Own house gives the ultimate and exclusive relaxation, as you can renovate it from time to time as per your choices. Some people have their own home but they do not like the location or due to the shift in job, they need to purchase another house. For middle-class families, it may not possible to buy a new house without selling the previous one. This is why they sell their previous home and buy a new one. Some people might not fulfill all their desires with the sellout of old home and then, they need bridging loans to understand the concept of it, read the below mentioned content.
Concept of bridging loans:
Money lent by the bank or financial institution to the borrowers in interval between two transactions are called bridging loans, mainly for the acquirement of house and selling of another house. These are short term loans, which are supported with the presence of a collateral (property) for which the loan is borrowed. In the UK, any native can get such loans with the support of the collateral from various financial institutions. In case, the person has any past credit mistake, then various lending institutions may close their doors for him. To fill the small financial gap between the available amount from the selling of a property and the amount of home to purchase, some direct lending institutions allow the borrowers to get loans by ignoring their past credit controversies.
Which mode is suitable for applying bridging loans?
There are two modes to apply for bridging loans, offline and online. The online mode is convenient, as one does not need to go out and do efforts. Even if the person wants to ignore the documentation and guarantor in the overall procedure, then he can do that as many online lenders are providing the subprime policy benefits like no need of guarantor, no restriction on the credit scores and no compulsory lengthy documentation.
The offline mode might be trusted by most of the borrowers, if they know it for many years then they consider it with the good credit history and the presence of all necessary documents.
To apply for bridging loans online, a borrower needs to search for the lender on the internet and then fill an online application form, available on the website of the lender. After that, the borrower needs to submit that credit application and then it is the responsibility of the lender to sanction the application.
Features of bridging loans through online mode:
As above discussed, some direct lenders are providing the loans on the subprime policies like there is no need of guarantor and no mandatory credit check. With the help of such policies, any person can get such loans in the UK, who has the citizenship and has turned 18 or above.
The procedure of these loans is simple because of the overall online procedure and the easy terms and conditions like no lengthy paperwork and no mandatory credit check.
No interference of broker:
The direct lenders are open for the direct contacts by the borrowers to the lenders. It is not mandatory for them to find any broker to meet the requirements of the lender. Just by filling an online application and submitting it, the lender can approve the application if the collateral is present, in case of bridging loans.
High loan to value ratio:
Loan to value ratio means the determination of the amount for the approval and the value of collateral in comparison of that. Some direct lending companies are allowing the borrowers to deposit low loan to value and get the high loan to value ratio.
As the terms and conditions are easy, the approvals can also come on the immediate basis due to no lengthy documentation covered into the procedure. People in the emergency need of the money to finalise their property can get advantage of such features.
The borrowers are suggested to do research on the lending company before applying for a loan to protect them from any misunderstanding about terms and conditions or frauds. Another thing is reimburse the money on time to maintain your credit career.