What are Bridging Loans?
Bridging
loan could be describes as a short-term property secured loan used to 'bridge'
a gap between a debt coming due and the main line of credit becoming available
in the UK. Or can simply act as a short-term loan only liable for the amount of
time that the loan is used. In another words bridging loans are provided for a
few months (usually 12 months or less). Bridging loans arrange faster generally
7 to 28 days, sometimes this can be reduces in few hours and require less
documentation in the comparison of another loan.
When
would someone need a bridging loan?
Bridging
loans are used for a wide variety of reasons. This can be used in both
commercial and property transactions. Whether you are buying a property,
building a property or raising funds for your business, the short term loan can
be an option. Some of following should be as below:
- Quickly
securing a property
- Repairing
a broken property chain
- Building
a house
- Temporary
Cash Flow Cover
- Renovation
and development
- Raising
capital
- Tax
liabilities
- Meet
business obligations
Who
would qualify for bridging finance loans?
- Anyone
who has equity in UK property or land that you can use as security to repay the
loan.
- Companies
or individuals
- Clients
who are employed, self-employed or not employed
- Clients
with an excellent or impaired credit rating
- Clients
who can or cannot prove income
- If
you find yourself unable to sell your property in time to buy a new home

Conclusion
Bridging
loan is becoming more useful and valuable by individuals and businesses owner
looking for quick, short term funding solutions. You can explore more at the
website of DNS Accountants for what are bridging loans and its FAQs.
- What
are bridging loans and how do they work?
- When
should you use bridging loans?
- How
much can a client borrow?
- Where
can you get a bridging loan?
- What
is the Interest on a bridging loan?
- How
to calculate bridging loan?
For you knowledge you
can explore this article Student
Finance in the UK.
This content is originally shared at: https://goo.gl/YLJEzd