Reasons Why a Bridging Loan is Right for You

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As a loan form, bridging finance has become quite the source of funds today as far as many investors are concerned. Considering the approval of the item will likely mean you meeting all the necessary requirements set by the lender, it helps massively if you are well aware of the requirements that you are supposed to meet first.

Purchasing a property while waiting for an existing property to get sold

This is often the topmost reason why people will take advantage of a bridging finance. Being in a house chain is no fun experience at all. A lot of people these days have dealt with a situation where they have to delay their decision to buy a hose that they are interested in because they are still waiting for their present property to sell. Bridging loans are most useful in this instance since it is going to be the one used to complete the purchase.
 
Buying at a property auction

When you bid at a property auction and you succeeded you will be required to pay the 10% deposit right after the event. Then, you will also be given 28 days to pay the rest of their winning bid amount in order for the same to be completed. Bridging finance is more ideal for these situations since it teaks a lot less time to process and to get approval compared to the usual means of getting finance.
 
Developing a property
There are times when you may be interested to buy a property that appears to be derelict. Most mortgage providers are likely going to turn down an application of this nature due to the sorry state of the property involved. Not bridging lenders though. You can trust that your side is going to be aired by the lender which means that you get a better chance of getting approved for a loan if you will g #o the bridging route.
 
Working capital for the short-term

There are a lot of times when businesses may require some form of cash injection. This type of loan can be used for this purpose too. The flexibility of the loan also means that its use is no longer just limited to anything related to property.
 
Buying a land before securing a permit for the planning

If you are going to for a long-term loan when buying a land, then be aware that its approval can often be dependent on getting the planning permission. This is not something that is required by bridging lenders through. Just as long as the developer or the property investor can be sure that the planning permission is going to be granted, it is possible to use the funds from the bridging finance to pay for the purchase.
 
When you are refused credit

Borrowers that are unable to get approved for a standard loan due to poor credit records can always rely on bridging loan providers to assist them. Just be aware that regardless of the reasons behind the interest in borrowing money, a property security is always required for the loan before it will get approved.

Watch the video below to learn more.
 

 
Learn more about the many ways that a bridging loan can assist you these days by reading about Richard Butler Creagh online. You can also follow Richard Butler Creagh on Google plus here.
 
Posted: 03/04/2018 15:06:49 by Richard Butler-Creagh | with 0 comments
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