Application Form – The very first step to secure a bridging loan is to fill a complete application form which is provided by the lender. The application form will ask your personal details and the entire information requisite to acquire a loan.
Bad Credit - A person will have a bad credit if he fails to repay the loan to the creditor. Bad credit hinders him in taking up a loan in the future. However the bridge loan can be secured even by the people having bad credit score.
Bridging loan – A short term loan acquired to meet the urgent financial requirements related to property. This type of loan bridges the gap between the buying of a new property and selling of the old property. Generally the interest rate is higher than the other forms of traditional loans due to its short tern nature. The time period for a bridge loan varies from 30 to 360 days.
Bridging loan lender – These are not the regular financial institutes used for depositing the money and other transactions. Bridging loan lenders specialize in providing quick and easy short term loans. They have the ability to provide loans even to the bad creditors.
Collateral – A property used as the guarantee against the loan secured. Collateral is an important part of the commercial bridging loan. This will specify the loan amount to be proposed by the lender.
Valuation – This is the fee payable to the lender in advance for the valuation of your property. Lenders make sure that the property is worth the amount you would want to borrow.
Wednesday, December 19, 2007
Tuesday, December 18, 2007
Do’s and Don’ts regarding Bridging Loans
DO’S
• Do shop around and look for the ideal bridging finance lender.
• Compare and compare. Different lenders offer different interest rate as well as loan amount. So, it is always a good practice to compare the proposals by various loan lenders.
• Do check the past history of the commercial bridging loan lender, you can ask for the case histories. This will give you a fair idea of his work ethics and his effectiveness as a lender.
• Think before you actually take up a loan because what ever is taken up will eventually have to be paid off. Analyze the complete situation one more time and be sure that what time will take you to repay the loan. As the interest generate on the monthly basis.
DONT'S
• Do not take up the bridging loan over and above your actual needs, because later it will be shunned out of your pocket only.
• Do not forget to read the contract thoroughly. Never avoid the small prints as they may carry certain conditions will you want not want to agree. So read every bit of the contract and only then sign the document.
• And last but not the least never forget to repay your bridge loan on time. The extend in the period of the loan results in mounting up the money to be returned
• Do shop around and look for the ideal bridging finance lender.
• Compare and compare. Different lenders offer different interest rate as well as loan amount. So, it is always a good practice to compare the proposals by various loan lenders.
• Do check the past history of the commercial bridging loan lender, you can ask for the case histories. This will give you a fair idea of his work ethics and his effectiveness as a lender.
• Think before you actually take up a loan because what ever is taken up will eventually have to be paid off. Analyze the complete situation one more time and be sure that what time will take you to repay the loan. As the interest generate on the monthly basis.
DONT'S
• Do not take up the bridging loan over and above your actual needs, because later it will be shunned out of your pocket only.
• Do not forget to read the contract thoroughly. Never avoid the small prints as they may carry certain conditions will you want not want to agree. So read every bit of the contract and only then sign the document.
• And last but not the least never forget to repay your bridge loan on time. The extend in the period of the loan results in mounting up the money to be returned
Monday, December 17, 2007
Flexibility, a bridging loan offers
Bridging loans are a popular source of raising funds in the times of need because it offers immense amount of flexibility that nearly no other type of loan offers. Bridging loan lenders offers a lending hand and is able to understand your urgent requirements. They have the ability to provide you loan for any type of property, be it residential or commercial. The borrower is free to use loan amount for auction purchase, acquiring fresh property, refurbishment of existing property.
Although, commercial bridging loans are of short term nature, even then it provides a flexibility of repaying the loan amount at any time between a week up-to a year. This allows you to sell off your existing property at a desired cost, with substantial amount of profit.
Bridging finance loans are also known as secured loans, this is because a borrower’s needs to provide a collateral against the loan. However the good part is that these easy loans can be procured by offering any type of collateral property. The lenders are flexible enough to accept any type of property provided the property has adequate documentation. Generally, in number of cases the borrower offer’s the very property as collateral which he intends to buy with the loan amount.
The hasty financial requirements will not leave you in an embarrassing situation, if you approach the right people for right type of help. These bridge loans are available at the very time you need it. For further inquires related to bridging loans requirement, you can drop a mail to enquiries@supreme-finance.com.
