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TOP 10 Reasons Why You Should Apply For Bridging loan In UK

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YuiwA bridging loan is the latest form of a mortgage loan but possesses modern features which make them even more popular in the United Kingdom. The bridging loan provides an online platform to the borrower where the borrower and lender meet directly. Such loans are specially designed for the individuals and businesses so that they can fulfil their current and immediate financial need and expenses. These loans can be used for any legal activity or any activity which does not harm the other individual. Let’s discuss the reasons why businesses and individuals should use bridging loans.

 

  • Short term in nature 

Unlike  traditional loans, bridging loans are short term in nature as their time period consists of three months to twelve months. There is no need to wait for years to repay the loan amount. Such loans are comparatively less hectic than traditional long term loans.

 

  • Fast Bridging finance 

The bridging loans are known for the speed of arrangement and also known as fast bridging finance. Once you have applied for the loan and the lender approved it. You will be financed immediately without any hurdle. And you can fulfil your need instantly.

 

  • Any type of property can be used as collatera

Bridging loan companies ask for the property from the borrower to put as collateral. The property could be of any type, for example residential, under construction, commercial, land, building or uninhabitable property. 

 

  • Cost-effective

The bridging loans are cost-effective, as they do not charge an exit fee and end earlier compared to the traditional long term loans. You can save the broker fee too if you have not applied through the broker you do not need to pay the broker fee. Moreover, You do not need to go here and there in search of a suitable lender.

 

  • Work as a bridge while purchasing a property

The bridging loans help an individual and business while purchasing a property and act as a bridge. For example, you want to sell the old property and buy a new one but you do not have enough money to buy the property and are waiting for the old property to be sold. The bridging loan can help  you to purchase the new property and after selling the old one you can repay the loan amount. 

  • Secured for both borrowers and lenders

The bridging loans are highly secured for both the borrower and lender. Because the borrower put the property as collateral. If the borrower does not repay the loan, the lender will sell it and receive his money. As compared to other traditional loans, bridging loans are more secured for both.

 

  • Flexible lending criteria  

The lending criteria for bridging are flexible as the borrower must be above eighteen years of age. Must be a resident of the United Kingdom. In the case of business, the business must be registered in the United Kingdom. The borrower must put any kind of property as collateral. You need to follow just these few criteria to avail the facility of a bridging loan.

  • Easy rescheduling

Bridging loans have an easy rescheduling facility. For example, if the borrower is unable to pay the loan on time. The bridging loan companies allow the borrower to apply for rescheduling. Where they create a new schedule for the borrower to repay the loan.  

 

  • Use to meet immediate expenses

An individual or business can use the bridging loan to meet their immediate expenses. For example, an individual can use the bridging loan to pay his taxes, pay tuition fees, or purchase a phone and a car. The business can use the bridging loan to restock the inventory, pay taxes, for giving salaries to employees, and to fulfil their obligations of long term financial loans. It also helps the business and individual to meet the tight deadlines of payments.

 

  • Easy to get rid off 

As you know the time period of bridging loans is short, the bridging loan comparison enable their borrowers to get rid of the loan as soon as possible, without any additional charges. 

More Reading informative content: Businessesinsiders

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