Comparing bridging loans with conventional mortgages shows that the bridging loan is highly speedy although you need to secure it with an asset. If you want to pay for a property before selling your old one then a bridging loan acts as a short-term finance option.
In this article we will look at practical uses of bridging finance, who qualifies for it, what benefits come with using bridging loan calculators as well as several other things.
What are bridging loans?
Bridging loans are used by individuals and businesses to meet their financial goals and create immediate cash flow. It helps cover the cost of buying something before the availability of sufficient finance. Now, to ensure you don’t get into trouble, it’s important to use the bridging loan calculator. Acting as an indispensable tool, you can make smart investments and choose the right loan option for you by using it.
Applications of Bridging Loan
Bridging loans are used in many legal scenarios but the most common purposes where they fit are:
- You are stuck in a collapsed property chain and don’t want to lose your dream home.
- You are trying to buy an auction property and looking forward to raising funds quickly.
- You have to buy an unmortgageable property and want it to make it habitable or good enough for rent to arrange a traditional mortgage.
Basic Eligibility Criteria for Bridging Loan
For the approval of your loan, the following criteria must be met:
- Your minimum age should be 21 years
- You need to be a UK resident
- Credit history including CCJS, arrears, and defaults will be taken into account and accepted until exit isn’t dependent on refinancing
- There’s no need to show any income proof if you aren’t going to pay the loan through refinancing.
Property as a Security for Qualifying the Loan
You will have to put the property as a security after meeting the basic eligibility. Any of the below can be used as security for loan approval:
- Houses, flats, bungalows, or houses.
- Commercial property can be treated as security if, in the future, it will be converted to one or more residential properties.
- More than one property can be utilized as a security
- Properties with poor repairing state are also a valuable security source for bridging loans.
- Land
How Bridging Calculator can help you secure a bridging loan?
Securing a bridging loan requires a clear understanding of your borrowing power before applying for it. This is when the role of a bridging calculator comes into play.
- It gives you a quick insight into your borrowing power and accessing the amount of loan you can afford.
- Get a rough idea of the interest rate you have to pay every month.
- Empowering people in making informed financial decisions.
- Helps in knowing an overview of the repayment schedule and more.
- Not only all these, but a bridging calculator saves you from losing money or making the wrong financial move.
Benefits of Using a Bridging Calculator
For financial planners, a bridging calculator is an essential tool. By using it, you get the following benefits:
- When it comes to various loan offers, a bridging loan calculator allows it to compare them in real-time and enables you to access the financial consequence of making every choice. As a result, it gives you the transparency to make a well-educated decision.
- By using a bridging loan calculator, you can analyze the affordability of the available loan options and thereafter judge your capability to afford it. In addition, it allows you to choose a loan that goes well with your budget limitations.
- As the bridging calculator gives you a broad idea about short-term financial pros on every loan, it pushes you to plan up a repayment strategy that aligns with your financial goals as well.
- Bridging calculators come with the automatic comparison process so your time is saved in all the calculations.
What to do if you aren’t able to decide?
Making smart financial decisions is not everyone’s cup of tea. That’s why the bridging calculator exists but even if it fails, then you can move ahead to a bridging loan provider.
Get Secured Loan Solutions to Meet Your Needs
Bridge Loan Direct has been a trusted partner for the past 35 years in providing bridging loans and simplifying your financial journey. It maintains integrity and transparency to foster a long-term relationship with the clients.
With the help of this company, you can seize the right financial opportunity at the right time. It also provides you the flexibility and speed to make decisions timely. The best part about choosing Bridge Loan is getting financial security through a streamlined process and having access to more than 300 lenders in the UK.
