Compare mortgage bridging finance before you apply !
A detailed look atmortgage bridging finance
The main features of mortgage bridging finance - This form of credit is not for every one hopefully this article can elaborate. When weighing up lending companies a major factor is the lenders interest rate payable. The main area you should be concerned about though is the reason why you need a mortgage bridging finance and whether getting one is going to solve your dilemma. You need to compare the costs with the benefits of getting the finance fast.
We will now look at several examples on when and why a bridging loan could be used. Some times you may need bridging finance are examined below:
Circumstance 1 - A business needs to raise cash fast - In this instance a business may need to buy out a competitor or expand it's existing business and it doesn't have time to wait for a commercial mortgage or business loan. Bridging finance can normally be raised in as little as 2 or 3 days.
Circumstance 2 - A company needs to purchase stock - If a companies liquidity is low and it doesn't have enough to buy a bargain lot of stock then mortgage bridging finance can be used a temporary financial fix.
Circumstance 3 - Purchasing a property at auction - With land and property auctions it is normal that transfers of funds take place very shortly after an auction ends. If you have no commercial mortgage or loan in place then bridging finance is a perfect short term solution.
Circumstance 4 - Venture capital - Many entrepreneurs us this type of credit to take advantage of deals where money is needed now not in a couple of weeks. Because of the speed that these loans can be arranged in they are perfect for this type of application.
Circumstance 5 - Any legal reason - If you have another use for commercial, domestic or any reason whatsoever then you'll be glad to know that you can use this type of credit for any reason provided that it is legal.
From the above you can see the kind of uses for mortgage bridging finance, but the uses are as varied as the people who need the finance. The best thing to do next is to get quotations for bridging loans, if you think one could help you. Check the links at the bottom of the article for further information.
One of the main concerns for people is the cost to give you an indication lets assume that you need a bridging loan of say £200000 for a 3 month period at 1% would cost you £6000. Rates can vary depending on personal circumstances.
Many people don't apply for mortgage bridging finance because they expect to be rejected, or have already been turned down by their normal lender. You may be surprised though as we can accept applications from customer with problem credit historys.
If you think a bridging loan could help you then visit Bridging Finance
About the Author
Damian is the owner of many finance related websites. Including mortgage, loans and debt advice. For more information visit Bridging Loans Finance
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