Oxstones Investment Club™Used mainly in property transactions, a bridging loan is a type of short term finance. This is the funding option that should be used to “bridge” the gap between transactions. For example when a debt will be due before the line of credit becomes available. Pretty much any kind of high pressure circumstance that can be solved with a quick cash injection can use a short term loan.
Who would need a Bridging Loan?
Anyone who is trying to complete a property purchase by selling off their existing home to fund the new one will find these loans perfectly suited to them. Other than people moving home, it is useful for quickly selling on a house after renovating it, or for quickly purchasing a property at auction.
How Does It Work?
You can borrow the amount of money you need to cover all your expenses and receive it quickly, though at a higher rate of interest than normal. Be very careful when applying for one of these loans. Without getting the right advice and working with the right lender, the loan will not help very much.
There are many bridging lenders active in the market. Understanding the full cost of the loan is very important. You need to know about the rates of interest and any potential administration fees that some loan providers charge. Just like any other type of borrowing, take the risks into consideration.
Taking out one of these loans can mean rates of up to 1.5% each month, for a total of 18% for a year. Though, in most cases you would have repaid the loan well before a year. By shopping around you can actually find much lower rates, and potentially as little as half of the numbers mentioned above.
Where can you get a fast bridging loan?
The Banks and building societies on the high street used to be the main way people applied for loans. But in this post credit crunch world, specialised online lenders are becoming more mainstream and widely adopted.
For bridging finance, you should find a site specialising in short term loans. A top ratesUKlender can be found at FinanceMyHouse. This site will help you find a bridge loan that is appropriate for your bridging needs. This is very important, because an unsuitable loan will end up costing you dearly.
Fill in the short online form to get started. After entering your personal and contact details, choose how much you need and for how long. The finalised terms of your loan will be tailored specifically for you. Then all you have to do is click on the Apply Now button. As speed of the utmost importance, you will hear back in around 30 minutes or less the results of the decision.
These loans can be truly invaluable when it comes to facilitating the purchase of a property. So if you have an immediate need for financing, take out a short term loan today and close that cash gap.
Tags: advice to borrowers, bridge loan lenders, bridge loans, buying property at auction, Fast Bridging Loans, financemyhouse.net, lending, loans, real estate loans, short term loans, uklender