Latest News

Latest News from Bridging Loan Now - New bridging loan lender enters the market - Tuesday 9th February 2010

One of these firms is Levene Commercial Finance, which has launched its own bridging loans line. The firm’s website says that it specialises in large bridging loans, ranging from £50,000 to £10 million, whilst bridging loans of up to £15 million can be considered for experienced property professionals.

Gary Starr, head of business development, commented: “Bridging loan finance is a very useful financial tool in today’s current market to take advantage of the opportunities of discounted property.

“With activity rife, now is a good time to buy and we can help. Like a lot of other bridging loan companies we go off the open market value and can lend 100% of the purchase price. Rates are competitive and, unlike certain bridging loan companies, we don’t charge upfront fees disguised as legal costs.”

Latest News from Bridging Loan Now - Specialist bridging loan lender Cheval reintroduces broker training seminars for bridging loans - Thursday 4th February 2010

The bridging loan seminar is aimed at those financial intermediaries who are unfamiliar with bridging loans and the opportunities that it can provide for both clients and introducers, as well as for those who simply want a refresher about bridging loans.

Cheval’s National Sales Manager, Gareth Lewis, said: “I am very excited about hosting our first bridging loan seminar of the year. While the last two years have been difficult for intermediaries and lenders, there are definite signs that activity is increasing. As a result, one of Cheval’s top priorities for 2010 is to introduce and welcome those brokers that have never used bridging loans before, as well as re-familiarising those brokers who are experienced in bridging loan finance.”

Latest News from Bridging Loan Now - AMI supports stamp duty proposals - 3 February, 2010

Robert Sinclair, AMI Director, said: “The current Stamp Duty regime distorts the market and prevents first time buyers from getting a foot on the property ladder.”

“The Stamp Duty holiday last year was a welcome piece of common sense from Government. And the Conservative plans to raise the Stamp Duty threshold to £250,000 would provide a welcome boost to many first-time-buyers and also provide assistance to first time movers in many parts of the country. This would do much to support the housing market.”

”However, what we urgently need is a more fundamental review of this antiquated tax.”

This could also have a general knock-on effect on other forms of finance being more readily available such as secured loans, business loans and bridging loans.

Latest News from Bridging Loan Now - Record bridging loan completion levels for specialist bridging loan lender Tiuta

The specialist bridging loan lender says the amount was 28% higher than its previous record set in October 2007. smashing its previous best monthly bridging loan completion figures by 28%.

During December Tiuta also committed to donating a small percentage of income derived from all business introduced within the month to Great Ormond Street Hospital.

Guy Garrard head of business development at Tiuta, said: "The amount of bridging loan business received in December was frankly quite staggering which was not only good news for us but also provided a nice windfall for Great Ormond Street Hospital. We, as a company, have worked hard to make ourselves a brand that intermediaries trust and these figures have certainly capped off a great year for Tiuta. We are looking forward to building on some very solid foundations by continuing to innovate and have a number of exciting plans in the pipeline for 2010."

Latest News from Bridging Loan Now - Bridging loans explained

Bridging loans are normally arranged for a short period of time (1 day to 12 months) and often paid off from other funds, such as a mortgage when they can be arranged.

Bridging loans have been used to fund properties bought at auction for years due to the flexibility offered by bridging loan lenders; they can arrange for funds to be available in 24 hours, unlike a mortgage which may take 4 – 8 weeks to arrange.

The majority of bridging loans are granted on the basis that there is sufficient equity in the property to be used as security and bridging loan lenders often make sure that there is a clear method of repayment. The repayment method could be from refinancing, from the sale of the property or other method of repayment. Generally bridging loan lenders will require at least 25% (they lend up to 75% of the value of a property) equity to remain in the property after their loan is secured.

Bridging loans are often used in residential transactions when the sale of a main residence or other property has been delayed and the new purchase must complete before the sale of the existing property. A bridging loan may be used in this situation because A) the money is required quickly B) a second residential mortgage may be difficult to obtain if a residential mortgage is already outstanding on the property being sold.

Latest News from Bridging Loan Now - Bridging loan basics

Bridging loan finance meets the needs of many individuals and businesses today. They are rapidly loaned to qualified applicants and then usually repaid within one to three months, though many are offered for terms up to a year.

