Loans Information

Luxury Real Estate Information


Rancho Palos Verdes, California Homes
Palos Verdes, California Homes
South Bay, California Homes
Luxury Mexican Beachfront Homes

Featured Properties


Oceanfront Estate Near Trump National

Related Information


Loan Information
Real Estate Information
Mortgage Refinance Information

Risk It With A Bridging Loan?


How many times have you been casually going about your business, seen a great property and thought, "that would be a really nice place to live"? Then you snap out of it, knowing you can't lay your hands on the money fast enough. Well what if you really wanted this property? You discussed it with the agent, your emotions got the better of you and you made an offer.

This has to be a fast sale or the vendor will sell it to someone else, what will you do? How will you find the cash at such short notice? Unless you happen to have thousands of pounds lying around in some bank account you forgot about, you're going to have to borrow some money and fast!

Did you expect the financial industry NOT to have a product for people just like you? Of course not. They've thought of everything. The answer is a bridging loan!

A bridging loan provides a temporary window. As is suggested by the name, it bridges the gap between the amount of cash you need now and the amount you currently have. What you earn normally has no bearing on the matter. How much your current property makes on open market again does not come into it. Your bridging loan takes care of your what you need right now.

If you apply for a bridging loan you can buy the property immediately. You will pay it back when you sell your current property. So, you see, you can have the best of both worlds. Just make sure you read the small print. Make sure you're not being charged extortionate amounts of interest. I always make a point of reading the small print, no matter how long it takes.

Usually, a bridging loan will be a short-term loan with a repayment cycle of one week to six months. There should always be a clause allowing the customer to repay the full amount as soon as their current property is sold.

More often than not, a bridging loan uses the customers current property as security. As the customer, you have options. You will generally have the option of securing the loan on both properties or either one of them. This gives you a little flexibility.

These guys usually move fast. The brokers' valuer will assess the property and come up with a figure on which your bridging loan will be based. This figure will depend on many factors. At the top of the list, you'll find the usual suspects: location, number of bedrooms, size and the general condition of the place, to name but a few.

As soon as the valuation is complete, the lender is in a position to advance the cash to the customer. If you choose a good broker this will happen fast. As a rough rule of thumb, expect to be able to borrow up to 65% of the value of the property. Lenders offer as much as £25000 to some million pounds on a bridging loan.

Where's the best place to get a bridging loan? Ask your financial advisor and look around, especially on the internet. More and more lenders are coming online these days and there are always some really great deals to be had as lenders try to "out-offer" each other. Get quotes from as many different lenders as you can. Draw up a quick rate comparison sheet to help you decide. You will find that there are many different fee levels for this kind of loan. Sometimes it may be better to pay a little more if the terms are more favourable. Again, always read the small print.

One of the main deciding factors for you will be the speed at which the cash will be forthcoming.Always make this the most important factor in your decision. No point going through all this to be pipped at the post because you were waiting for the money. The whole reason to get a bridging loan is to get instant cash. Choose a lender who specifically states how fast they deliver after signing. You will find many lenders are less than acceptable on this point.

So, a bridging loan can help you out in a tight squeeze. However, there are always two sides to the coin.

Bridging loans are perceived as "higher risk" by most lenders. Interest rates are generally higher because of this and you may find that the one-off charges are also higher than with a conventional loan. Usually because this is the customers' only option and the term is short, the rates will be accepted. The best way to approach a bridging loan is to keep the term short thereby minimising costs.

A further risk when using a bridging loan is counting on your existing property being sold quickly. Should the market drag for you, you will end up paying lots of interest on your bridging loan. This will be your situation until your home is sold.

To conclude, a bridging loan may seem like a great way out and used correctly, it often is. However it is not without it's risks. The risks are very real and deciding to take out a bridging loan should be a measured decision. For these reasons, it's highly recommended that you talk to a good independent financial advisor.

