Bridging finance application tips

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Tips of bridging finance

If you are going to apply for bridging finance from a bank, a building society, a loan broker or direct from a principle lender, then here are a few tips to make sure your application goes as smooth and as quickly as possible. Again, like our general guidelines, different finance institutes that offer bridging finance may request differing information to process a bridging finance application, so it would still be advisable to read that specific companies or lenders actual small print to confirm that you have everything in order when applying for bridging finance.

Bridging finance application information requested

• Full name
• Full address
• Daytime telephone number
• Evening telephone number
• Address of the property to be used as security
• The estimated property current value
• The outstanding mortgage
• Any other loans secured by this property
• Employment status
• Any second property value

The above information would be perfect for any finance or loan company to start processing your application. You could also give them confirmation that it would be okay to conduct a credit search on you and your current address.

There is no need to divulge what the purpose of the loan would be, and we highly recommend not to in the first instance.

To speed up the process you could work out roughly, if you qualify for finance the maximum you could borrow.

This is done by taking the current market value of the property you are going to using as security minus any outstanding mortgage or loans on the property. If work on around sixty to eighty percent of that figure, you are in the general ball park of the amount that you could borrow in the form of a bridging loan.

MAKE SURE THAT YOU CAN AFFORD TO MAKE THE INTEREST REPAYMENTS OR BE ABLE TO CLEAR THE FULL AMOUNT IN ONE HIT WITHIN TWELVE MONTHS.

Bridging finance is only a cost effective way of borrowing if you repay the amount in full within one year.

Please be aware that your home or property could be at risk of repossession if you do not keep up or clear in full any loans or finance that the property was used as security against.