Business and personal short term bridging loans

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Bridging loans

Dictionary definition of Bridging - Something that provides passage over a gap or barrier.

Dictionary definition of Loan - To borrow or lend something with the intention of giving it back.

In essence a bridging loan is a form of borrowing to bridge a gap in your short term finances. The form of lending can be used for commercial or business, or residential, domestic or personal use. It is a quick alternative to conventional lending like longer term secured personal loans.

Although getting monetary advances in this fashion is usually quick and easy, generally funds can be made available within twenty four to seventy two hours, because of the high minimum threshold, it should not considered for general purpose. The industry standard is usually a minimum of twenty seven thousand up to around the three and half million marks. It is short term financing, so you would be looking at repayments spread anywhere between one and twelve calendar months.

Due to the amounts involved and the loan lengths, bridging loans are not regulated by the Financial Standards Authority, although you are back by the Consumer Credit Act. In essence, you have an eight to ten day 'cooling off' period, where as you can legally decline the advance. Popular uses for residential or personal purposes include, but are not exclusive to buying a new property when your current property has not been sold.

Commercial uses include, but are not exclusive to helping out with business cash flow when waiting on payments for your services or goods supplied. It is a secured loan, so you do need some form of security to access the cash advance. This is usually taken in the form of estate. In most bridging loan application, the amount made available to you is worked out deducting your outstanding mortgage from the valuation of your property. You should receive around seventy five percent of this value. It is also very quick.

Funds can be in your account anywhere between twenty four and seventy two hours. If you search in the Google search engine for 'bridging loans' it produces over one million web pages it considers relevant to that search. Search pages from the UK only and it narrows the search down to around four hundred thousand.

We have vetted some of the top sites for you, and simply by filling out our application or enquiry form, you can have your request sent to a minimum of ten of these types of loan providers, who will get back to you stating if, how much and repayments plans available to you. No initial credit check is taken by these companies as they are securing your loan against your property.

Bridging loan interest rates

Typically, with securing the advance against a property, factoring in the short term of repayment and depending on your loan value, including a bad credit history, you should be looking along the lines of between one and two and half percent in interest charges.

Typically, bridging loans start at around the twenty seven thousand pound mark, up to and sometimes exceeding three and half million. Real estate considered for security includes residential property like terraced houses, semi detach, detached and apartments, plus houses that are rented out to tenants, commercial properties like retails outlets and office buildings, industrial units like farms and factories and in some cases lenders will also considered foreign or off shore holiday homes or investment properties as a guarantee for your secured loan. Make sure you do not get stung for brokers charges, try to deal directly with the actual lender.

Use our enquiry form to have your application sent to a minimum of ten direct lenders to see who offers what. Simply fill it out and we make initial contact for you at no cost to yourself.