Although, commercial bridging loans are of short term nature, even then it provides a flexibility of repaying the loan amount at any time between a week up-to a year. This allows you to sell off your existing property at a desired cost, with substantial amount of profit.
Bridging finance loans are also known as secured loans, this is because a borrower’s needs to provide a collateral against the loan. However the good part is that these easy loans can be procured by offering any type of collateral property. The lenders are flexible enough to accept any type of property provided the property has adequate documentation. Generally, in number of cases the borrower offer’s the very property as collateral which he intends to buy with the loan amount.
The hasty financial requirements will not leave you in an embarrassing situation, if you approach the right people for right type of help. These bridge loans are available at the very time you need it. For further inquires related to bridging loans requirement, you can drop a mail to enquiries@supreme-finance.com.
Wednesday, December 12, 2007
Documents required for Bridging Loans
Now when you have already decided to apply for a high speed bridging loan, we have prepared a piece of information which will actually help you in getting a commercial bridging loan quickly and easily. The lender will be in the best position to move quickly if he receives all the documentation from the borrower well on time.
The required documents to avail UK bridging loan are
1. Submit the complete application form dully signed at the respective financial institution. This you can avail from the bridging loan lender after discussing your loan requirements.
2. A copy of RCB
3. Identity proof
4. Details of bank statement and financial statement
5. All the papers regarding the property to be purchased /Property contract papers, sales orders etc.
6. Documents of collateral property
7. Other documents – every financial institute has a slightly different way of proceeding, therefore they may ask for some other documents as well.
The borrowed amount starts from £26, 000 and goes up-to £5 Million pounds and can be borrowed for periods which range from a week up to twelve months.
Bridging loans are generally called for the urgent requirements and can be procured within 24 hours, provided the documents you provide to the bank are correct and as per the requirement of the bridging loan lender.
The required documents to avail UK bridging loan are
1. Submit the complete application form dully signed at the respective financial institution. This you can avail from the bridging loan lender after discussing your loan requirements.
2. A copy of RCB
3. Identity proof
4. Details of bank statement and financial statement
5. All the papers regarding the property to be purchased /Property contract papers, sales orders etc.
6. Documents of collateral property
7. Other documents – every financial institute has a slightly different way of proceeding, therefore they may ask for some other documents as well.
The borrowed amount starts from £26, 000 and goes up-to £5 Million pounds and can be borrowed for periods which range from a week up to twelve months.
Bridging loans are generally called for the urgent requirements and can be procured within 24 hours, provided the documents you provide to the bank are correct and as per the requirement of the bridging loan lender.
Tuesday, December 11, 2007
Bridging Loans for real estate developers
Experienced developers or property experts know exactly how significant a bridging loan can be in times of financial fix. The property transactions do not wait for somebody who will take months or for that case may be weeks to arrange the money. Because of the boom in the global property market, there are several buyers for the particular piece of property. This makes the business transaction takes palace in just hours. Bridging loans lenders are a brilliant source to procure easy commercial bridging loan within 24 hours if all the required papers are in place.
The Bridging loans lenders have the ability to arrange the money quickly and their principal guidelines are generally flexible. The more beneficial point is that they lend the money on the collateral property value and not against the purchase price. This benefit is reaped by the property developers who have the skill to buy the property on a lesser price.
The short term nature of the fast bridging loan demands the timely repayment of the loan amount. Estate agents have the potential to sell off the property within days and hence can easily pay off the entire loan amount well on time.
There are two types of bridging loans available namely open bridging loan and close bridging loan. Closed bridging loans are available for a fix or predetermined time period and open bridging loans have no fixed repayment period although there mite be a some amount of money required to payoff after a certain period of time. These types of easy commercial bridging loan are ideal for the property agents as well as for general people interested in buying their dream house.
The Bridging loans lenders have the ability to arrange the money quickly and their principal guidelines are generally flexible. The more beneficial point is that they lend the money on the collateral property value and not against the purchase price. This benefit is reaped by the property developers who have the skill to buy the property on a lesser price.
The short term nature of the fast bridging loan demands the timely repayment of the loan amount. Estate agents have the potential to sell off the property within days and hence can easily pay off the entire loan amount well on time.
