There are so many types of loan available presently, among which the bridging loan is also a type of loan. The bridging loan is a short term loan type which can be taken only for a period of 2 weeks to maximum of 3 years. The bridging loan is also termed as caveat loan or swing loan. The bridge loan is normally provided to an individual to bridge the permanent loan. When comparing to other types of loan facilities the bridging loan is a costliest or expensive loan.
Normally the Bridging loans have higher rate of interest than the conventional loans. The points and other costs accounted in the bridging loan are also higher and various fees will be deducted from the customer like for example equity participation fee. But the positive aspect of the bridging loan is that it will be arranged quickly and the requirement of documents for data purpose is also little only.
Most of the time the Bridging loans are used for commercial purpose like real estates, purchasing a property, quick closure of any business, need of fast selling or buying of any property, etc. The main purpose for which most of the people obtain the bridging loan is to get the long term financing by adding a short term opportunity.
The bridging loan is similar like the hard money loan. Yes! Both the loan types are non-standard, short term, unusual, needed in emergency conditions. The major differences in these two forms of loans is that the hard money normally depends on the lending source which is usually an individual or a private company, or an investment pool which is not a bank setup, whereas the bridging loan mainly depends on the duration of the loan.
Thus getting the bridging loans UK is much quick and easy but getting the benefits is solely depends on how you are going to use it.