In our previous article we explained what the types of bridging loans are and who they are used by and this article will give more details about bridging loan rates UK.
Bridging finance is also used by property developers extensively, particularly when buying property at auction since they can bid on a property without having the money to do so but they can quickly arrange a bridging loan to pay for it quickly.
Property developers also use them for refurbishment projects so they can improve a property before selling it on.
Bridging loans are also increasingly popular with businesses looking for a short-term cash input for a variety of reasons such as buying stock for seasonal orders or to complete a major sale.
Bridging loan rates
So while the variety of purposes for bridging finance is impressive it should be appreciated that bridging loan rates tend to be slightly dearer because of their convenience and short-term nature than a mainstream lender will be charging.
It also means that the borrower will be needing to put up collateral for the loan so the lender will have some recourse should the borrower not be able to repay when the loan term ends.
These last two issues also indicate that bridging finance is a type of loan that isn’t for everyone and not everyone will be accepted for bridging finance.
However, bridging finance is for those who know how they will be able to repay the loan and they are attractive for those with job security and a steady income.
Attractive bridging loan interest rates UK
For most borrowers of bridging loans, they are an extremely good way of accessing large amounts of money quickly and they are able to exit the loan soon as they can or when the fixed term ends and enjoy attractive bridging loan interest rates UK.
Generally, a bridging loan lasts between six months and a year and the applicant’s credit score is not as important to a bridging finance lender than it is to a major bank since the borrower will generally have to put up collateral for the loan. This also means there’s no delay in the application and loan approval process.
Indeed, many bridging finance firms have reduced their application process to a point where people can apply online and find out quickly whether they will be granted a bridging loan. Most finance firms require the applicant to be at least 18 and a United Kingdom resident.
The purpose for the bridging loan is not restricted and it can be used for anything that is legally allowed. And for many, they can borrow as much as they want since they will be putting forward collateral to secure the loan.
Bridging loans are not for everyone but for those who are interested in finance and wanting to know more about bridging loan rates then contact the experts at the Bridge Crowd for more information.