Short Term mortgage bridging finance uncovered

Let us now explore mortgage bridging finance – we will look at some of the features and benefits of this type of finance. A major thing to consider is the interest rate, 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 troubles. You need to compare the costs with the benefits of getting the finance now.

Let us now explore various times when you may need a business bridge loan. Some Illustrations when you may need to bridge a financial gap are given 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.

Many people don’t apply for mortgage bridging finance because they expect to be rejected, or have already been turned down by their building society, local broker or financial adviser. You may be surprised though as we can accept applications from adverse credit customer even with County Court Judgements.

Now on to the cost a typical case for an amount of £200000 for a 3 month period at 1% would cost you £6000. Obviously each case is assesses on it’s own merits and rates can be lower or higher.