Bridging Loan Lending Criteria
Getting a bridge loan is exciting, as it will allow you to buy the home that you really want while you are still waiting to sell yours. Thanks to bridge loans
, homeowners no longer have to worry about another person buying the home of their dreams, as this type of financing makes it very easy to be able to pay for a new home even while your current home is still on the market. With so many different lenders available, it makes sense that there will be varying bridge loan criteria, but having a general idea of what to expect is a good idea, as it will allow you to make an informed decision about the loan you are going to take out.
Criteria for Bridging Loan
Most lenders have the same criteria when it comes to the amount that they are willing to lend borrowers and the terms of the loan. In this case, there is really no upper limit to how much can be lent, as it all depends on the value of your property as well as your income and credit score. While lenders will offer loans of different terms, they are generally short-term loans and do not extend longer than 12 months. Some lenders use different bridging loan criteria and will offer longer terms, but the rates on these are often higher and it will take better credentials to be approved for one of them.
Consider the Property
When thinking about bridging loan criteria UK, you need to consider the type of property that you have as well as its value, as this is what will be used as security for the loan. Most lenders are happy to lend on houses and bungalows, while others are comfortable using flats, shops, farmland, pugs, and offices for collateral. In this case, the criteria for bridging loan can vary widely, so you will have to talk to your lender about whether or not your property can be used for a loan.
There are other bridge loan criteria that your lender will want to consider, including the condition of your property, its location, and the exit plan for the loan. By carefully considering all criteria for bridging loan, a great lender can make provide their customers with the money they need while still protecting themselves in case of a default. This allows them to offer great rates and provide the money that their customers need.