Ultimate Guide to the Bridging Loan Market

Nowadays, a lot of people are investing in the property market. If you are new to bridging loans, then this guide will help you understand bridging finance.

UK Bridging Loans

bridging financeAs you probably know, these are short-term loans with repayment duration of between 1 and 12 months. Also, they are secured against the second or first charge basis. The fact that they are secured against property means that they are non-status with no proof of income or credit checks required. It is possible to get a loan that is 100% of the property value. However, in most cases, you will be financed with 70% of the property value. The property can be an investment, land, commercial, or residential.

If you have adequate equity in the property, then the loan interest and other associated fees can be settled or rolled up at the end of the loan term. The interest rates for the bridging loans can reflect the risk of lenders against the property. Thus, the higher the loan to value, the higher the interest rate you will pay.

You can arrange bridging loans through banks, specialist brokers, and private finance companies. Usually, banks are conservative when it comes to lending whereas brokers are quick and are not concerned with the borrower’s proof of earnings and previous credit issues.

Reasons to Apply for Bridging Loans

The idea behind bridging loans is based on the speed at which money is required. For instance, these loans can be approved within a few days. The following are the reasons or uses of bridging loans:

  • Purchasing property at an auctionbridging loans
  • Buying undervalued property where vendors want to make a quick sale
  • Stopping house repossession
  • Raise money for the legal settlements
  • Pay taxes


The common myth about this type of financing is that it is expensive. This makes borrowers confused about the payments. The truth is that with a bridging loan, the borrower is aware of the outstanding balance and the redemption value. Also, there are no upfront fees and the interest rates are low. In most cases, the rates are based on your application, speed of completion, and client status. A valuation is needed and paid for by the borrower. Ideally, you will be required to pay a completion fee of about 1% of the loan amount.…

How To Find A Lending Company That Can Provide You With A Loan?

With the constant rise of cost of living in almost all places in the world, people sometimes find it hard to cope up. If you are depending on your monthly paycheck, you have to work on a budget and stick to it. This is to ensure that you won’t get short, and you will be able to get by until the next payday comes. However, there are times when emergency situations or urgent needs come in the way. And these unexpected circumstances, of course, could not wait until you receive your next salary. They have to be addressed immediately. Therefore, you have to find ways to resolve them the soonest possible time.

You can go online to see a list and comparison of some of the lending companies that you may contact to help you with your financial needs. You will also see which one of them is the quickest in providing you with the cash that you need.

Consumer Loans

holding cashConsumer loans are debts that are provided to individuals who are seeking for financial assistance. A certain amount of money is lent to a borrower with an interest rate that needs to be paid on top of the principal amount. In addition to this, terms of payment are also provided. There are many types of consumer loans that you can avail of depending on the intended purpose. If you are aiming to buy a house, you may apply for a house loan. The same way if you want to get a car, you can take advantage of a car or auto loan. There are also business loans, salary loans, personal loans, and many more.

How to get a loan?

There are many lending companies that are offering their assistance if you are looking into taking out a loan. Most banks, if not all, are providing the same services. However, these banks and money lenders may differ when it comes to the terms and conditions as well as the amount of money that they can lend. The interest rate is also one thing that you need to look at when you are applying for a loan.

laptop on tableLoan applications can already be filed online. You just have to be patient in searching in order for you to get the best deal. If you visit the website, you will be able to compare some lending companies. You will have an idea of the different rates, loanable amount, as well as how long it would take them to process and approve your application.…

What You Should Know About Reverse Mortgage

A reverse mortgage is one of the terms many people have not heard before. The majority of them are confused as they are used to just the mortgage. Salespeople will tell you that you qualify for reverse mortgage. In fact, they use the term as it is something magical that will solve all your financial problems and limitations. It is important to understand what it is. Moreover, you need to know its negative and positive implications before you make a decision.

Things to know

A reverse mortgage is a method of accessing your home equity for cash flow. The lender or bank you choose will send checks to you house model on cashevery month. However, before you apply, you need to know the following three things:

How does one qualify?

This type of borrowing is designed for elderly people who are in retirement or about to die. For instance, you need to be 62 years or more to qualify. Thus, these loans provide a tax-free and steady income for the old people without having them out of their home. Lenders can take repayment of a loan from proceeds of borrower’s estate when they pass away or move.

Unlike traditional loan approval process, the criteria, which is used is quite different. Rather than assessing one’s debit and credit score, some other factors such as age, home value, home equity, and health are evaluated.

Safeguards that come with reverse mortgage

This type of loan is attractive to elderly people because it does not affect their Medicare benefits and social security. Thus, you will be accessing steady income that does not go to medical expenses. Moreover, during your life, the ownership and title of a home house model on cashremain with you. In fact, you can pay the loan back without selling the property. If the value of the home is higher than the value of the loan, beneficiaries can settle the debt and take the home back. In essence, it is impossible for the loan amount to exceed the home value as your home is used as collateral.

Any downsides?

Just like other loans, there are downsides. For instance, there are several fees attached to reverse mortgage loan. Some of them include closing costs, high interest rates, and mortgage insurance.

When you apply for a reverse mortgage, you need to know who will be affected. For instance, your children may have to repay the loan back to own the house.…