With UK bridging loans growing in popularity there’s also an increase in demand from potential borrowers to learn more about this flexible form of finance.
Essentially, a bridging loan is a short term financial solution with the loans being used for nearly any purpose.
A quick search online or a chat with a bridging loan broker will reveal that this flexible finance can be accessed quickly and easily with many borrowers having the money they need within a week.
A UK bridging loan quick to arrange and flexible
Not only is a UK bridging loan quick to arrange and flexible but they are also meeting a growing range of needs where brokers can arrange a loan that suits a borrower’s individual requirements.
There are also a range of lenders with a range of different fees and interest rates but these will, largely, depend on what the money is being used for.
Many lenders will be willing to offer anything from several thousand pounds to several million pounds depending on the security that is being used.
It’s also possible for a borrower to access a bridging loan without having to make any repayments whatsoever and they can have the interest ‘rolled-up’ so they repay the capital plus the interest when the loan is due to be repaid in full.
People are aware of a bridging loan UK
Most people are aware of a bridging loan UK when they need to buy a property while they are selling the current home and the money is used to ‘bridge’ the gap between having to make a purchase and receiving the money for repaying it.
Bridging finance is also popular with property developers who, for example, can buy property at auction and then arrange for the finance after making a successful bid so they can take possession of it.
Other developers use bridging loans for refurbishing and developing a property while there is a growing trend for businesses to use the loans for buying stock or to refurbish a business premises. The purposes and the people and businesses applying for bridging finance are varied.
Bridging loans are growing in popularity
Other reasons why bridging loans are growing in popularity is that the criteria used by lenders vary and while some will undertake credit checks, others will not.
Some lenders will fully meet a borrower’s requirement while others will offer a proportion of the requested loan. Some lenders can also complete a bridging loan application within 48 hours if necessary.
Essentially, UK bridging loans offer a flexible form of short-term financing and tend to be quicker to organise and drawdown than traditional loans from high street banks, for instance, and with them growing in popularity means they are becoming a crucial part of the country’s lending environment.