BUSINESS FINANCE HELP

Bridging Finance

Bridging Finances are the answer if you need to raise money quickly. The finances that you raise will be set against the value of your home, and can be used for various purposes. Bridging Finance Mortgage usually are for an agreed limited period of time typically around 3 to 6 months. These loans are widely used when moving homes, you are waiting for you old house to be sold but you still need to buy your new home but do not have the required amount of cash for a deposit, these sorts of loans can come as a life saver, providing you with the much needed cash fast, repayment can be done as soon as the old house is sold.

In order for you to apply for a Bridging Finance Mortgage, you need to be a homeowner. Your home must be on free hold or in a long-leasehold status for you to make use of this mortgage plan. Bridging Finance Mortgages are usually short term ones, and the loans can be used for any purpose, may it be to buy a new property or to do some much wanted repairs.

However if you still have a lot of Mortgage left to pay it may still be possible to take out a Bridging Finance Mortgage as a second mortgage, this depends on how much value you really have in the house and how much can be used as security for the extra loan.

With a Bridging Finance plan you could unlock up to 85% of your homes value, and in some cases you may be able to get 100% of the value. The interest of the mortgage depending on the amount you borrow can be added to the loan amount, there are no minimum terms or any exit fees associated with Bridging Finance Mortgages, the minimum amount you can borrow is around £30,000, some lenders will offer you loans regardless of your financial status. Lenders usually look at the type and quality of the home or commercial property that which is being used to secure the loan, rather than at your income or your ability to afford the necessary repayments.

Interest rates may be high but considering the benefits you can get, the interest does not seem to stand out. The money you need can be passed to you in a very short time frame, which of course is great news if you need the cash fast. Once the loan period has come to an end you must repay the entire loan in full, with the agreed amount of interest.

Bridging Finance can be found in two ways, Personal and Commercial, where you can borrow money for personal matters by securing the loan against your home or if you are a business customer the loan can be secured against commercial or semi commercial property, or in some cases the loan can be secured against a combination of the two types. Although they are two types all the same rules apply to both these cases.