Bridging Finance Application Tips
These loans are available for UK residents over the age of 18. A bridging finance application can often be filled out on line. This type of loan is an advance that provides immediate funding for those who are purchasing a new home while their current home sale is not yet finalized. It is meant to pick up the slack in this delay; this type of loan is a short-term loan, usually meant to be paid back within a year.
The paperwork may be filled out easily before going to the bank or finance center. Here are some tips to follow when filling out the bridging finance application.
- Gather all the personal information you will possibly need. This includes your personal information, a current bank statement, your employment record and your Inland Revenue taxes paid for the past year. Although not all of this information may be necessary in your situation, it is best practice to have these items available just in case. If you are asked for them they will be readily available. The mistake most people make is that they don’t bring enough information with them to fill out the application. This means that, when other items are needed, they need to stop the application process and return on another day, after they locate the items.
- For your bridging finance application, bring a complete copy of the sales agreements for both the property you are purchasing and the property you are selling. Bring a copy of the advertising copy for the home you are selling. It usually helps if you can photocopy the documents in advance. If more than one copy is required then it will save time and be very much appreciated by the advisor handling your application.
- Have the appraisal of the new home ready. Make sure that you know the particulars, such as the type of home, the year it was built, the size of the rooms, etc. This will be helpful to the lender. A picture is also quite helpful.
- Be ready to explain anything questionable on your record or about the homes. Don’t try to hide anything. It will surely be found out and delay the process. this is one area where honesty is the best policy. Present all the facts in a very straightforward way and you will be rewarded with a speedy loan approval with the minimum delay.
- If your current home does not yet have a contract, be ready to explain the length of time on the market, the price compared to other similar homes in your area and the market value of other homes in your area. This may be an important factor in your bridging finance application, because if you cannot sell your current home easily you may get into trouble paying the loan back. Ensure the lender that the price you will get for your home will cover your loan.
Follow these top 5 tips and you should have little or no trouble progressing your Bridging Finance Application, no matter how complex the application form looks at first!