In recent years, the market for bridging loans has steadily grown. Bridging loans are a short-term funding option that helps to bridge the gap whilst other finances are being secured. They can be particularly invaluable when it comes to facilitating a property purchase that would otherwise not have been possible.
The Process of Bridging Loans
Bridging loans are specifically designed for helping individuals in need of quick finance to complete a purchase or renovation of a property. The loans are generally offered for a period of 1 to 12 months. The influx of bridging lenders in the market is a direct consequence of the reluctance of banks and other conventional financial institutions to lend without strict credit checks.
The process of acquiring a bridging loan is extremely simple and hassle-free. Most bridging lenders work privately and are completely free of red tape. They offer loans strictly on the basis of the value of the property offered as security and on the agreed exit strategy. Bridging lenders are not concerned with the status of the borrowers or their ability to make payments. From overseas borrowers and companies to borrowers facing bankruptcy, bridging loans are the perfect solution for them to manage their finances. The entire loan application process takes 5 to 7 days to complete and individuals do not have to worry about excessive paperwork.
The Use of Bridging Loans
Bridging lenders do not put any restrictions on how a borrower can use the secured funds. With access to funds, a borrower can invest in a new property, choose to refurbish an existing residential or commercial property or undertake full-scale development of buy-to-let properties.
So, if you have equity in your property and are in need of quick access to funds, a bridging loan is the ideal solution for you. Talk to a bridging lending specialist to discuss your specific case.