Regulated Bridging Loans
Regulated bridging loans are short term loans that are used to access fast finance and which are secured by a residential property you currently live in or are going to live in. For businesses, these loans are secured by a property your business currently occupies or intends to after you complete the purchase or renovation.
Regulated bridging loans are taken for the same reasons as other bridging loans. The difference is that you can’t secure them against an investment property or one you currently or don’t intend to occupy yourself. Where you have to lease out part of the property, you have to occupy at least 40% of it to qualify for regulated bridging finance.
What sets regulated bridging loans apart from unregulated loans is that there are restrictions to who and how they are administered. These restrictions are set by the Financial Conduct Authority. Part of the restrictions is that property owners who do not own outright the property they are using as security cannot apply for regulated bridging loans. It could be because they have yet to pay off their mortgage.
The reason for the FCA’s oversight is to control consumers’ debt burden and to ensure order and predictability of the financial markets. Before it can extend a regulated bridging loan, the lending institution must ensure the borrower can prove they will be occupying the property themselves.
The consequence of regulation is that regulated bridging loans aren’t available from every bridging finance provider.
Who Can Apply For Regulated Bridging Loans?
For residential customers, as with commercial ones, anyone who is looking for bridging finance can apply for a regulated bridging loan. Businesses can use these loans to upgrade the property itself, for expansion purposes, as well as to settle tax arrears or to fund their payroll.
Residential customers also take out regulated bridging loans for a variety of options. It could be to fund an extension to your home, to pay for much needed roof or plumbing repairs, or even to add a gazebo. The possibilities are limitless.
Benefits Of Regulated Bridging Loans
Choosing regulated bridging loans to release equity from a property you already own comes with some advantages. It is for these attractions that some homeowners would choose these loans over remortgaging their houses to raise money.
Speed Of Access
Like other bridging loans we offer at Galaxy Finance, regulated bridging loans can be accessed on short notice, meaning the application process is very short. These loans can be approved and released very quickly, at times on the spot. If your need for cash is very urgent, this type of loan can make all the difference.
Regulated bridging loans also benefit from terms that are much more flexible than standard mortgage loans from banks, whose applications can be refused for sometimes minor things. Where you have been turned down by your bank, a regulated bridging loan would open an even more flexible funding option.
The flexible application terms for regulated loans also mean that people with poor credit can get often critical bridging finance. The flexibility extends to the freedom with which you can use the loan, with the lender only too concerned with the property’s value and your exit strategy for the loan.
Apply For A Regulated Bridging Loan Today
Regulated bridging loans are a viable and safe way to raise quick finance that you can use to upgrade your property. They are also useful for releasing equity from a property you own to use as business capital. They can be a lifesaver where your bank isn’t too excited about extending credit to you.
At Galaxy Finance, we offer a range of bridging finance solutions for businesses and residential customers. Contact us today to discuss your specific needs.
Friendly Lending Terms
As long as the borrower can raise collateral and their repayment and exit plans are solid, there is usually no reason to refuse funding, even if you have poor credit. We believe borrowers will meet their loan repayment obligations if lenders worked harder to craft lending terms that please both parties. Lending terms mustn’t discourage borrowing, but they must make repayment easier and flexible.
Attentive Customer Support
To respond to customer needs and queries, at Galaxy Finance we believe customer support teams must be trained in the art of listening attentively. When you listen, without any prejudgements, customers will give you all the market intelligence you need to innovate products that truly meet them at their points of need. This is why we we follow up and make good on every customer query and inquiry.
We appreciate that we are setting out to serve clients whose poor credit may be the reason why they have failed to get loans from banks. But instead of looking at what might disqualify a bridging loan applicant from borrowing successfully, we look for what counts in their favor. We will only grow our appeal and succeed if we’re inclusive and sensitive to modern society’s growing diversity.