kw: Peer to Peer lending, Kuflink, bridging loan
P2P lending provides a great way to invest in the market with a bridging loan. It allows you to buy a property. So you don’t miss a potential opportunity when it knocks on your door. In addition, P2P bridging loans will enable you to take advantage of the lower investment risk in the market. To help new people in the market, we have created a guide that will help them with a basic understanding of getting started. The bridging loans are typically provided by P2P lending platforms, If you need more information about commercial leasing please reach out to P&B Law.
Expert’s Opinion about Bridging Loans Market in the UK
Bridging loans are short-period loans spanning over one to six months in time-length. The borrower receives them on the first or second charge terms. They secure bridging loans with a property as collateral. The platforms consider them to be commonly non-status. Also, they do not require any credit checks or proof of income.
The bridging loan amount can be a hundred per cent of the property’s purchase price. Or almost around seventy per cent of the property’s value. The property can be:
- A home.
- Investment real estate.
- Commercial real estate, or
- A land that you purchased previously.
Assuming your property has an adequate amount of equity, the loan interest and other charges can be increased and established at the end of the loan period. Bridging loan interest rates represent the lender’s risk and the Loan To Value (LTV) ratio of the loan for the property. The interest rate rises as the LTV rises.
You can get bridging loans from high street banks, private finance firms, or high ranking P2P lending platforms like Kuflink. P2P lending platforms have lesser concerns about previously low credit scores and earning proof. As a result, the high street banks are more strict in lending. Oppositely, peer to peer lending websites are generally accessible to everyone. Consumers can join them to lend or borrow cash.
Platforms typically grant a bridging loan due to their urgent nature. Because people require funds fast. Thus, they can get it in some days. Bridging loans are helpful for a variety of reasons, including:
1. Purchasing real estate at an auction with a completion period within twenty-eight days.
2. Purchasing real estate at a concession where the buyer searches for a quick sale.
3. To carry out the house purchase assuming your residential house is still unsold.
4. To avoid selling a house in the name of another buyer.
The Costs of Receiving Bridging Loans
- The costs of receiving a bridging loan are comparatively high and might require some or all of these aspects:
- The cost of an RICS valuation survey will depend on the value that the surveyor assigns to your property. The borrower should pay the price of the valuation survey according to the real estate’s market value. The survey agents charge a higher fee for the valuation of commercial properties. But surveys of residential properties aren’t as expensive because they’re more location-specific, making their valuation more affordable. Also, the survey rates may vary for different localities.
- The borrowers will have to cover their legal expenses and the lender’s legal charges.
- The platform typically charges a service fee ranging between 1% and 2% of the loan amount to grant the loan. That cannot exceed the property’s maximum LTV (Loan To Value) ratio. After the loan repayment, there might also be exit charges. Exit charges or exit fees are commonly one month’s interest.
- The loan may have a minimum period, ranging from 3 months for some loans to 1 day for others. Moreover, it is not an issue if the bridging finance is for three months or more.
Many of these expenses can be prevented or minimized by selecting the best loan for your needs.
Bridging Loan Application
Bridging loans can be obtained from either conventional banks or Peer to Peer lending platforms. Most of the online lending platforms accept applications from the consumers and serve as brokers. But conventional bank rates are higher than those of P2P lenders. Moreover, the application procedure is slow and can take upto six weeks or more. Oppositely, P2P lending platforms can facilitate you to withdraw funds in a short time, assuming an approved valuation is available.
Suppose Peer to Peer lending is your preferred way of receiving bridging loans, most platforms will provide you with the necessary bridging finance. For example, you can submit the applications online directly.
You can get P2P loans from many websites designed for this purpose. Kuflink is one such high profile web platform. They will match you to the most appropriate lender according to your requirements. The platform will connect you with the lender by evaluating your specific circumstances. It would help if you remembered that the minimum interest rate might be highly affordable for your loan period.
Maximum loan sum, least term period, and exit charges at the end of the loan can all impact this. But the loans can be cost-effective when considering all expenses in the end. That is why it is beneficial to reach out to the Peer to Peer lending platform, which will save you cash even if they take fees for facilitation services.
The Bottom Lines of the Post
So, if you’re in the market for a bridging loan and want to take advantage of the lower risk associated with P2P lending, Kuflink would be happy to help. Their expert team can connect you with a reputable lender to provide you with the funds you need to buy that property that just popped up on your business plan. Have questions about how P2P bridging loans work? They’ve got answers; contact them today and let them show you how easy it is to get started by investing in the market.
Bridging loans can be a great solution when you need money quickly and cannot get a traditional loan from a bank. They are typically used to finance the purchase of a new property before the sale of an existing one goes through. Peer to Peer lending platforms offer bridging loans at lower interest rates than traditional lenders, and no credit check is required. So assuming you need some quick cash, consider borrowing against your property with a bridging loan from a Peer to Peer lender.
