The bridge loans are a short-term financial solution offers by a bridge loan lender for residential and commercial requirements. The bridge loan plays a very important role when any buyer planning to buy a new property, but worrying about lack of insufficient funds and waiting for his current property sale. In that scenario the borrower will use the bridging finance for a limited time period until the availability of longer-term funding. Most of the lenders will offer the funding up top 80% value of equity held on his existing property. The gap finance is short-term in nature and repayment duration would range from 1 month to 12 months.
Below are the few major advantages of Bridge loans:
Poor credit history no problem
Most of the customer’s loan request application is going to be rejected by banks when they have poor credit history previously, just because of the recent financial crisis. But at bridge loans, all customers are eligible for this finance. While accepting any loan request, the lenders will not look at the credit history of the borrowers, even if they have any bad credit history previously they don’t treat that one as a negative factor. The lender majorly concentrates current value of the existing property and loan repayment duration.
Saves Lot of time
The loan approval process of the bridge loan is much simpler when compare conventional loans. Most of the lenders process any loan request on the same day. Where in conventional to get any approval sometimes it will take days and even months because the banks will follow strict guidelines before accepting any request, that’s why it will take more time. Where the bridge loan lender will concentrate on the current value of the existing property and loan duration. The minimal verification process will help them to take the quick decision.
The bridge loans are going to good choice when the borrower needs urgent cash requirement and waiting for long-term finance, in that scenario making use of this quick finance would going to be the right choice.
Not only for Property development
Most of the lenders across London, Manchester and other parts of the UK are in an assumption that the bridge loans can be used for property development requirements. Because since over the years, this can be a good tool for property developers. But the bridge loan is also good choice even for commercial business requirements also. As we know that most of the frim owners will not able to launch new products on time just because of insufficient funds. But in recent times, many commercial business owners are making use of the bridge loans to while launching new products or expanding their business to other cities or areas.
The bridge loan repayment option simple and flexible
The loan repayment option of bridge finance is more flexible and simple when compared to permanent financing. In traditional loan, you will be expected to show the bank that your income or revenue will be sufficient to pay back the loan amount.
Bridge Direct bridge loans:
Above are the few major advantages of bridge loans. IF you are looking for this temporary loan in the UK region for your property development and commercial requirements, then keep the Bridge Direct as a first choice. The team has 30 years of lending experience and they process any loan request on the same day. Below are the few major advantages of Bridge Direct bridge loans:
- Loans from £30K to 500K
- No upfront fees
- No middlemen - direct access to funds
- No proof of income required
- Each deal assessed on its merits
- Instant Decisions with no credit search required
- No Set Criteria
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