There are two types of bridging loans available namely open bridging loan and close bridging loan. Closed bridging loans are available for a fix or predetermined time period and open bridging loans have no fixed repayment period although there mite be a some amount of money required to payoff after a certain period of time. These types of easy commercial bridging loan are ideal for the property agents as well as for general people interested in buying their dream house.
Be cautious before taking a bridging loan
Bridging loan is fastest mode of solving an immediate cash requirement for a purchase of new property. Other than this, there are many other benefits attach with the easy bridging finance. However one should always move with the caution even procuring this easy loan. We have highlighted some precautions which should be undertake or analyzed before taking up a bridging loan
1. Shop well in the market, as there are good numbers of Bridging finance lenders available who are ready to avail their services to you, you just need to locate the ideal bridging loan lender.
2. Make sure that you pick up a good deal which charge the minimum amount of interest and offer easy payment installments. The payments on your bridging loans are not due until you sell your old house.
3. The total amount you receive as bridging loan is generally 70-75% of the collateral property value minus any previous mortgage on the property. Ensure that you are able to receive not less than amount specified above.
4. Your collateral property is at risk in case you are not able to repay the loan amount. So make sure that you pick up bridge loan only in case you have the ability to repay the entire loan amount.
5. Generally the lenders propose to extend the time period of bridging loan in case you are not able to repay the amount on time. However, the interest rate charge on the loan is cumbersome. So additional time period means additional interest rate
We hope that this piece of information serves the purpose of creating awareness about Bridging Loans and help you take a wise decision.
1. Shop well in the market, as there are good numbers of Bridging finance lenders available who are ready to avail their services to you, you just need to locate the ideal bridging loan lender.
2. Make sure that you pick up a good deal which charge the minimum amount of interest and offer easy payment installments. The payments on your bridging loans are not due until you sell your old house.
3. The total amount you receive as bridging loan is generally 70-75% of the collateral property value minus any previous mortgage on the property. Ensure that you are able to receive not less than amount specified above.
4. Your collateral property is at risk in case you are not able to repay the loan amount. So make sure that you pick up bridge loan only in case you have the ability to repay the entire loan amount.
5. Generally the lenders propose to extend the time period of bridging loan in case you are not able to repay the amount on time. However, the interest rate charge on the loan is cumbersome. So additional time period means additional interest rate
We hope that this piece of information serves the purpose of creating awareness about Bridging Loans and help you take a wise decision.
Sunday, December 2, 2007
Bridging Loan Process
Bridging loans works through a simple process which is easy to understand and doesn’t hold many complications. All bridge lenders work through a similar procedure which is quick and requires less documentation unlike traditional loans.
They quickly check the enquiry put in by you and verify your details. After verification, arrangements are made for the valuation of the property against which the loan will be provided. The Valuation fee is generally paid by the borrower. The suitable quote is then prepared by the lender and if terms and conditions are agreed by both the parties involved, the process is taken forward.
Valuation is an important aspect of commercial bridging loans, as it will finalize the amount of loan which will be sanctioned. In the due course of valuation, you need to undertake the work related to the documentation of loan, documentation of the land urgently. Make sure that you check for the previous records of property like land disputes, owner of the property etc.
There are certain other fees which you will encounter in this process of short term finance, which are as follows-
Legal fees- This fee is paid to bridge loan financing agency’s solicitor for all the legal help taken. This price includes the help taken by you as well by the firm.
Lender’s completion fee – This cover the miscellaneous expenses occurred during the process. This is calculated as per the bridge loan amount.
Good faith deposit – Optional, This depends upon the lender. This is charged to assure that you do not back out after the loan is sanctioned by the lender.
They quickly check the enquiry put in by you and verify your details. After verification, arrangements are made for the valuation of the property against which the loan will be provided. The Valuation fee is generally paid by the borrower. The suitable quote is then prepared by the lender and if terms and conditions are agreed by both the parties involved, the process is taken forward.
Valuation is an important aspect of commercial bridging loans, as it will finalize the amount of loan which will be sanctioned. In the due course of valuation, you need to undertake the work related to the documentation of loan, documentation of the land urgently. Make sure that you check for the previous records of property like land disputes, owner of the property etc.
