The Qualifications To Apply For A Bridging Loan
The bridge loan is in fact a short term funding loan and is mainly used to bridge the gap between the debt and incoming dues. The bridge loan can also act as a short term in your pressing needs and circumstances. The bridge loan is more expensive in compare to normal loan. The bridge is generally meant for people intending to purchase new property or house, before selling out their existing property. You may say it is a short term method of accessing money at higher interest rate.
Due present financial crisis most of the commercial bank and building societies are reluctant to lend money to financial crunch. This has created an influx of bridge loners in the financial markets, who are ready to loan money at very high interest rate. Because of the tedious process of getting loan from the commercial bank or building societies, it is becoming a trend of the day for the borrower to go for bridge loan.
There is no hard and fast rule for getting this type of loan from the lender, and each lender of money set out its own terms and conditions for giving loan. Any solvent person with regular income may make application for this type of loan, In most of the cases the lender ask for high security against his loan in order to secure his money, A bridge loan lender charges high interest rate and processing fees and may even ask for security of 65 to 70 percent as security. Some of the lender insists on mortgage of property as security. A loan seeker without stable income is rejected for the loan by the bridge loaner .The bridge loaner is reluctant ant to take high risk for his money. Since the loan is for very short time the entire loan has to be liquidated in planned manner as sought by the loaner. Getting bridge loan from the bank take long time period, although the rate of interest charged by the bank is less in compared to the rate of interest which is required to be paid to the bridge loner in financial market.
UK commercial Finance is among the best bridge loan company that sanction the loan in an easy and comfortable way. However, customers have to pay the high interest rates and follow the terms and conditions of the UK commercial loans.