Why Choose a Bridging Loan?

Listed below are some of the reasons for choosing a bridging loan. A bridging loan is a short term mortgage which is secured by your property. This is usually arranged by getting a mortgage on the new property, and taking out a second mortgage on the property being sold.

In effect, this type of lending is a kind of mortgage. It is secured on your home, but without the low interest rates usually associated with a mortgage. You must be aware of the risks associated with this. If you fail to sell your existing home, there is a chance you'll have to sell your new home just to pay off the lending.

Probably the most common use of a bridging loan would be connected to buying a property. A bridging loan gives you an agreed amount to help you bridge the gap between selling and buying your property.

Being self employed or having an adverse credit history or CCJs need not be a problem. A bridging loan can even enable people who have an adverse credit history to build a track record before applying for a conventional mortgage. A successful bridging loan can have a positive effect on a borrower's credit score making future finance more attainable.

Bridging loans can be used to purchase properties at auction, fund short-term commercial or residential renovations, and to safeguard a property purchase if the mortgage is delayed.

A useful feature of bridging loans is that the client can repay capital at any time, thus reducing the outstanding balance and monthly instalments.

A bridging loan can be used for a variety of purposes such as:

To enable the purchase of one property before the completion on the sale of another.

To fund the purchase of a property abroad.

Provide temporary funding for the purchase of a 'defective' property, pending completion of repairs.

To fund the urgent purchase of a property, pending arrangement of a long-term mortgage.

To raise capital for any purpose, pending a sale of the security property.

These are some of the benefits of a bridging loan:

An easy and manageable route to generating extra cash.

No survey, valuation or solicitors fees to pay.

You can use the cash for any purpose.

Bridging finance is increasingly used for property development including site purchase, self-build projects and property conversions. In the property investment market bridging loans can be used for completing purchases quickly; for example, when property has been secured at auction. They can also be cost-effective for clients wishing to acquire property for refurbishment and re-sale.

In fact, bridging finance can typically be used for any genuine commercial purpose as a short-term measure. Because of the short-term nature of the loan however you should expect to pay more interest and higher fees than with a long-term loan.

Some lenders offer fast in-principle decisions and may be able to release funds for clients very quickly. This 'quick' element allows clients to secure a property speedily, and with the minimum of stress.

You may freely reprint this article provided the author's biography remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

---

No Faxing Cash Advance Loans - 3 Reasons to Use A No Fax Payday Loan Company

No fax payday loan companies save you time with your application, grant instant approvals, and allow access to easy cash. Faxless applications eliminate the review by personal... Read More

Cheap Loans Till Payday - Using Cash Advance Loans in an Emergency

Need extra cash till payday? It's easy to apply and be approved for an online loan till payday. If you are in need of 100 dollars to... Read More

Unsecured Loans: The Lesser Known Sibling Of Secured Loans

What is man's greatest invention?Some of the latest gizmos would immediately crop up in our minds as the most probable of the answers. But do these gizmos... Read More

Poor Credit Mortgage - Overcoming Financial Slumber

There is a huge market for homeowners who have credit issues like - poor credit, sub prime loan borrowers. Some years ago what was seen as a... Read More

Shopping for a Secured Personal Loan

If you find yourself looking for a loan, you'll likely be getting a secured personal loan. A secured personal loan can be used for a variety of... Read More

Cash Advance Company - Comparing Payday Loan Companies Online

Comparing payday loan companies online saves you time and money. By researching rates, fees, and terms, you can find the best cash advance company. According to federal... Read More

Making Cars Accessible Through Secured Car Loans

Enervated by the hectic schedule at the work place, traveling back to home in a public transport carrier seems to be a grueling task. This reasons out... Read More

Motorcycle Loans For Military With Bad Credit

Motorcycle loans for military with bad credit aren't hard to come by. In fact when you start your search for the lender you will find more then... Read More

Alternative Venture Finance: Federal Grants and Loans

While most companies seeking venture capital initially think about angel investors and venture capitalists, a large alternative source of financing is federal grants and loans. The two... Read More

Car Finance Places You On The Top Gear While Buying A Car

Fast car on open roads. It is a perfect picture for any car enthusiast. But you have to go to your work and also drop your kids... Read More

Loans Guide

Many people are confused by the different types of loans available.Here is a helpful summary of the most common loans available today.Bad Credit Personal LoanA Bad Credit... Read More

How to Find Cheap Loans UK

For the individual in need of cheap loans UK, it can sometimes seem like the loan they seek is always just out of reach.The hardest part of... Read More

Benefits of a Bad Credit Personal Loan

Outlined here are some of the many benefits of a Bad Credit Personal Loan. Bad credit personal loans are increasingly popular these days. A poor credit history... Read More

Refinancing Your Auto Loan

Refinancing your loan is one of the best kept secrets around for saving you money, but most people never think of it. Whether refinancing your home or... Read More

Title Loans - Get More of the Title to Your Vehicle

Title loans have the same features as a secured loan, except for a single aspect. While secured loans do not spell out the type of collateral that... Read More

Guide to Homeowner Loans

Here is a useful guide to Homeowner Loans. A Homeowner Loan is a loan secured against your home. Homeowner loans can help you unlock capital tied up... Read More

Why Choose a Secured Loan?

Are you wondering why choose a secured loan? A secured loan is a loan which is provided to you from a bank or building society. Secured loans... Read More

Personal Loans for Bad Credit Can Discipline Repercussions of Negative Credit

Bad credit is like an ongoing battle for many loan borrowers. Bad credit has many repercussions for the people when they apply for personal loans. You usually... Read More

Secured Loans ? Filling the Void Created by the Deficiency of Resources

"Money is like a sixth sense without which you cannot make a complete use of the other five."W. Somerset Maugham aptly describes the role of money in... Read More

Secured Car Loan - if Car Signifies a Second Home to You

Cars ? they are your passion, necessity, luxury, earning member. They have speed, they have music, they have curves, they have comfort, they have security, they have... Read More

Where to Look for a Fast Homeowner Loan

If you're looking for a fast homeowner loan, you might not know where to begin your search.Some banks and finance companies can take weeks to make loan... Read More

A Guide to Finding Inexpensive Direct Loans

For those individuals who are looking for fast and inexpensive direct loans, it may seem as though there is too much information and too many possible loan... Read More

Top 10 Ways to Avoid Loan Fraud

Every year, misinformed homebuyers, often first-time purchasers or seniors, become victims of predatory lending or loan fraud. Below you'll find the top ten ways to avoid becoming... Read More

How to Find a Loan or Mortgage with Bad Credit

If you have bad credit and you are trying to get a personal loan or mortgage, it may seem like a difficult situation. However, there is hope.... Read More

Finding a Loan With Bad Credit

No matter what your credit history is the simple fact is that at some point in your life you will need a loan. If you have a... Read More

When is a Commercial Lender not a Commercial Lender?

A Commercial Lender is Not a Commercial Lender When it is a BankA commercial lender offers loans backed by hard collateral, usually real estate. Usually a commercial... Read More