With Covid-19 becoming less of a threat, and the reality of the property market taking a hit will result in many more opportunities to obtain cheaper properties.
Avid investors must raise money fast; one option to do so 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 extremely high. It means that when you eventually come across an excellent investment opportunity to purchase an ideal home, you must move fast.
The hardest part is obtaining the right funding and quickly when buying a property in the capital of the UK.
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.
Most people are familiar with the term “bridging loans” but don’t know how they work in relation to 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 a larger sum of money or get 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?
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 a mortgage, but it should be much faster. To get bridging loans in London, you should contact private lenders, 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 a lot more flexible and hassle-free. This means that challenges such as non-UK residency or complicated income streams will not necessarily be a trouble for you as they might be for a high street mortgage.
How To Qualify For Bridging Loans?
Qualifying for a bridging loan boils down to your exit strategy. If it is workable, that’s half the fight. From this point, you only need to worry about how to secure the best rates, and that’s done by 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. It also helps if 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 to five options to find 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