Many people are taking a keen interest when it comes to bridging market for loan attainment. For the beginners, this whole scenario can be a troublesome task to perform. Therefore, here we have compiled a complete guide which will help you to figure out how you can apply for a regulated bridging loan.
Introduction About Regulated Bridging Loan Market
Bridging loans are the form of short term process of loans that stays between the duration of 1-5 months. They are generally secured against any type of property over the first or second charge terminologies. The entire loan amount will be 70% of your property value in which the property can be either investment property or commercial land or even residential.
You can arrange the whole process of bridging by taking help from some high street banks or even finance companies. Top street banks are much more conservative when it comes to lending, whereas private companies are quick with their processing system. They are not at all concerned about any credit issues and earning a profit.
Essential Reasons Why You Need Bridging Loans
- In case if you are buying any property at the auction where the completion is needed within 28 days.
- Bridging loan system is based on short term flow of cash.
- It might be stopping the house repossession.
- Settle all kinds of taxes and liabilities of VAT.
- It can raise the money in view with any legal issues or divorce settlements.
The total cost to set up the bridging loan is quite a lot expensive. The whole pricing will be depending on the suitable value of your property. As much high the property value is, the higher will be the fee of valuation. Commercial valuation is a little bit expensive as compared to residential valuation.