For those looking to find the best bridging loan UK it must be appreciated that the loans are for the short-term and will range from a few months and possibly up to two years.
The amount that can be borrowed also varies between bridging loan lenders while some will loan several thousand pounds quickly, others will also provide funding worth several million pounds and this can also be arranged fast.
Indeed, it’s this ability to access capital funds more quickly than from a mainstream lender, for instance, that is helping to fuel their growing popularity.
Looking at a UK bridging loan
However, for those who are looking at a UK bridging loan they need to understand the difference between a first and second charge.
In simple terms, the primary mortgage or loan that is secured against a property will be considered as the ‘first charge’ which means that the loan will take precedence over any other finance the owners secure against it.
If the property has sufficient equity in it then it’s possible to have a ‘second charge’ loan secured against it with a finance firm.
Once the lender has been approached each application is reviewed individually and the paperwork can be completed so funds could be received in just 48 hours.
There’s no doubt that this quick process is a major boost for many people and the opportunity of finding out whether a bridging finance firm will agree to an application quickly is also much appreciated by many.
Process for applying for UK bridging loans
The process for applying for UK bridging loans is straightforward with an applicant filling in a form and offering various identification documents and the finance firm then valuing the security being offered.
Generally, a borrower will put up security such as a property or land and the paperwork is then completed by a solicitor.
While there are generally no upfront fees when applying for bridging finance, it should be appreciated that there will be an administration charge for a loan once it has been agreed; some lenders also have an exit charge when the loan is repaid.
Important consideration for those thinking of bridging loans
Finally, the other important consideration for those thinking of bridging loans is that the rate of interest will vary depending on the lender, the borrower’s circumstances and the purpose of the loan which means it will pay to shop around to find the best terms possible.
Or, it may just be as easy to contact the friendly team at The Bridge Crowd to find out which firm is offering the best bridging loan UK currently.