UK Bridging Loans - A Brief Guide  

by Ken Barnes

Bridging Loans are available for a whole range of financial purposes and can be arranged on the basis of a 1st , 2nd or even 3rd charge equity release. They are generally used as short term loans, arranged when you need cash to bridge a financial gap. They are a very useful option if you need cash for a brief period before you are able to source financing by other means or if you may loose a property purchase whilst waiting for your mortgage to be arranged.

Mortgage Interest Rates
Interest rates are very competitive within the bridging finance market but, as a short term loan, they are naturally higher than those charged on long term mortgages. Interest rates are usually quoted per month. When considering a bridging loan remember, that you may be paying not only for the loan but also for any mortgage on your existing property.

Of course you could get a traditional loan, but this can take longer and the loan terms might be too long or the amount offered too low.

Commercial Lenders
Lenders who offer bridging finance usually look more at the type and quality of the property being used as security, rather than at the borrower's income and ability to afford repayments. Lending collateral can be more than just one property, business equipment, inventory, commercial or residential properties owned by the borrower can also be utilised as security. Any property you intend to sell can also be placed as collateral with the Lender.

The very nature of these loans usually means that other finance is being arranged, consequently the loan is almost guaranteed to be paid off in full and on time. Which means Lenders are generally much quicker in processing applications in order to get the deal. Loans are quick to arrange, often within a matter of days.

Repayments will typically take place over a period of time ranging from a minimum of six months to one, two or even three years. The applicant can choose to either borrow and pay back the whole amount or opt for interest only repayments.

Bridging finance is a very useful option if you need cash for a short period of time. Loans are available for all types of clients, from limited companies to individuals; from those with excellent credit status to those who have found it difficult to obtain mortgages and loans, including businesses, the self-employed and those with a poor credit history. It's the security that's the main factor when Lenders come to decide if you are eligible.

Working with a qualified Broker who understands the process of equiring a bridge loan is the quickest and easiest route to a favourable rate and good terms. Most Brokers will not even charge you a fee for this service, their fee instead coming in the form of a commission from the Lender.

By using a Broker you can get your application in front of numerous Lenders quickly, compare their offers and end up with several who are willing to compete for your business.

About the Author

Considering a Bridging Loan in the UK? Try commercial mortgage brokers Commercial Lifeline. We can save you time and capital.

This article has reprint rights. Reprint and distribute as you like. All we ask is that no changes are made, this resource text is included, and that the links above are intact.

Honeymoon Tips | 40 Year Mortgages How Do They Work? | Debt Settlement Avoids Credit Checks With Debt Consolidation | Online Loans Information | What Happens After The Sheriff Sale | Used Car Loans - own a car through low rate finance | First Time Buyer: Providing Assistance to Naive House Buyers | Debt Consolidation Ideas and Debt Management Ideas | First Time Buyer: Providing Assistance to Naive House Buyers | Used Car Loans - own a car through low rate finance | Hennepin County Vital Records | Types of Home Loans in India | Interest Rate Imbalance | How To Make Sure You're Getting The Best Credit Card Rates | How To Actually Calculate Loan Payments | Current Mortgage Rates: What Effect Does The Federal Reserve Really Have? | How To Actually Calculate Loan Payments | Becoming Debt Free May Require Lifestyle Changes | FREE Reports: Ethical Lending & The Mortgage Process | Debt Consolidation: An Opportunity To Mend Credit Status | Bankruptcy And Student Loans | UK Bridging Loans - A Brief Guide | Applying for Your First Home Mortgage? What You Need to Know | Display Signs, Sending The Right Message | Mortgage Loans In Florida Readily Available Online | How To Save Money By Investing On Life Insurance | First Time Buyer: Providing Assistance to Naive House Buyers | New Hampshire Refinance Mortagages | Mortgage Interest Rates: Can You Predict Mortgage Interest Rate Trends? | Improve Your Business With Corporate Gift Services | How To Actually Calculate Loan Payments