Why You Should Consider Bridging Finance in the UK? Reasons & Benefits
Why You Should Consider Bridging Finance in the UK? Reasons & Benefits
Bridging finance in the UK can help you gain the time you need to get on your feet when faced with an urgent need for capital but not enough time to get approved for a traditional loan from the bank.
Bridging finance UK lets you buy what you need now and pay back over time at the interest rate of your choice, allowing you to get exactly what you want quickly and then pay later, as long as it’s within the terms of your agreement with your lender.
Here are some reasons why you should consider bridging finance in the UK as an option if you find yourself in this kind of situation.
What Is Bridging Finance?
The bridging finance industry refers to lending provided by companies that loan money to people who need a sum of money within a short period of time. If you’re in need of fast cash, bridging finance UK may be an excellent option for you.
There are several reasons why you might want to consider using bridging finance: if you’ve been turned down for a traditional bank loan; if your business needs more capital; or if you simply need more funds than what is available on your credit card or savings account.
There are many types of loans available from bridge lenders, including overdrafts and fixed-term loans. All of these loans have their own advantages and disadvantages. Before choosing a bridge lender in the UK, it’s important to understand each type of loan so you can choose one that best fits your needs.
How Does it Work?
The exact process of applying for a bridging loan varies depending on whether you’re borrowing from a traditional bank or going through a mortgage broker. For loans from banks, you’ll generally fill out an application, provide proof of income and show that you have secured financing for your home.
The loan is usually provided directly by your lender but could also be facilitated by an intermediary company that acts as an agent between lenders and borrowers. In either case, your lender will check to make sure you can afford both monthly payments before approving your request.
If you’re working with a mortgage broker instead of a bank, it may take longer to get approved because brokers are less likely to use automated underwriting systems; however, they can offer more competitive rates than banks due to their access to multiple lenders.
Once you’ve been approved, your bridge finance lender in the UK will send over paperwork to execute your loan agreement. Once everything has been signed and returned, you should receive a wire transfer of funds within three business days.
7 Reasons Why You Should Be Considering Bridging Finance In The UK
Bridging loans are short-term financial solutions that help those who need cash to tide them over from one month to the next or from one payday to the next until they receive their income.
Bridging loans UK can be used for just about anything, as long as you have some sort of collateral to offer up in return for the loan. So, should you consider borrowing this type of finance?
Here are five reasons why you should be considering bridging finance in the UK right now!
1) Convenience
Bridging finance is flexible and easy to obtain, making it a great choice for people who aren’t able to secure a loan through traditional channels. It can often help those who have had negative credit histories or face other problems getting a loan from banks and lenders. If you find yourself in one of these situations, then bridging finance could provide an ideal solution.
2) Speed
Bridging loans are often a quicker way to receive funding for your property than traditional mortgages. Depending on your circumstances, lenders may approve you for a loan within hours of submission; some may even be able to provide approval within 24 hours!
Compared to traditional mortgage lending, which can take several weeks or months, bridging finance makes it possible to buy a property much faster and more efficiently.
3) Flexibility
The very nature of a bridge loan means that it can be tailored to suit your individual needs. Unlike mortgages, which are tied to fixed interest rates and repayment terms, you have much more flexibility when choosing a bridge loan.
For example, if rates change or your financial circumstances change – as they inevitably will over time – there’s no need to worry. Unlike with mortgages, there are no penalties for early repayment of a loan.
4) Repayment options
If you need to repay a bridging loan UK, there are options. You could choose to put it on an interest-only payment plan, or you could consolidate your loans into one manageable monthly instalment.
After all, once your home loan has been approved and you’ve settled into your new property, life will return to normal. And with any luck, you won’t have to worry about getting another bridging loan again!
5) Affordable repayments
In many cases, with a loan over £20,000, it’s possible to repay your loan at a rate that is cheaper than high-street bank credit. That’s because one of our biggest advantages is that we can move quickly and lend funds on an unsecured basis – something that traditional banks struggle to do.
If you are looking for an affordable way to borrow a larger sum of money, then bridging loans in London might just be perfect for you.
What Are Some Other Benefits Of Bridging Finance?
The term bridging finance refers to funds that are used to cover a gap between selling a property and buying a new one. During these periods of time, which could last months or even years, people need access to funds.
By using bridging finance UK, they can keep their cash flow positive and use their money for other investments or purchases that may be needed until they settle into their new home. It’s also important to note that bridging loans have much lower interest rates than traditional mortgages because they don’t require credit checks or income verification.
This makes bridging loans UK an ideal option for those who have poor credit scores, no credit history, or limited income history. In fact, many people choose to apply for a bridge loan because it doesn’t require as much documentation as other types of loans do.
If you want to learn more about what bridging finance is and how it works, we encourage you to visit our website today. There you will find everything you need to know about how bridge loans work in order to make an informed decision before deciding whether or not it’s right for your financial situation.
