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.

---

Poor Credit Mortgage - Overcoming Financial Slumber

There is a huge market for homeowners who have credit... Read More

Become A Smarter Borrower

With a nation that has in the region of a... Read More

Payday Loans ? The Legal Loan Sharking Industry

Laws have been created to protect people against "Loan Shark"... Read More

What is a Home Owner Loan?

A UK Home Owner Loan Can Unlock Your Capital To... Read More

Quick Cash Loans Online - A Fast Way to Get an Emergency Cash Advance

If you need a fast way to get an emergency... Read More

Unsecured Loans ? Substituting Secured Loans

Watching more and more people fall in the trap laid... Read More

What is a Secured Personal Loan?

A secured personal loan is the generic term for a... Read More

Money With The Click of a Mouse

Online payday loans seem to be popping up everywhere. A... Read More

Guide to Unsecured Loans

Outlined below is a guide to unsecured loans. It will... Read More

Secured Loans - UK Overview

Borrowing money has become more and more popular in the... Read More

Shopping for a Secured Personal Loan

If you find yourself looking for a loan, you'll likely... Read More

What are Home Improvement Loans?

Home improvement loans are loans specifically designed by loans companies... Read More

125% Equity Home Loans

If you are a homeowner in need of a home... Read More

Finance Your Home Business: Six Ways Under Your Nose

There are lots of ways to get additional capital to... Read More

How to Make Sure You Become a Profitable Trader

Regardless of your trading style; day trading, swing trading, or... Read More

Shopping for a Payday Loan

You wouldn't consider buying a new pair of shoes, a... Read More

Title Loans - Get More of the Title to Your Vehicle

Title loans have the same features as a secured loan,... Read More

Holiday Loans Can Expand The Horizon Of What You See

Why do kids get all the breaks? Winter-weary adults, fed... Read More

Financial Openings Without Warranty Alias Unsecured Personal Loans

Isn't it the trillionth article on unsecured loans? All are... Read More

A Beginners Guide to Bad Credit Secured Loans

Here is a useful beginner's guide to bad credit secured... Read More

Bad Credit Loans

Obtaining bad credit loans can be a real challenge. If... Read More

Finding the Best Secured Loan for Your Money

If you're looking for a secured loan, there are several... Read More

Debt Consolidation Tips

Here are some useful Debt Consolidation tips. Debt consolidation is... Read More

Getting the Best Loans UK with Bad Credit

Sometimes it might seem as though finding good loans UK... Read More

Steps You Can Take To Protect Your Financial Information and Personal Identity From Fraud

Financial fraud and identity fraud are one of the fasted... Read More

Do You Qualify for a Loan?

Like most people, you will probably wait until submitting a... Read More

Taking the Time to Find a Homeowner Loan UK

Trying to find a good homeowner loan UK can end... Read More

Payday Loans or Cash Advance Loans - Useful After a Bankruptcy

Payday loans, also known as cash advance, are a useful... Read More

Online Loans Made Easy

What will it take for you to get a low... Read More

Car Loans After Bankruptcy - How Poor Credit or a Recent Bankruptcy Can Affect Your Loan Approval

If you have poor credit or a recent bankruptcy, you... Read More

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

"Money is like a sixth sense without which you cannot... Read More

Guide to Bridging Loans

Here is a useful guide to bridging loans. This is... Read More

Benefits of a Bad Credit Personal Loan

Outlined here are some of the many benefits of a... Read More