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Creating Your Own Wealth and Managing Your Finances
Personal finance is a scary subject for some people because it conjures up all sorts of personal fears about budgeting, managing investments and buying Vs renting a home. Fear and anxiety are common responses to the topic of personal finance...
Finance Your Small Business: So Much Money – So Little Time
$47.4 million venture capital funded projects today. $86.4 million yesterday. $51.4 million the day before. These amounts are not made up. They are actual numbers from actual reported venture capital funding. I get these notices emailed to me day...
Refinance To Save Your Hard Earned Pounds
Have you heard of refinance? What it isn’t new for you. But, it was newer to me. In fact mortgages too were newer to me. I had considered it my fate to be stuck to the high interest mortgage. It was refinance (commonly known as remortgage) that gave...
Refinance Your RV Loan and Save Thousands
How much can I save by refinancing my existing RV loan?
The answer to this question depends upon several factors. It would depend on how much you could reduce your interest rate. It would also depend on your unpaid loan balance. You would need to...
Using the internet to manage your family’s finance
The effectiveness of managing family finances has never been more significant, as parents struggle to find a balance between work and family life. A recent study by Mother and Baby magazine has found that new parents are getting less sleep than...
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Have you ever considered Bridging Finance
Bridging loans can be used for a wide range of uses and put simply, it is a very convenient way of raising finance against property within a short period of time.
Bridging lenders have the ability to move very quickly and are generally more flexible in terms of the condition and type of properties they will lend against. They will also tend to look more towards the property as opposed to the borrower and they have the ability to lend against value instead of purchase price.
Lending against value, as opposed to purchase price can have significant benefits for experienced developers/property experts who are often able to identify a bargain or perhaps create value by buying an option to purchase at a lower price and then securing a planning consent, resulting in an increase in value by the time they complete the purchase.
Bridging loans are very useful tools when purchasing a property in very poor condition and non-income producing, where High Street funds will probably not be readily available. A good example is the purchase of a derelict bungalow, which has the potential for demolition and the construction of 2 or 3 modern units. As long as the worst case scenario is covered, in that the bungalow can be refurbished and sold or refinanced to repay the bridging loan, the borrower can use the bridging
loan period to apply for planning. If planning is obtained then they have the option to stay with the bridging lender to complete the development funding, or alternative finance can be arranged through the High Street or a specialist development lender.
Using an experienced broker in the above circumstances can have major advantages, in ensuring that the costs and right lender balance is maintained. For example not all bridging lenders offer development finance, however in a small scheme with a short development period it could be more cost effective to stay with the same lender, even if the interest rate is higher, due to savings on valuation, legal and lenders fees.
Bridging loans can come into their own for auction purchases. Lenders have the ability to act extremely quickly, so the time constraints posed at auction are not a problem. Indeed a 14 day completion is becoming quite common and provides the luxury of knowing that you can bid safely at auction, knowing that the funds will be available on time and just as importantly with the minimum amount of fuss.
About the Author
Anthony Harrison is the Managing Director of Capital Mortgage Solutions, a specialist mortgage broker helping people with adverse credit problems. Visit them at
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