Bridging Loans For the Short -Term

May 8, 2010 - PRLog -- Though you'd like to be prepared when you're buying a new property, a house, have a financial emergency or need to bolster your business, you can't always be.  That's where bridging loans come in.  They're loans designed to give you temporary monetary assistance in the short-term to carry you through the mini-financial crisis.  While they have their risks, they also have the benefit of giving you time to recover and give you enough money for purchasing what you need.

These loans are best-suited for buying new homes when your old one hasn't yet sold, or for temporary business or financial problems.  The amount of your bridge loan will sit on how much money you need, what it's for, who you're lending from and how much money you earn.  It can secure a total purchase of your property or home, when you're unable to do it independently.  It also is a plus that you pay it off in a short time, because you won't have the debt hanging over your head for years.

A bridging loan has its risks, that you as the borrower will have to consider carefully.  Since it's short-term, the interest is very high and the repayment period is much shorter than a mortgage (bridging loans are also known as 'short-term mortgages').  The longest period is 12 months, but the shortest could be just a week.  You also pay monthly in lieu of yearly rates, which can be difficult for the borrower to keep up with the payments.  

You can acquire Bridging Loans at http://www.chumsfinance.co.uk/bridgingloans.asp

The amount of time you need to repay is directly related to how much you pay- the longer the time, the more you have to pay.  The rates are a few percentage over rate, and the most you can expect from your lender is just 70% of the full worth of your property.  You also have to add in to your costs the amount of the bridge loan and the amount of your mortgage- whether or not you can afford to pay both if you have to.  Getting behind on your repayments can result in repossession, with the lender taking over your property or home.

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