Bridging finance is simply a form of short-term loan that can be taken to finance property or for other uses. It is more of a short-term property backed finance. They are used to fund your needs for a period while you are awaiting long term funding or larger funding. There are many reasons why people use bridging loans. Here are some of the uses of bridging loans
To purchase property while another is waiting to be sold
This is the most common use of bridging loans. Many people always end up being caught in house or property buying chains. Some people would wish to buy a property but they cannot do it because the buyer of their existing property is not in a position to complete the purchase. This can happen when the buyer is waiting to sell their property. Bridging loan is a loan that you can take to complete a house purchase with ease. You can then repay the loan once you have sold the property. Instead of waiting for long and end up losing the house that you have been eying, you can choose to go for a bridging Tiger Financialloan.
When you are buying a property at an auction
This can also be another reason why you need that bridging loan. After you have successfully bid on a property in the auction, you will have to deposit 10% of the amount to secure the property and the rest of the price will be due within 28 days after the deposit. If you choose to go for a standard mortgage, the all process can take up to 28 days and even more. To avoid being late on a payment, you can choose to go for a bridging loan. This is because a bridging loan cannot take that much time to be approved. Bridging loans can be arranged quickly than a standard mortgage and use it for the payments. Once the mortgage is ready, you can then repay the bridging loan.
When the credit record is the hindrance
If local financial institutions cannot accept your loan application because of a poor credit score, the best way to secure a loan will be through getting a bridging loan. As long as you have security in the form of property to secure the loan, your loan processing will go through. Other bridging loan lenders will consider other business assets as collateral or security. Just like the traditional loan application, you will be needing documents to support the application process. The supporting documents will always vary according to the reason why you require the loan. Some lenders have specialized in one or more lending areas. To find the best solution for you, consider getting the best bridging loan, broker. They can guide you through the application process. They can also negotiate for you. With brokers, everything is much easier. To secure a bridging loan with ease, visit tigerfinacial.co.uk