The Provision Of Quick And Reliable Bridging Finance
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Posted On :
Nov-10-2011
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Article Word Count :
508
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When finance is required in a hurry for a short period, the answer is bridging finance. This short-term method of borrowing money in a hurry provides an ideal solution until a more traditional form is finalised.
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When finance is required in a hurry for a short period, the answer is bridging finance. This short-term method of borrowing money in a hurry provides an ideal solution until a more traditional form is finalised. The use of bridging finance is no longer only for property deals; it now has a much wider scope as a funding premium for many other purposes as well. In the past, bridging finance was a help when selling a property for the interim period of the completion of the other property sale.
Short Term Finance For Auction Purchase
When buying on auction, it is necessary for the finance arrangement completion to be within a 28-day period; otherwise, the deposit paid becomes forfeited. In a case like this, short-term finance comes to the rescue for the purchase of the property while the conclusion of long-term mortgage finance arrangement is underway.
Property Renovation
Sometimes clients buy property as an investment rather than to live in themselves. The property may need extensive modernisation for it to be comfortable to live in. This is another example of where a bridging loan comes to the rescue, while they renovate and afterwards take out a mortgage for a far more marketable value than what it was when bought.
The cost of a bridging loan
Should the sale of your house fall through and you have found another home that really suits your purpose, then a bridging loan for securing your new home is necessary for opting for, in order not to lose it. However, do remember that short term finance is costly, but worth the extra expense involved, so that you do not have the stress and heartbreak of losing your new home. Do consider the extra financial impact on your budget carefully though, before taking out the loan.
When you take out a bridging loan, the lending company may want your current property and the one you intend buying as security, so, should you default on payment, both of these properties could be at risk. Furthermore, should you require short-term finance because you have problems obtaining mortgage finance this may not be a good solution for you. However, if you are certain of obtaining mortgage finance, then taking out a bridging loan is certainly worthwhile.
The property market
When the property market is booming, selling a home quickly does not present a problem, but, when the market is down and selling becomes more difficult, it is necessary for potential homeowners to consider bridging finance. In general, the bridging loan market has grown extensively in the two thousands, and with the market the way it is, is set to grow even further in the near future.
It is essential for lenders of bridging finance to conduct themselves in a responsible and transparent manner when offering bridging loans to prospective clients. Rates must be at a reasonable level and the clients well screened, to ensure they are able to afford the necessary financial repayment of their loans.
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Article Source :
http://www.articleseen.com/Article_The Provision Of Quick And Reliable Bridging Finance_102660.aspx
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Author Resource :
If you’re looking for a fast bridging loan , mayfairbridging.com has a reputation for speed and reliability.
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Keywords :
Bridging Loan, Short Term Finance, Bridging Finance, Bridging Loans,
Category :
Finance
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Loans
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