Bridging
loans are especially suited for people who require
immediate funding. It is highly suited for people who wish to go for a second
property, auctioneers, amateur property developers. It is a short term loan and
is also known as interim loan. As this is a short term loan, a permanent
financier has to be sought in the meanwhile. The interest rate is also quite
steep. Therefore the lenders need to be wealthy with assets. As there is no
financial verification during the loan process, it comes as a boon for people
with bad financial history.
Regulatory
bodies
There are many institutions that provide bridging loans. However only some of them are regulated by Financial Services Authority, so be careful while opting for this loan. You can refer to for more details on the subject. As this is not a secured loan, it is best to go for an institution which is regulated by FSA. The interest rates are quite high along with the processing fees, administration fees which hikes the repayment amount several notches above the conventional loans. Thus this loan is not meant for general people requiring loan.
Assessing
financial stability
Since bridging loans
require financial robustness, it is advisable to assess your financial
condition before opting for this loan. If required you can consult a financial
advisor who can guide you on the right track and also suggest a suitable
bridging loans provider. However it is best to go through their credentials and
take feedback from their past client before opting for such loans. Bridging
loans can save you from a messy financial situation and provide relief to your
stress. You ought to judge it from every angle and take this loan as it will
entail a huge financial burden.
