Before you get a bridging loan, you need to decide if a bridging loan is the best option for you.Bridging loans exist to help people complete the purchase of a property before selling their current home by offering them funds at a high-interest rate.
The first step to take when you have decided that a bridging loan is the best option for you is to get into contact with a broker, who’ll schedule some type of consultation. The consultation will help to highlight what you want the loan for, how long you want it for and how much you can repay a month.
After you have spoken to your broker and you have worked out the details, the broker will go to some lenders. This will then after a short amount of time you will have a quote. The quote will often have everything you need to know on it such as Interest rates, fees, the value of the loan and terms and conditions.
The next step is the valuation and legal work. A valuer will visit the property to write a report on the value to make sure that covers the amount of the loan. This is not always necessary if there has been a recent survey or valuation on the property. Once the valuation has been completed then the solicitor can start their legal work. This includes proof of identity and financial documents.
Once all the previous steps are completed then the funds can be released. This can be transferred to your bank or if the loan is used to purchase property can be given to the seller of the property.
This could take up to a few days or even a few weeks depending on circumstances.
Choosing a lender
The first thing you want to think about when deciding to get a loan it is choosing the right lender. The most factor here is a lender that you can trust and has good credibility. Response time is also a key factor in choosing a lender – the last thing you are going to want is a lender that takes their time to respond to you.
Overall you want to make sure you are making the right decision when getting a loan as it is a big commitment. This is a guide on how the bridging loan process works. All situations are different so bear that in mind as there may be complications that arise during the process. Hence, why you want to make sure you are going with the right lender that will give you the best possible outcome.
If you are looking to arrange the bridging loan, we would be more than happy to help to make sure that you get the best service in the most suitable time frame.
Contact us on 01245 850165 or visit us at https://active.mortgage/
We are a credit broker, not a lender. As a mortgage is secured against your property it could be repossessed if you do not keep up with your mortgage terms.
