Bridging loan – a flexible financial choice

Thursday, 20 October 2011 09:36

Bridging loans are incredibly flexible

Bridging loans are incredibly flexible

Bridging loans are not just a quick way for you to borrow money, but are also highly flexible. Whatever your financial needs are, they may prove to be a product that you wish to consider.

Indeed, as a bridging loan involves you taking out credit against the value of a property, it can provide you with the means of obtaining several thousand pounds. The money can be put towards meeting a vast range of financial goals – both personal and professional – but they are perhaps most often used by consumers looking to advance up the housing ladder.

You may want to apply for a bridging loan if some unexpected problem in the buying transaction – for instance, if there has been a delay in getting a valuation of your current home carried out – threatens the collapse of the entire chain and places you at risk of losing out on your new residence. However, with a bridging loan this needn't be the case, as it can provide you with the cash needed for the deal to go ahead.

Similarly, applying for bridging finance can prove an effective move if you have bought a property at auction. In such instances you will only have a few weeks to raise the money needed to complete the transaction, in which case a bridging loan can offer a timely cash boost.

However the flexible nature of these loans means they can be used for much more than just the acquisition of property – although this does tend to be the most popular reason for obtaining them. In the past, people have turned to them as a way of consolidating multiple debts and to fund major home improvement projects, while businesses have used such loans to inject capital into their organisation and buy out rivals, so you can be sure they will be able to serve any purpose you wish to put them towards.

This is something that is aided by their nature as a fast form of finance. You'll find that after submitting your application to a bridging loan company, you will be informed within 24 hours as to whether you have been approved. Provided this is the case, the cash could be in your account in just a few days, so if you need to raise money quickly, this can be an ideal option to pursue.

For many people, concerns about their credit history hold them back from applying for a loan, but with bridging finance deals this does not have to be the case. Provided that you own your home and are not currently bankrupt, you should be in a position where you can successfully obtain a bridging loan. Even if you have had difficulties with previous credit cards and loans or have county court judgements, you will still be able to borrow the money you need.

The sense of flexibility that bridging loans can offer is also seen in the manner in which you repay what you owe. Although some companies can impose early settlement charges for clearing debts ahead of schedule, other lenders take a more accommodating approach and allow you to set your own timetable for repayments so it is suitable for you.

Whatever your circumstances or the goals you are hoping to achieve, a bridging loan can prove an effective way for you to borrow money.



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