In short Yes, it is generally easier to obtain a bridging loan than a traditional mortgage for a number of reasons. We’ve listed some of the key points below:
Firstly, bridging lenders are typically more focused on the specific deal, exit strategy, and security being used to secure the loan, rather than the borrower’s financial background. This means that they are often more willing to lend to borrowers who may not meet the strict criteria of traditional lenders, such as those with a poor credit history or those who are self-employed.
Secondly, bridging loans are usually provided for a short-term period, often up to 12 months, and the focus is on the borrower’s ability to repay the loan based on the value of the property used as security. This means that lenders may be more willing to overlook certain factors that traditional lenders might consider to be red flags, such as a lack of employment history or irregular income.
Lastly, the application process for a bridging loan is often faster and has less red tape than that of a traditional mortgage. Bridging lenders are typically able to make quick decisions and can often provide funding within a matter of days or weeks, whereas traditional lenders may take several weeks or months to process an application.
It is important to note, however, that while bridging loans can be easier to obtain than traditional mortgages, they are still a form of secured lending and should not be taken out lightly.
Borrowers should carefully consider the costs and risks involved and seek professional advice before taking out a bridging loan.
We invite you to get in touch with our experienced bridging finance brokers who can evaluate your circumstances, understand your needs and advise you on the best solution.
To discuss a bridging loan, touch with us on 020 3645 4322 or use the form on our contact page to request a call back.