Understanding the Different Types of Bridging Loans: Regulated vs. Unregulated
Unregulated or Regulated Bridging Loans, which do you need?
Bridging loans are a type of short-term financing that allows individuals or businesses to borrow money quickly and easily in order to bridge a financial gap. These loans are typically used to fund the purchase of a property before more traditional forms of financing, such as a mortgage, can be secured.
There are two types of bridging loans: regulated and unregulated.
Regulated Bridging Loans
Regulated bridging loans are overseen by the Financial Conduct Authority (FCA), and are subject to certain rules and regulations. These loans are typically secured against a property that the borrower has previously lived in, currently resides in, or will live in in the future.
Unregulated Bridging Loans
Unregulated bridging loans, on the other hand, are not subject to the same level of oversight by the FCA. These loans can be secured against a wider range of property types, including buy-to-let properties, property developments, and commercial property.
One key difference between regulated and unregulated bridging loans is the affordability assessment process. For regulated loans, lenders are required to assess the borrower's ability to afford the monthly loan repayments. This means looking at income streams and ensuring that there is enough of a margin to comfortably make the loan repayments.
Unregulated bridging loans, on the other hand, do not have to undergo the same level of affordability assessment. As a result, they may be more suitable for borrowers with more complex financial circumstances, or those who need to secure financing quickly.
Willow Private Finance is a specialist broker that offers both regulated and unregulated bridging loans. Our team of experts can help you secure the right type of loan for your needs, regardless of the complexity of your circumstances or the speed at which you need to secure financing. We have access to a large network of lenders, and can help you navigate the loan application, approval, and finalisation process with ease. Contact us today to learn more.
Who Are Willow Private Finance?
Willow Private Finance is a specialist mortgage brokerage that offers professional financial advice and assistance to clients seeking to secure a mortgage or refinance their existing mortgage. The company is dedicated to providing its clients with personalized and tailor-made solutions to meet their specific financial needs and goals.
With a team of highly qualified and experienced mortgage advisors, Willow Private Finance is able to offer expert advice and guidance on a wide range of mortgage products and options, including first-time buyer mortgages, buy-to-let mortgages, Commercial mortgages, Bridging finance, Lombard lending, and Development finance. The company also offers a range of services to help clients navigate the complex and often confusing process of securing a mortgage, including assistance with mortgage application and documentation, as well as ongoing support throughout the mortgage process.
In addition to its mortgage brokerage services, Willow Private Finance also offers a range of other financial services, including protection insurance and equity release.. The company's goal is to provide its clients with a comprehensive and holistic approach to finance and management, helping them to achieve their financial goals and secure their financial future.
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