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.
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