Are you planning to buy your dream property? But do you lack the funds required for it? Do not let this stop you from taking a step towards your dream. Bridging loans can help you secure the funds needed for your property purchase. In this blog, we will discuss what bridging loans are and how they can be beneficial for you.
What are Bridging Loans?
Bridging loans are a form of short-term finance used to bridge the gap between property transactions or refinance debt. They are usually taken for a term of 12 to 36 months, but can also be repaid as early as 3 to 6 months.
Benefits of Bridging Loans
One of the key advantages of a bridging loan is that it can help you secure a property quicker than a traditional mortgage. This is particularly useful in situations where a property sale has fallen through, and you need the funds quickly to secure the next property. Additionally, bridging loans can be used for other purposes such as property development, auction purchases, and more.
Applying for a Bridging Loan
To apply for a bridging loan, you will need to approach a regulated lender or broker, who will assess your situation and provide you with lending options that match your needs. A credit check will be carried out as part of the assessment process, and the lender will also want to know about your exit strategy – i.e. how you plan to repay the loan.
Fees and Interest Rates
Bridging loans typically have higher interest rates than traditional mortgage rates, but they are more flexible in their lending criteria. The interest rates and fees vary depending on the lender, the loan amount, and the loan term. Be sure to understand the fees involved and get a clear understanding of the repayment terms before committing to a loan.
In conclusion, bridging loans are a great option for anyone who needs a short-term loan to bridge a financial gap. Whether you are buying property or refinancing debts, bridging loans can be a valuable tool to help you achieve your goals. If you are considering a bridging loan, be sure to do your research and understand the terms and conditions before signing up for a loan.
Don’t let a lack of finance be the reason you miss out on your dream property. Bridging loans can help you secure your purchase and ensure your property goals and dreams are realized. Contact SU Credit today to see how we can help you bridge the gap in your finances and secure the property of your dreams.
