Richard Butler Creagh Shares Pointers before Applying for a Bridging Loan

Welcome to the Richard Butler Creagh blog.  Richard Butler-Creagh founded Henley Finance in 2013. After a successful career in property development, he understood the needs of the professional and their requirements in short-term bridging finance and devised a way that they could be better met in Henley Finance. Bridging loans are short-term loans, usually high-interest ones too, that can be used to get access to funds quickly. Most clients that take out this type of loan often have a need to get their hands on funds quite quickly. It is most useful for people involved in real estate especially in instances when they may need some funds to complete the purchase of a real estate and other property. Below are some tips that you should remember if you are considering the possibility of taking advantage of a bridging loan.

Know the costs involved

While it may sound simple, always make sure to be clear when it comes to the full amount of the loan and the specific portion of that amount that will have to go to interest rates and fees. It is also important to remember that the short-term loan is attached to high fees and interest rates. Among the fees that you are likely going to need to cover when taking advantage of this loan include the facility fee, the exit or prepayment fee, valuation fee, the legal fees, legal fees for the lender along with disbursements, fees for the broker, as well as bank transfer fees.

Find out about the security that is being given too

One of the most common conditions that you as a borrower will be asked for when getting the loan is to provide a certain security or leverage to the lender. This usually comes in the form of a charge against the property involved. There are also other types of security that can be used for this purpose. Make it a point to comply with the conditions attached to the loan though to make sure that there will b no unnecessary legal implications as a result.

Know about the pre-loan requirement

If you want to get a much better chance at getting approved for the loan, then be sure to know about the pre-loan requirements first. Different loan providers have their own different standards as far as pre-loan inquiries are involved. Do due diligence to make sure that you have all the documents needed. Be aware that the costs are likely going to be yours to shoulder so, be prepared for that. Make sure to provide the lender with the necessary explanation too on how you are going to fully repay the amount that you are borrowing. Ensure that you will have sufficient funds that should help you do this.

Timing is important too

While it is known for loans like these to be expedited at a much faster rate, they may take longer than what you expected if you are unable to do things the right way. This is also why it is highly suggested that you should find the right solicitor to guide you along the way, one who knows all the legalities involved and one who has been processing these kinds of loans before will be able to extend to you some very effective practical tips to speed up your application.

Watch the video below to learn more.

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