Bridging loans are a common type of short term loan that has helped many property investors in the funding of their projects. There are many ways through which one can use bridging loans. Bridging loans can be used in planning gain, for acquiring a property, or for funding light refurbishments. Before you even think of getting bridging loans, you will need to understand what they are, how they work, their benefits among other things. Here are some of the things to know about Bridging loans
Bridging loans regulation
Before you can utilize a bridging Tiger Financialloan, it is better if you knew whether they are regulated or not. Bridging loans are the kind of loans that are both unregulated and regulated. If the security property will be occupied by the borrower, the bridging loan will be regulated. Suck kinds of regulated bridging loans are commonly meant for support chain breaks, homeowners, or for quick acquisitions before they can sell their existing property.
Bridging loans can be unregulated. This is the kind of loan given to those borrowers who have no intension of occupying the security property. If the property is used for business purposes, the loan can also be unregulated. The two types of loans are the most common ones and are always used in acquiring land and property by many property investors. They can also use loans in funding their work.
What are some of the uses of bridging loans?
Bridging loans are known for their flexible criteria. Due to that, they can easily be used by many property investors for different reasons. Therefore, bridging loans can be used in purchasing property at auction, it can be used in securing a land, residential, or commercial site for future development or work, it can help raise capital for future projects, used for financing development projected that are completed, and for funding of small refurbishment projects. For more on uses of bridging loans, visit tigerfinacial.co.uk
How can on get bridging loans?
Bridging loans are loans that are not offered by high-street banks. Therefore, to get these kinds of loans, you will have to approach specialists’ lenders. Depending on the loan lender, you can easily have a breakthrough through a bridging loan broker. You can also choose to approach the lender directly. Just like any other mortgage application, you will have to go through a valuation process, a legal process, and an underwriting.
Should you apply for a bridging loan?
There comes a time when applying for a bridging loan is the best solution and option and times when applying for a bridging loan is not the best option. If you are not sure if you should apply for a bridging loan or not, make an effort to discuss that with your intermediary. Any responsible lender can be able to find out if the loan is right for you or not during the application process but you can save yourself a lot of time if you choose to discuss it ahead of your application.