Certainly, you would not like to stop the ongoing construction works on a project just because of sudden shortfall of cash. Loans available in the UK loan market can help you in such a situation by providing timely financial assistance, if you have met some tough financial conditions.
These loans are made available for a variety of purposes relating to your commercial projects and include converting the land or semi-developed properties to high end ones such as a hotel into residential flats. Or you can use the loan for extension on any property like an apartment, hotel or flat.
The bridging loan allows you to borrow funds till you get the money from own sources. You are likely to get some payments, which are currently delayed for some reasons and as soon as you get the payment you can repay the loan amount. Till that time you can use the loan amount and finance the construction work.
But, as greater funds are required in construction business, a bridging loan purpose comes against your commercial or residential property as security. The loan amount depends upon the market value of the property and the total outstanding dues of the borrower. The loan approval is fast comes within a day or two. These are short term loans and generally approved for 6-12 months.
Interest rate on bridging loans goes higher, despite pledging your property as security. It is mainly because of short repayment tenure. But, if your credit history is excellent or good, then you are likely to get the loan at a little lower rate compared to the bad credit borrowers. For Bad credit borrowers, the terms and conditions are little tougher but availability is a must.
A history of late payments, defaults, arrears, CCJs makes the loan availability a little difficult for the borrowers. Still, if you are willing to make further high interest payment, then finding a lender is not a tough task in the UK competitive loan market place. For competitive rates on bridging loan, you should first apply for obligation free rate quotes of the lenders, whom you can locate on Internet. Make a thorough comparison of the lenders to find a suitable loan deal. Usually, online lenders offer the loans at competitive rates and process the loan very fast. Ensure to make timely repayments for avoiding any adverse financial situation and debt piling. Regular repayment of loan amount makes your credit score good.