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What is a Bridging Loan UK?

If you have invested in the property market then you must have come across the term ‘bridging loan’. It is a common form of loan that is taken by investors when buying properties. The market for bridging loans has become bigger in the recent years. Bridging loans UK can be used to fund projects that need quick cash. Investors or property owners apply for this type of loan as it is quick and easy to process the loan. Getting long-term loan is a complex and time-consuming process; the bridging loan can fill in the time gap and help you pay for the property so that you don’t miss the opportunity due to lack of fund.

People who buy at auction need this money more than anyone. When you bid for a property at an auction and win the bid, you get very little time, often 28 days only, to pay the price for the property. It is difficult to obtain a mortgage or other forms of the long-term loan within such a short period of time. Those who buy at auction usually have the intention of renovating the property and selling it off quickly. If you have a confirmed seller, then the banks may be willing to give you a loan. However, you will rarely be in such stage.

Usually, people don’t know how quickly they will be able to sell their property after buying it from the auction. So, a bridging loan is a perfect option to support for the period of purchasing the property and selling it out.

Terms of Bridging Loan

The bridging loan is very expensive. The interest rate is 1% per month. The arrangement fee is 1% of the total loan amount. There is also an exit fee of 1%. No matter whether you take the loan for 2 months or 12 months, you must pay these fees. If you need more time to pay back the money, you can roll up the fees and interest payments and include them in the new mortgage. A standard mortgage would be less costly than the bridging loan. High loan-to-value (LTV) mortgage can be an alternative to the bridging loan.

There are more than 150 bridging loan providers in the UK. As there are so many lenders, the interest rates and fees can vary. So, you need to do research thoroughly before choosing a lender. In the UK, you can get a loan from £50,000 to £1 billion. The loan period can be from 1 day to 36 months.  But generally, you will be bridging loan for up to 12 months.

You will need to have your property as a security. The lender will charge for the securities. The first charge is taken when you don’t have any mortgage on your existing property. The second and third charges are taken when the mortgages of the existing properties are not cleared.

Some lenders also take other assets like jewelry, vehicles, gold, art, etc. as security. This type of loan is easy to get and you don’t necessarily need to have a good credit history. So, even if you had cases of defaults, CCJs or Bankruptcy, you will still be able to apply for these loans. In case of bridging loan, you don’t need to pay the interest every month; you will have to pay it once you clear the payment. So, in most cases, proof of your income is not required.

How do Bridging Loans Work?

Bridging loans help people purchase a property before their existing property is sold. It also helps home movers to fill in the gap between the sale date and completion date. These loans are short-term high-interest loans. As it’s difficult to obtain loans from a bank, the number of bridging lenders has increased.

Types of Bridging Loans

There are two kinds of bridging loans: open and closed. In case of a closed loan, the repayment date is fixed. With an open loan, the repayment date is not fixed, but you will need to pay it off within a year. With either type of loan, you will need to show the lender evidence of repayment strategy. You will also need to show that you are purchasing a new property and at what price.

Cost of Bridging Loans

Bridging loans are very expensive. You need to pay high interest and other fees as well. You can pay the interest rate in three ways. First of all, you can pay it as a monthly interest. Second, it can be deferred interest in which you pay all the interest at the end of the month. Third, is the retained interest in which you borrow the interest from the lender and they pay it off later on. There are various fees involved including the arrangement fee, exit fee, administration fee, legal fee, valuation fee and broker fee.

Exit Routes

You should have a realistic exit route. The best way is to sale one or more properties. You can also exit by refinancing.  So, you can take a mortgage and pay off the loan.

Individuals and even international banks can give you bridging loans. They are very easy and quick to get. Your loan can get approved within 24 hours also. Once it gets approved, your property will be valued and the lender will transfer the money to your account. So, if you are planning to buy a property in order to sell it at a higher price after some time, then you can apply for a bridging loan. Even in cases where you cannot apply for a traditional loan, you can apply for the bridging loan. Though this loan is expensive, you will be able to purchase a property on time and think of getting good returns from it.

 

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Save Money with Barter Exchange Websites

You may be finding it difficult to make ends meet and feel as if your money is being stretched as far as it will go. However, cash isn’t the only asset you have. For most of us, the most valuable things we have to offer are our unique skills and specialisms, which could mean so much more to other people. There is value to be extracted from a skilled person whose talents are not required in their own life, but could be priceless to someone else. But how do you turn your skills into a money saving method?

