Are Bridging Loans Finance Expensive ?
Bridging finance and loans explored in more detail.
Are Bridging Loans Expensive ?
Many people have the idea that bridging loans are expensive. They have heard that getting this kind of finance costs too much and are therefore put off getting quotes or applying further. The truth is a bridging loan is the only kind of secured financial product that can raise any amount from £25,500 to several million pounds. A typical example of costs would be a £100,000 loan that is charged at 0.76% per month. The interest charged for each month the bridging loan is needed for would be £760.00.
The repayment period can be paid between 1 and 36 months so the monthly amount payable can be made to suit your budget. Bridging finance is therefore more expensive than a mortgage but a cheap way out to solve many problems. A few examples of ways a bridging loan can be profitable will now be looked at.
Example 1 A person sees a house or piece of land for sale at auction. In order to prevent losing the property and deposit a bridging loan is arranged until a more permanent mortgage is finalized.
Example 2 A business has run out of funds and needs to take advantage of a venture like buying some stock at a cheap price. A bridging loan is arranged, the the stock is bought t en sold at a profit. The bridging loan is then repayed and the company makes a healthy profit.
To find out more about bridging finance for domestic or commercial purposes visit http://www.bridgingloanfinance.co.uk
About the Author
Damian is the owner of many finance related websites. Including mortgage, loans and debt advice.
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