Fabio Marcell is a seasoned contributor to many online andoffline journals specialising in the financial sector. Hehas many years experience in the loans industry and iscurrently sponsoring the following website: http://www.a1-low-interest-loans.info(for web reprints please ensure this URL is hyperlinked)(c) 2005 Fabio Marcell - All Rights Reserved


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


Forbes

Why You Should Rarely Pay Extra Toward Your Student Loans
Forbes
If you want to get out of student loan debt quickly, then paying extra towards your student loans might seem like a no-brainer. Pay more, watch the balance go down, avoid extra interest, and see the loans disappear quickly. However, for many borrowers, ...
Why Public Service Loan Forgiveness Is So UnforgivingNPR
The Public Student Loan Forgiveness Rescue Hasn't Gone Well So FarNew York Times
The Student Loan WhistleblowerKUOW News and Information
IFAP - Electronic Announcements - US Department of Education -Consumer Financial Protection Bureau -Government Accountability Office -Mass.gov
all 47 news articles »


Regulation of installment loans varies widely by state
Marketplace.org
A new report from Pew Charitable Trusts finds that nearly 10 million Americans turn to consumer finance companies for short-term installment loans when they need quick cash. But just how much they pay in finance charges can add up depending on how ...

and more »


Forbes

Here Are The 5 Biggest Student Loan Mistakes Of 2018
Forbes
No one likes to make a mistake. When it comes to your student loans, in particular, a mistake can cost you more money. According to Make Lemonade, there are more than 44 million borrowers who collectively owe $1.5 trillion in student loan debt. The ...



The Real Deal

These were the top 10 outer borough loans in September
The Real Deal
Two of the top three outer borough loans recorded in September were for Bronx projects. The No. 1 loan was $115 million for Eastchester Heights, a complex spanning five city blocks in the northern part of the borough, while the number three loan was ...



Forbes

Judge Orders Betsy DeVos To Begin Student Loan Forgiveness
Forbes
When the federal government forgives student loans - even if a college committed fraud - taxpayers effectively foot the bill. DeVos has proposed creating a new formula for student loan forgiveness, which would cancel a portion of a borrower's student ...
Court allows Obama-era student loan rules to take effect, delivering defeat to DeVosWashington Post
Students defrauded by colleges can have student loans forgivenNBC4i.com
Obama Student Loan Rule to Take EffectInside Higher Ed
CNBC -Politico -Wall Street Journal -CNNMoney
all 179 news articles »


Detroit Free Press

New job perk that's luring employees, helping them cut college debt
Detroit Free Press
Carhartt will pay $50 a month up to $10,000 to help its eligible part-time and full-time workers worry a little less about their student loan debt. Employees have to be with the company at least 30 days, if non-union, or 90 days, if in a job ...
Think student loans are bad now? Just wait.BenefitsPro
How to Spend Your Money When You're Paying Off Student LoansZing! Blog by Quicken Loans (blog)

all 9 news articles »


VICE

Here's Fresh Evidence Student Loans Are a Massive, Generational Scam
VICE
For some perspective on how America let student loans get so out of control, why taking on debt is so often a mistake, and what we can do about it, I called co-author Julie Margetta Morgan for a chat. This conversation has been lightly edited for ...



Bloomberg

Leveraged-Loan Risks Start to Get the Fed's Attention
Bloomberg
In minutes of the Federal Open Market Committee's September meeting, policy makers made explicit for the first time that they're watching for any hint of risks to financial stability stemming from the more than $1 trillion market for U.S. leveraged ...



America's $1.5 trillion student-loan industry is a 'failed social experiment'
MarketWatch
But ask many borrowers in this generation whether they worry about how the loans will affect their future and you'll get a slew of bleak replies: It's stopped them from getting their car fixed, switching jobs, buying a home and having children. Even a ...



CNBC

Americans hold $1.5 trillion in student debt—here's how to know which repayment plan is best for you
CNBC
Paying off your student loans efficiently is most important than ever before. According to most recent figures from the Federal Reserve, 44.5 million Americans collectively hold $1.5 trillion in student debt. Even though college graduates have a huge ...


Google News

home | site map
TIGER MEDIA© 2006