Tag Archives: bridging loan
Quick Bridging Loan Get Interim Aiding Funds in No Time
Bridging loans are interim loans. A bridging loan is that you take when there is a temporary shortage of money like, when you are moving property or business. For example if you are in middle of moving house, and found the perfect new home but you cannot sell your current home, then you can go for bridging loan to pay for the shortfall. As the name suggests quick bridge loans are very fast sanctioned ones. It takes hardly 24 hours.
Quick bridging loans are generally secured loans, the property which you are going to buy being the collateral. These loans are risky for lender since till now you are not the owner of property which you are keeping as collateral. Here the interest rates are very high as these are very quick and risky for lender. One can avail this loan even in the following situations – One may be pondering over purchasing of a property from an auction, in which case one needs to raise the funds very quickly, thinking of refurbishing an investment property in mood of selling it in a short space of time, covering temporary cash flow problems or taking off on a luxurious holiday.
Figures of quick bridging loans
The loan amount is usually 65% of the value of properties placed as collateral; you can borrow between £25,000 and £500,000 as a standard figure. Interest rates are normally 10% APR to 30% APR. Repayment time period is very short as already mentioned; normally it will be around two months.
Quick bridging loans are usually sanctioned in one to two days, so all that you have to do is to be ready with all required documents so as to make it faster. You can find galaxies of quick bridging loan lenders online, select one who satisfies you the most and apply for loan.
Summary
Quick bridging loans are short-term financial assistance or loans that help us when we are in need funds for a limited period of time. These loans have small repayment time period and are sanctioned very quickly. So whenever you are short of money temporarily then blindly you are advised to get quick bridging loans and manage your financial situation.
Bridging Loans – How Quickly Could I Get One?
First of all, let’s just take a quick look at exactly what a bridging loan actually is. It’s a nightmare scenario. You’ve spotted the perfect new home. Right number of rooms. Good size, well looked after, not too far from work and with a great garden for the kids. The only fly in the ointment is that you’ve not managed to sell your own property yet.
That’s the end of that then, right? Well actually, not necessarily. Enter the bridging loan. As the name suggests, it’s a short term loan facility that provides a ‘bridge’ between one loan and another. In this case, the loan would allow you to go ahead and make the purchase of the second property. The facility would only need to be short term, typically between 4 and 12 months.
There are of course, quite a few other reasons why you could consider a bridging loan:
– you may be considering making a purchase of a property from an auction, in which case you need to raise the funds very quickly.
– you could be thinking about purchasing land or even, as all the property programmes on television are concentrating on at the moment, a property abroad.
– refurbishing an investment property with the intention of selling it on in a very short space of time.
– raising money to pay a tax bill
– covering temporary cashflow problems
– taking off on an impromptu luxury holiday
– your daughter’s getting married. She wants all the trimmings and you have to do your parental duty and cover the expense!
As the property merry-go-round has been spinning at full tilt in recent times, many people have found themselves in a situation such as described above and as a result, the volumes of bridging loans have increased accordingly. Lenders have provided more choice and options and have often been innovative in their approach to help their customers.
Clearly, the key principle of a bridging loan is providing the cash very quickly to the customer who, probably more than any other type of borrower, needs the cash immediately. The whole process is very often streamlined and simple in real terms. There are many online brokers that you could make an enquiry to and having done so, they will probably be in touch with you on the phone in a matter of only a few minutes and you could have a decision in principle within an hour or so.
As part of the application, the broker, on behalf of the lender, may ask you to supply some or all of the following supplementary documentation:
– proof of residency
– proof of income
– proof of ID
– buildings insurance certificate, and
– an independent valuation figure
Once received, the loan could be completed in somewhere between 2-10 days. Wow! Now that is fast! So if you need to raise finance quickly, you now know what to do.