There are certain other fees which you will encounter in this process of short term finance, which are as follows-
Legal fees- This fee is paid to bridge loan financing agency’s solicitor for all the legal help taken. This price includes the help taken by you as well by the firm.
Lender’s completion fee – This cover the miscellaneous expenses occurred during the process. This is calculated as per the bridge loan amount.
Good faith deposit – Optional, This depends upon the lender. This is charged to assure that you do not back out after the loan is sanctioned by the lender.
Thursday, November 29, 2007
Guidelines for Bridging Loan
Bridging Loans are short term loan obtained for financing or for investing in the real estate until traditional financing can be obtained. Most of commercial banks that we use for depositing our money etc do not provide bridge loan financing, this is because of loan’s capricious nature, lack of proper documentation and the risk involved.
Bridge loan lenders have been fettered by state or federal law; however there are some limitations with regard to interest rates. Other than this there are certain guidelines which regulate the bridge loan borrower.
1. The age limit of a borrower should be in between 18 to 70 yrs
2. The loan is obtained against the value and not against the purchase price of collateral property. This is of significance for the mature developers who often buy the property at a lower price. However this still remains the choice of Bridge Loan Lenders to decide upon.
3. Utmost loan value is 65-70% of the collateral property.
4. The interest rate is generally charged at a higher rate, as high as 15-29%. This is because the time frame of quick bridge loans is very short like a week up to 12 months.
Disclaimer: The entire information provide in this post is a mere piece of information and has been gathered from various sources. This has no legal value of its own.
For any further information you can drop a mail at enquiries@supreme-finance.com
Bridge loan lenders have been fettered by state or federal law; however there are some limitations with regard to interest rates. Other than this there are certain guidelines which regulate the bridge loan borrower.
1. The age limit of a borrower should be in between 18 to 70 yrs
2. The loan is obtained against the value and not against the purchase price of collateral property. This is of significance for the mature developers who often buy the property at a lower price. However this still remains the choice of Bridge Loan Lenders to decide upon.
3. Utmost loan value is 65-70% of the collateral property.
4. The interest rate is generally charged at a higher rate, as high as 15-29%. This is because the time frame of quick bridge loans is very short like a week up to 12 months.
Disclaimer: The entire information provide in this post is a mere piece of information and has been gathered from various sources. This has no legal value of its own.
For any further information you can drop a mail at enquiries@supreme-finance.com
Thursday, November 22, 2007
Bridging Loans
Bridging Loans can save you from loosing your dream property just because you have problems selling your old property which has disabled you raising sufficient funds.
Easy Bridging loans are the convenient, shortest and quickest form of loan which can solve your financial problems at the very time of need. It is of exceptional help in times of temporary shortfall of money. It can be arranged for a week which can extend up to a period of twelve months.
Bridging Lenders usually work very quickly and can arrange the money as soon as they receive notice. In urgent cases money can be received with in 48 hours if the required documentation is in placed. It is an easy form of raising funds as the lenders are more flexible in their terms and conditions as compared to the other forms of loans.
Few notabilities should keep in mind when going for this option. Firstly, this is an expensive option as the rate of interest charge on the principal amount is generally higher because the loans are taken for a very short period. Secondly you need to vouch some security against the loan amount or if we put it in other words, the loan is sanctioned according to the amount of property which you have provide as a security against loan.
Easy Bridging loans are the convenient, shortest and quickest form of loan which can solve your financial problems at the very time of need. It is of exceptional help in times of temporary shortfall of money. It can be arranged for a week which can extend up to a period of twelve months.
Bridging Lenders usually work very quickly and can arrange the money as soon as they receive notice. In urgent cases money can be received with in 48 hours if the required documentation is in placed. It is an easy form of raising funds as the lenders are more flexible in their terms and conditions as compared to the other forms of loans.
Few notabilities should keep in mind when going for this option. Firstly, this is an expensive option as the rate of interest charge on the principal amount is generally higher because the loans are taken for a very short period. Secondly you need to vouch some security against the loan amount or if we put it in other words, the loan is sanctioned according to the amount of property which you have provide as a security against loan.
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