This is where some online research can really help. It’s possible to find dedicated websites where you can exchange unwanted items, goods and services online in a barter exchange system, which more closely resembles basic trading without the need for currency. Usually these online listings are all assigned a monetary value for the sake of clarity and ensuring fairness, but no money has to change hands. You’re not limited to trading physical items, and instead these sites are increasingly being used by people swapping services. Read More

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How Debt Recovery Agents Can Help your Business

Managing your own debts, credit rating and so on can be tricky for some people. If you own a business, it’s probably essential for you to take on some more complex debts, so this is a whole other challenge. Taking it another step further is where even the most organised business owners can come unstuck: handling debts owed to your business by other companies. This area is a minefield and can often feel completely out of your own control. Even if you prepare for the possibility of having debts not repaid on time, it ultimately depends on the other party, even though the consequences might be felt by your own business. To an extent, commercial debt recovery agents can offer a highly valuable service to businesses in exactly this position.

It’s not just banks and loan companies that end up spending much of their time and effort chasing up money that’s owed to them by debtors. Unpaid debts can affect many types of businesses, especially where the customer has had the products or services on credit. Establishing some trust with clients before offering this is crucial, but in many cases there are simply unforeseen circumstances involved. Financial trouble with one company can trigger a chain reaction as a series of debts cannot be paid on time. This can cause no end of problems for businesses who find themselves unable to keep cash flow running properly due to the failings of a customer they trusted to pay on time. Read More

Ideas on how to make money

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Opening up a mobile retail store is also a functioning idea. One may choose to run a business or employ someone else to manage the affairs in case of a limitation on the time aspect. The kinds or retail store ideas are numerous ranging from an organised bake sale at the parking lot to selling fresh fruits in a van to opening up a clothing outlet in the garage. Such jobs can be carried out soon after leaving the office or with other family members in the absence of the person in charge. The workplace can also be turned into an incredible business opportunity. If the office canteen does not feature a variety of its options, or its foods are below the desirable standards, one can decide to sell foodstuffs at work. Snacks such as sandwiches and cakes are the best option as part-time they are easy to prepare and handle and would have a wider preference.

Becoming a tutor or teacher is a good idea. Individuals with the knowledge of extra languages would largely benefit from this opportunity. Creating a few hours every day for this job is not very demanding, and would most definitely guarantee the concerned individuals extra financial backup. Anybody can tutor especially with a college degree.

Spending some extra hours with a neighbourhood kid and equipping them with the appropriate information would make use of free time while at the same time generating income. Cleaning other people’s homes and maintaining their compounds may come with double profits. If one is a neat freak and has neighbours who care less about their surroundings, approaching them with the idea would benefit both parties a great deal. It may start by advertising through offering to provide the service free for the first time so that they can evaluate and make a decision. However, one should first assess the personality traits of prospective clients before approaching them, as some may be too sensitive and find this insulting.

Online and offline job opportunities can be combined to come up with interesting ways of making extra money. Making money from talent is fun yet profitable. One can make crafts like jewellery or pottery and sell them either directly or through the internet. Another idea could be making cards using websites that allow such provisions or simply making them by hand, them featuring them for sale. Opportunities that involve a combination of the internet and direct sales have a wider market, therefore, draw larger profits.

Generally, using talents is the best way to make extra money as people also get to enjoy what they do. Whether it simply a good fashion sense or unique talent in playing the violin, earning money comes with little or no effort at all. Either way, people can also earn some extra pounds through creativity if they have not yet discovered their talents. Very few people would think of hawking tickets although this idea is likely to generate a good amount of money. Nobody can ever miss an idea of creating extra income; it simply comes down to self-assessment. With the right goals and targets in place and a clear vision of a future financial breakthrough, big ideas can be created and fulfilled to the letter.

How to make extra income

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Many people have ended up in career paths that they never thought they would. Such people usually opt to feature other activities that they are passionate about on the side, while at the same time making extra money. Living in a period of harsh economic times that result to frugal living, finding alternative means of making money is of great benefit. Regular employment is ideal for catering for the basic needs; anything else above this requires some extra effort.

