Are you shifting to some other place to relocate in case of a new job or some other personal issues? If you are a homeowner then you may be thinking of selling the home, where you currently live and preparing yourself to buy a new home. It is a rational decision if the location of the upcoming city is good, as living in own house is a luxury in itself. Here, you can use the amount received on the sale of current property to procure another home but what if the upcoming location is quite costlier than the existing one?
People, who have a savings account, are in a win-win situation here as they can withdraw money from the account and pay for it. What about the individuals with not have enough savings and any other source to pay off for now?
Mainstream lending institutions held longer processes and if you are all set to purchase it, then a mere difference should not become an obstacle. To satisfy your desires in pressing stances, when a difference is putting stress on you due to inability of buying home, get bridging loans from the direct lenders. It is because the online lenders influx money into the market for the people, who are in hurry to get the funds.
Concept of bridging loans:
Bridging loans are the short-term loans, which helps in filling the gap of the amount between the sale and purchase amount of someone’s existing property and the property, he is going to acquire. For example, Mr. Thomas decided to buy a new home at the most beautiful location of the city and then to pay for it, he sold his existing home, which is cheaper than the new one. Now, if Mr. Thomas faces any of the financial stressed condition, then he can contact to the online lenders by researching on the internet.
Eligibility Criteria of Bridging Loans:
A person, who is the citizen of the UK, completed the age of 18 and started earning an average income can apply for these loans with the standard credit scores. The income can belong to the full-time or part-time job and even a newly established business income is acceptable, if it is stable to the average extent.
Whereas, some online lending companies are open to the people, who have average credit ratings or low credit scores to apply for such loans. It is because they can trust a person, who possesses a home and earns a good income, as these are working more than their risks.
Ultimate features of bridging loans, if applying from direct lending institutions:
- Simple Processes:
The online loans are simple to avail due to the overall presence of the online platform. Some of them are not even considering the credit verifications and documentation by understanding the earnest needs of the loan candidates.
- Short term loans:
These are short term loans, which means a borrower can discharge from the liability of paying it in a short period.
- Immediate Approvals:
The small loans, which are applied in an emergency, are considered first by the financial representatives. The terms and conditions on these loans are easy, like no credit check sometimes and no documentation too. The processes work faster with the help of some direct lenders and this is why, there are immediate approvals in the most cases of online lending.
- Calculation Tool:
Now, you do not need to go to the financial experts for calculating your cost of loans as many direct lenders have started presenting bridging loans calculator on the websites of them. With the help of it, you can save the fee of the experts and the cost of the loan lower downs automatically.
- Flexible Payment Criteria:
Many of the risk taking online lending institutions are offering flexible payment criteria to the residents of the UK. It is because people, who get delay in salary from the end of the employer, fail to repay on time and then their credit profiles taint with the bad credit scores. Now, pre notifying the lender about such happening at once is allowed with many direct lending companies. Ensure before applying for a loan from any online lender, either it is allowing this feature or not.
Are Bridging loans cheap or costly?
The cost of bridging loans is high as these are provided in the emergency situations to the borrowers with the easy procedures like no demand of guarantor, if the borrower does not have.
Alert at the end:
Being a rational borrower, do not apply for any lending policy without doing the research on the lending institution for the purpose of not getting trapped by the frauds.
Emma Anderson is a highly accomplished Editor-in-Chief at 24cashfinances, renowned for her exceptional expertise in the finance industry. Holding degrees in Finance and Marketing, Emma has developed a deep understanding of the financial landscape, particularly when it comes to loans and personal finance.
Emma’s professional journey began as a financial analyst, where she gained hands-on experience in evaluating market trends and analysing investment opportunities. Emma’s enthusiasm for writing and her goal to educate and give individuals a voice motivated her to move into financial journalism. Her work has been published in popular magazines and she has produced thought-provoking pieces on various financial topics.