Bridging Loans Catering To Your Needs

Bridging Loans Catering To Your Needs

Bridging Loans Catering to​ Your Needs
Every now and then we find ourselves in​ a​ situation where we need a​ quick injection of​ cash for different reasons .​
It may be the​ gap in​ between buying and selling of​ a​ property,​ for an​ entrepreneur to​ cover for his expenses before he receives payment from his buyers.
Bridging loans basically fill the​ time gap of​ a​ transaction,​ which takes place between two parties.
The option of​ bridging loans may be exercised for following reasons
• to​ raise the​ capital when there is​ a​ gap in​ sale of​ the​ property
• to​ purchase property in​ a​ hurry,​ i.e .​
from an​ auction
• to​ buy one property before we sell the​ another property
• Temporary funding for the​ purchase of​ a​ defective property
• For an​ entrepreneur who sells his goods on​ credit he may need bridging loans as​ working capital requirements before he gets paid by his borrowers.
A bridging loan is​ basically a​ short term secured loan,​ which is​ taken by the​ borrowers to​ make do for a​ short period of​ time .​
Therefore,​ they carry a​ little higher rate of​ interest .​
You need to​ provide collateral to​ avail these loans .​
You can provide any of​ the​ following as​ a​ security to​ cover up for bridging loans.
• Residential properties
• Auction properties
• Retail shops
• Development sites
• Buy to​ let properties
• Commercial or​ semi commercial properties
Some of​ the​ features of​ bridging loans are.
• Bridging loans come for a​ relatively short period of​ time period usually ranging from days to​ a​ year,​ which is​ the​ maximum period for which it​ can be taken.
• With the​ understanding of​ the​ bridging loans you​ can have them within five working days of​ your application
• the​ amount that a​ borrower can borrow an​ amount between 50,​000 and 5,​ 00,​000 respectively depending upon his credit requirements and his financial circumstances
• With the​ security the​ borrowers can get up to​ 70% of​ the​ value of​ the​ collateral going up to​ 100% of​ loan to​ value
As we know that bridging loans are secured loans and therefore the​ borrowers must also know about the​ open ended bridging and close ended bridging .​
A ‘closed ended bridge’ is​ where the​ repayment source is​ already in​ place,​ but the​ timing of​ it​ is​ as​ such that the​ funds will not be available to​ meet the​ immediate funding requirements of​ the​ borrower for example a​ owner has sold his house but is​ yet to​ receive to​ payment so in​ order to​ go further he needs money on​ a​ short term basis.
An ‘open ended bridge’ is​ when the​ intended repayment source is​ known,​ but not guaranteed for example if​ an​ owner wants to​ sell his house but there are no immediate prospects of​ the​ house being sold .​

Bridging loans now days are available to​ everyone,​ even to​ people with bad credit history .​
People with bad credit history include people like:
Defaults,​ arrears,​ CCJ’s or​ who have filled for bankruptcy.
A label of​ bad credit is​ put on​ a​ person when the​ borrower is​ not able to​ keep up with the​ repayment schedule that is​ designed for him .​
Which then results in​ a​ poor credit score,​ which is​ a​ three digit rating of​ a​ person’s credit worthiness .​
Another advantage for people with bad credit history is​ that they can improve their credit score and enjoy the​ other benefits that people with good credit history enjoy.
Bridging loans can be applied for by going online and submitting your details which would be regarding your loan,​ personal information and the​ security that you​ will be providing .​
After that the​ lenders will give you​ their decision in​ a​ few days .​
There is​ always an​ instance when an​ individual finds that he is​ a​ little short on​ liquid cash to​ cater for the​ immediate requirement .​
That is​ when we can use bridging loans that are ideal to​ cover up for our lack of​ funds for a​ short time .​
And they are available relatively easily in​ the​ market.

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