to grant the loan.  Because it uses your home, property or business as security, they may be repossessed if the money borrowed is not paid on time or properly.

The terms of the advancement are generally slightly higher interest rates.  The ability to get the advance as well as the amount of the credit is based on the value of the property that is considered. This would include the commercial property that is being purchased or sold.

• Check the company’s website to know more about their services
• Use the Bridge loan Calculator on their website to know more about the interest rate, loan duration and how much amount they offer as a loan.
• Search on the internet for reviews about the company.
• Try to find there are direct lenders or not. When you are looking instant funding, then it can happen with the help of the direct lenders only. 

 But, if you are a resident of the UK then you no need to check above mentioned points, simply you can call to Bridge Direct for bridge loans. Because they are the direct lenders and offers the quick decision on any bridge loan request. The team of the Bridge Direct has 30 years of lending experience. You can reach them by calling on 020 3126 4969 to place your bridge loan request. 

Bridging Lending Solutions in the UK

Bridge Direct understands and recognizes many individuals and companies require Bridging Loans for a variety of reasons.  BridgingLoans, which can also be referred to as "short-term loans", or “gap finance”, have become increasingly popular over the years.

As direct lenders, when you contact Bridge Direct you can be assured that you will be speaking with a decision maker. They have substantial lending capital (over £15 million) and can offer the greatest degree of flexibility any kind of quick bridging loans.

Each and every deal is assessed on its own individual merits, so when you are looking for a quick loan, you can be assured it will be the right bridge loan for you.

Below are several potential reasons for using a bridge loan:

• Bridging Loans can be used if Individuals purchase a residential property, for reasons other than for their own occupation, such as an investment or development opportunity where a quick loan is required.
• Bridging Loans can be needed if Individuals are seeking capital raising on their own homes or indeed any other acceptable residential or commercial property that they own or may be purchased to get a quick loan.
• Individuals purchasing a residential or commercial property at an Auction could use Bridging loans.
• Companies seeking to raise money on their premise may apply for Bridging Loans.
• Bridging Finance is particularly convenient to counteract a short-term cash flow problem.
• Bridge Direct can complete loans, even to companies, in under 48 hours and pride themselves in providing quick loans.
• Bridge Direct lends on value no matter what condition the property is in.

In which scenarios Bridge Direct can offer financial solutions to individuals and companies?

Bridge Direct is able to lend to individuals and companies even if they have an existing mortgage. This form of lending is also referred to as “Second Charge Bridging Loans".

Consider this scenario:-

The Challenge.

A client-owned his house valued at £250,000.

He had a mortgage on his building society of £78,000. Mr. A

The client wished to purchase a residential property for investment, the asking price was £250,000. He needed to complete the transaction in under 4 days, thus needed a quick loan.

The Solution.

Bridge Direct lent the client a Bridging Loan of £250,000.

This amount lent was 100% of the new property purchase price.

Bridge Direct was able to arrange this 100% funding package by simply registering a second charge on the clients existing property and registering a first charge on his new property.

The entire transaction was completed in under 72 hours from the time the client decided to make contact with Bridge Direct. Another successful quick loan.

Bridge Direct is a popular lending company that covers all areas of the UK for bridging loans, quick loans, and short-term loans. Simply fill out our inquiry form on their website or give them a call to discuss your financial requirements.