Bridging loans work quicker than standard mortgage services. They can deliver you money within days. Whereas receiving the same amount of cash would take several months if you apply for the traditional mortgage service.
According to a study, chain break finance is one of the driving factors for obtaining bridging loans. Twenty per cent of all property deals in the fourth quarter of 2020 involved bridging loans. With a large number of property transactions occurring, many stakeholders were quitting the purchase process. That is why the clients received the bridging loan to make payments for the parties that left the deals.
One of the famous reasons to utilize the bridging loan is enhancing a property for sales or rental purposes. Moreover, some kinds of property renovation work might be outside the scope of conventional mortgage lending terms and conditions. That is where the bridging loan is helpful. According to experts, thirty-three per cent of bridging loans in the first quarter of 2021 were for business and investment purposes.