Just like any other kind of loan, bridging loans also have their terms and conditions. The only difference is, bridging loans do not have tough conditions as compared to traditional loans. Bridging loans are the kind of loans that people take when they are in urgent need of money. Today, you can take bridging loans against any property including land. A bridging loan can help bridge between buying of auctioned property, it can be used to bridge between buying of property such as a home as you are waiting for property resale. It is generally a good short term loan when you are in urgent need of cash. If you find the best bridging loan lender, you will find that bridging loans are affordable, the process of acquiring the loan is very smooth and that the interest rates and fees are not that huge. But why should you go for a bridging loan?
Why consider using a bridging loan
A bridging loan is the type of loan that is always requested by borrowers as a supporting form of finance that can proceed with a long term kind of funding. Sometimes these kinds of loans are mistaken as an alternative loan for mainstream borrowing but that is not the intended reason for bridging loans. If you are thinking of getting a bridging loan, you should as well have a proper exit strategy. This should be very necessary before you can commit to any terms. A good exit strategy should be a long term financial solution. It can be a mortgage or considering selling a property. There has been an increase in bridging loan lending because the traditional lending platform has become stringent about lending.
Who can use a bridging loan?
Just like the traditional loan, not everyone is capable of using a bridging loan. Bridging loans are the kind of loans that are most commonly used by many property developers. Investors and landlords are also among people who commonly use bridging loans. Now, these kinds of loans are also being offered to individuals and even businesses as long as you are looking forward to taking advantage of the short term finance solution. To qualify for a bridging loan, it will depend on terms and conditions in your state or country. For example, in the UK, one must be 21 years and above of age to qualify for a bridging loan. Other things that will determine your bridging loan acquisition include your credit score and what you have to offer as security for the loan
The cost of abridging loan
Just as expected, a bridging loan from Tiger financial can cost higher interest rates than the traditional form of finance. The interest rates are always charged monthly depending on the nature of the finance. Many people always try to secure a bridging loan based on the interest rates. You should be very careful especially when the interest rates are low because the exit fee might be too high.