The internet has become a very important tool in today’s world. It has created a wide range of jobs, as well as employment opportunities. There are a number of business ventures that one can undertake using the internet. Some sites specialise with sharing expertise or carrying out online research and pay for every bit of the information. The value of the payment varies but the average range is between one and ten pounds. A number of interesting sites also enable individuals to make money as jurors. Such sites display interesting court cases and provide questionnaires, which individuals are supposed to fill in order to give their feedback. The individuals are then paid for their time and opinion.

The musically talented also get to benefit from websites that allow users to create digital mix files. The websites distribute the music files across the internet to factious social networking sites like Facebook, MySpace, and Twitter. The users of these websites earn half of the profit earned from the sales, and a few sites of this kind feature added benefits like points towards merchandise. Numerous websites also feature article and academic writing job opportunities that would most definitely earn one an extra pound or two. Most of the jobs featured online are highly flexible as one can work from anywhere and at any given time. However, the major challenge here is to ensure that the job opportunity is legitimate as the internet is packed with swindlers.

Offline jobs feature a wider scope of opportunities. However, one has to create an adequate amount of time in order to make a good amount of the extra cash in most of the jobs or activities. With unique talent, grammar, spelling and communication skills that are on point one can venture into freelance writing. Unlike most offline jobs, freelance writing is highly flexible. Although it takes time to establish a firm base, this idea can draw large amounts of profits.

How to survive difficult financial times

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Many of us at some point in our life may face a financial difficulty at which point we may need a financial backup plan to help you stay afloat for the month during a crisis. For instance, you may find yourself short on money towards the middle or end of the month, and you won’t be getting your pay cheque by next month. Usually, in this case, people will use their savings as a backup plan however for some of you who don’t have this option, don’t worry, there are other options that you can try.

Sell

If you need quick cash, why not try and sell some of your things that you don’t need or use frequently. You can sell any item or furniture in your house by selling them online or selling them in a car boot sale. You can even post them up in your local newspaper or a local shop for free.

Friends and Family

Try contacting a member of your family or a close friend who may be able to lend you some money for the time being. It’s ideal for borrowing some money for a short period. They also may be more lenient with repaying your borrowed money.

Online loans

You may have a bad credit check especially if you’ve overdrawn in your account or you have made any late payments. Luckily, there are now online companies who can provide you with a loan even with a bad credit check. For most, they will usually just check if you have a current steady job.

Budget

To avoid running out of money, it’s ideal to create a budget or a plan on cutting your spending. Next time you make a purchase, ask yourself if you need the item. Or next time you shop for food, why not check and compare the prices and choose the best deals that can help you save money in the longer run.

Types of loans for businesses

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As a business who are looking for a loan, it’s important to understand what’s available for you. Once you have an understanding of the type of loans, you’ll then be able to figure out which one will work best for your company in the longer run.

Short term loans

Short term loans mean that you will have to repay the loan within a shorter period. Usually, you will need to make a weekly or monthly repayments to be able to pay the loan in the agreed time. With this type of loan, you can only get a small amount to borrow due to the short period of the repayment.

The benefit of acquiring short term loans is that your funds will be immediately available in your bank and you’re more likely to be approved even with a bad credit check. However, there is a drawback where you will have to pay a higher interest.

Small business loans

Small business loans are available to businesses who are looking to start up their company. They are normally long term loans with a low-interest rate. This type of loan could be partially covered by the government if the borrower ended up not being able to make the repayments.

Equipment financing

When buying equipment for your business, you can borrow the equipment value. Depending on the equipment you may have to pay the amount in a short or extended period. The benefits of this are that you’re most likely to get approved quickly and there is less paperwork to be done.

Invoice financing

Invoice financing is when the lender agrees to pay for any of your outstanding invoices with a charge fee. Different companies will have different approval requirements so make sure you check them and see if you are eligible.

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Different Types of Personal Finance

Financing a business through borrowing money is different to taking out loans for personal use, which we will focus more on today, and we’re particularly thinking about people having trouble with a bad credit history. There are a few ways you can build up your credit score again, and different products are available to you from banks although some will be more suitable than others depending on your situation.

There are two different types of loans, secured and unsecured. A secured loan is for a vehicle or home. If you should fail to pay on the loan, the lender will reclaim or repossess the asset. Because they are secured by a physical asset, they are not as difficult to get as unsecured loans.

