One of the reasons that short-term finance is growing in popularity is that the application process for a UK bridging loan is straightforward and easy to understand.
It is also, unlike mainstream lenders, a quick process with many lenders offering a decision within a week and some will offer a decision within hours or a day, depending on the circumstances for the bridging finance.
Along with this ease of access it’s the lender’s ability to meet demand so if someone, for instance, needed cash to buy their dream home but didn’t have the financial resources, then bridging finance could be the answer.
Bridging loan UK lender
Bridging finance is also popular for those wanting to buy property at auction and unlike a mortgage lender who will take weeks or months to make a lending decision, the bridging loan UK lender will be much quicker.
In addition, a business can also access short-term finance should they need to buy stock or premises in order to expand or grow their profitability. The uses and purposes for bridging loans are varied, as are those applying for them.
However, for anyone interested in this type of finance needs to appreciate that bridging loan rates are going to be higher than from mainstream lenders because of the nature of the loan. There are also administration fees that are usually applied when the loan is accepted.
Bridging loan rates UK
For this reason, potential borrowers should really use a bridging loan calculator to ensure they are aware of these fees and the bridging loan rates UK for interest charges before committing themselves to bridging finance.
A UK bridging loan has many benefits and with so many purposes it’s no surprise that growing numbers of businesses and individuals are accessing them rather than applying for a loan with a high street lender.
There’s no doubt that as mainstream lenders continue to tighten their lending criteria that the ease and access of short term financing solutions such as bridging loans will continue to grow – borrowers should research thoroughly before committing to this type of finance.
With a growing number of UK bridging loan lenders in the market there are also a range of products to meet growing demand and for anyone who needs more information about bridging finance and what it can be used for, the helpful team at The Bridge Crowd can offer information.