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Who Needs Business Bridging
Loans ?
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A business bridging loan is available for those with commercial loans and properties that need immediate funds. This type of advancement is available to those residents of the UK who are over the age of 18. It is often needed when the date of the purchase and date of the sale do not sync. The advance is a short-term credit designed to provide the funds needed to complete the purchase and will be paid back within a designated time frame, usually about 6 months.
The business bridging loan offers the opportunity to get funding rather quickly. The application process is short as well as is the approval process. Not as much information is needed for the credit processing because the new mortgage is used in consideration and has just been completed. The advancement uses the new property as the security on the money borrowed and therefore the property can be foreclosed on if the payments are not met in a timely manner.
The amount of money that can be obtained for an advancement of this type is usually up to 85% of the property value. The less money needed to be borrowed the better. A business bridging loan charges higher interest rates than most traditional advances, due to the specialty nature of the credit. There are other charges to be aware of as well, such as non-refundable administrative and processing fees.
Keep in mind that an advancement of this type is designed to be for a short-term. This means that the advance is given with the understanding that once the sale of the other property is complete the funds will be available to repay the credit. For this reason, often the credit repayment plan does not start for 2 or 3 months after you have borrowed the money. Then, expect large monthly payments, to pay the credit entirely within the time allotted, usually less than a year.
A business bridging loan may be a perfect solution to a situation that would normally preclude you from proceeding with the new purchase. The advancement is a great way to get the funds you need immediately. Keep in mind that you must be able to repay the amount borrowed in its entirety within 6 months to a year.
Bridging
Loans
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| Who's Suited |
- Purchasing
property at auction.
- Property refurbishment or conversion.
- Chain breaking mortgages.
- Homeowners who have been or about to be repossessed.
- Funds required within days not months.
- Short-term finance for business purposes.
- Commercial property purchase and refinance. |
| Features |
- 100% LTV
Available.
-Market leading rates from 0.75%.
-1st charge or second charge equity release. |
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