Loan to Value Ratio

With any car finance or mortgage applications, the lender wants to know that they can get their investment back out of the asset. They will not lend the funds to purchase a car or home until they know the value of the property that will be used as collateral. The closer the borrowed amount is to the actual value, the higher the “loan to value” ratio is. People with excellent credit can typically borrow up to 100% of the value of the asset. Those with less attractive credit can expect to only borrow up to 80% of the asset’s market value. When you are applying for bad credit mortgages, plan on either putting more money down or finding a home that is being sold for less than the market value. Read More

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The facts about bankruptcy

Imagine this worst case scenario for a moment – hopefully it’s not something you have first-hand experience with. The bills are piling up on your doorstep and your creditors are knocking at the door. Unfortunately, you don’t have any money to pay off your debts. Though you seem to be at a dead end, there’s still one stop-gap measure you can use: bankruptcy.

Keep in mind, though, that there are many conditions and responsibilities associated with bankruptcy. It is only an appropriate course of action if you really are desperate to end your cycle of debt. If you’re considering it as an option, you need to be sure of the facts.

In order to be declared bankrupt, either you or your creditor could request for the Courts to make your bankruptcy order. For self-requested bankruptcy, you’ll need to fill out a couple of forms: the petition and the statement of affairs. After completion of the forms, you can pass your bankruptcy petition to your local county court. You’ll also have to pay some fees when you submit your petition. Read More

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Pay Day Loans And Bankruptcy

When you file for bankruptcy protection, you are required to claim all of your unsecured debts. Bankruptcy, however, does not allow the debtor to claim outstanding pay day loans in their filings. Although these loans may be considered small personal loans, they are not viewed as unsecured debts.

What Exactly Is A Pay Day Loan?

Pay day loans, which are often referred to as cash advance loans, are a unique type of lending instrument that has gained popularity in the last 10 years or so. In most cases, the borrower does not have to be approved to receive a loan. The borrower must simply provide proof of income to qualify.

Because these loans must be repaid in less than 30 days, they do not fall under the regular banking regulations that other small personal loans do in the finance industry. In addition, because these loans are backed by a personal check, or your next pay check, they are technically a secured loan. Since these loans are secured by your next pay check, or the fact that you have left a personal check at their business for deposit in the event you do not repay, they will not qualify as unsecured debts in the bankruptcy court. Read More

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Finding The Best Lender

Bad credit can cause serious problems for you when you need to borrow money. Whether you just need some cash for a short-term problem or are trying to buy a new car, your low credit scores can cause lenders to turn you down time and time again. However, regardless of your credit history, you need to be discerning about who you choose to do business with too. Dealing with a better lender will help you keep your finances under control.

When you’ve never taken bad credit loans before, you might be a little nervous about the process. Here are some of the things to look out for when choosing a lender, and examples of good practice that you should find reassuring if you come across them.

Initial Discussions

The lender will want to know about your employment history and will collect some personal information about you. The loans are typically deposited directly into your bank account and the payment will be automatically withdrawn from the same account on the agreed-upon date. Make sure all these areas are agreed in writing properly, so there are no issues later. Transparency is a sign of a trustworthy lender, and they will be looking for the same from you.

Clear Costs

Before agreeing to take out any loan you should know the interest rate, when the payment is due and what the total cost of borrowing the money will prove to be. Reputable companies offering bad credit loans will clearly advertise their fees. They will not try to slip in extra charges but will be completely honest about all the associated fees. Look for bad credit loan lenders who have marked prices so you know exactly what the cost of borrowing the funds will prove to be. Read More

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The UK’s Debt Problems

Do you have debt problems? If so, welcome to the club. Debt has become a part of life for most of us in the UK. It’s nothing new that borrowers, especially those on low incomes with high levels of debt, are falling behind. Rising utility bills, unemployment and unexpected shocks such as divorce were also blamed for causing 7.7 per cent of mortgage borrowers some serious financial difficulties in recent research.

Since the economic downturn of 2008-2009 all over the world, people have naturally been reminded of the potential consequences of letting debt get out of hand. As the global economy has recovered, most countries have been forced to take a look at their spending and prioritise getting their debts organised. Individuals and businesses have also learned to develop their skills at managing money amid the threat of another widespread economic disaster, but are we really able to move on entirely for a life based around debt if we still want to succeed in business and our personal lives? Read More