With covid-19 on its way out and with the talk of the property market taking a hit, will come opportunities to obtain cheaper properties.
It is crucial for avid investors to raise money fast, one option is bridging finance.
Below is a quick guide on how to get bridging loans to buy property in London.
Competition for buying a property in and around London is cutthroat. It means that when you eventually come across an excellent investment.
opportunity to purchase an ideal home, you must move fast.
The hard part is obtaining the right funding quickly when buying a property in the capital.
Is it a challenge? In such scenarios, a bridging loan comes in handy, letting you quickly raise the funds you need to make a property purchase, so you don’t miss out on any good opportunities.
Most people are familiar with the term “bridging loans” but don’t know how they work for buying a property in London. So, let’s begin.
How Bridging Loans Work to Buy a Property?
Although bridging loans (or bridging finance) work a lot like buying a property with a mortgage, there are some differences.
Similar to a mortgage, they are generally secured against the property you want to purchase; however, they can even be secured against an additional property as well, allowing you to borrow more loan to value or getting a better interest rate.
The key features of bridging loans:
- faster, so they can be arranged within days
- No credit history required
- No income required
- Security required
How to Obtain Bridging Loans to Buy a Property in London?
The process of getting a bridging loan is truly no different from purchasing a property with mortgages, and it should be much faster. To get bridging loans in London, you can contact private lenders or banks or dedicated subsidiaries of high street banks.
All these options are generally accessible through specialist finance brokers.
In comparison to mortgages, the lending norm for bridging finance is more flexible and hassle-free. Which means that challenges such as non-UK residency or complicated income streams will not necessarily be a trouble as they could be for a high street mortgage.
How to Quality for Bridging Loans?
Qualifying for bridging loans boils down to the exit strategy. If yours is workable, that’s half the fight. From this phase, you only need to worry about how to secure the best rates, and that’s the scenario of fulfilling the eligibility requirements of as many lenders as you can.
Obtaining the best bridging loan rates in London is possible if you can approach many lenders and compare the rates and that you are a low-risk borrower with an accomplishable exit plan for the money.
Lastly, when looking for bridging loan lenders in London online, make sure to compare at least three or five options to hit the best deal that meets your unique requirements and circumstances!
For more information, guide and advice and the best bridging options or alternatives to bridging loans, contact Property Finance Partners