Short-term bridging loans often come into play when a business has a cash flow problem or sees the need to make an investment but lacks the resources to do so. There may be a contract that will be honored in due time and payment made to the business but the money is needed now.

If the business can ensure repayment, a bank or other financial lending institution may choose to issue a bridging loan for the business’ capital investment, venture capital, stock acquisition, production, or a host of other needs. The short term bridging loan is just that: a means of moving over temporary financial needs to help the business reach the other side.

A bridging loan is also popular in the housing market. Homeowners who are selling a property can utilize a short-term bridging loan to pay for a new home while the old one is still on the market.

Living expenses can be covered while a sale is pending. The bridging loan can also be used for unexpected repairs that a buyer of the old home is requiring. Once the old home is sold the bridging loan will be paid in full.

Urgent needs for money sometimes occur.

Financial setbacks can happen to people for a variety of reasons and a short-term bridging loan can help smooth out the financial needs until the individual is back on his or her feet.

This type of finance can be extremely helpful in the short-term but it comes with a price. A bridging loan can carry high interest rates and sufficient collateral such as an automobile, home, business property, or other valuable asset will have to be put on the line. If the bridging loan isn’t repaid in the specified amount of time the collateral is subject to seizure and the borrower will be in worse financial shape than before.

Bridging loans are effective but only if repayment can be made.

If you require finance in the form of a Commercial Mortgage, Business Loan, Residential Bridging Loan or Commercial Bridging Loan, Secured Loan or Personal Unsecured Loan, please give us a call at Choose Loans on 0845 862 0524 or click Apply Now and complete our simple 30 second enquiry form and one of our experienced loan advisers will call you back to discuss your loan requirements.

Latest News from Bridging Loan Now - The benefits of bridging loan finance to your cash flow

No matter who you speak to in the business world and what sort of business they happen to run, one of the most important elements to being successful is having the resources to get things done when they have to be done. What does this mean in a more practical sense?

It means that when you see an opportunity, you and your business have not only to make a decision on that opportunity, but also have to obtain the cash flow to make it work. With cash being as tight right now as it has ever been, this has become quite an issue for many business owners. But it does not have to be that way. With many of the bridging loan options out there today, you can have liquidity when you need it..

In order to understand how it can help you, one has to fully understand what a bridging loan is. First and foremost, it is the sort of help that businesses get when they have short term cash need, but don't have the ability to draw from their own means to fulfill this need.

This is much different from a typical business loan because the risk is lower. With a normal business loan, the lender is assuming some risk, because the repayment terms are rather fluid and there is always the chance that your business will fail to meet its end of the bargain.

With a bridging loan, however, we are talking about a much shorter loan term and more specifically, we are talking about companies who have set times to benefit from cash flow. Take, for instance, a company who might only have available cash on hand at the end of every month.

That is when the majority of their accounts make payments and during the middle of the month, they don't have cash to flow around. What happens when a good opportunity presents itself, or when a problem arises that can only be fixed with an appropriate amount of funding? In this instance, bridging loan finance options are there to help. Interest will, of course, be paid, but it won't be as much as most business loans will require. Instead, the low risk nature of the bridging loan will dictate that it remains relatively affordable. In short, this is like a payday loan for businesses, with the huge exception being that this type of bridging loan brings cash flow without the exorbitant interest rates that go along with individual consumer payday loans.

A bridging loan will involve different terms and applicable rates, but across the board they are a solid option.

If you are struggling to raise the necessary finance required to expand your business or even just to sustain it and keep your head above water, why not give us a call at Choose Loans on 0845 862 0524.

Choose Loans trading as Business Loan Now and Bridging Loan Now specialise in arranging business loans in the form of commercial mortgages and commercial remortgages and bridging finance in the form of bridging loans and commercial bridging loans.

Latest News from Bridging Loan Now - 10 December 2009 - Bank holds base rate at 0.5%

The Monetary Policy Committee voted to continue with its programme of asset purchases totalling £200bn financed by the issuance of central bank reserves.

The MPC says that it expects that the programme will take another two months to complete and the scale of the programme will be kept under review.

Latest News from Bridging Loan Now - Boulger's blog: Margaret Beckett displays her ignorance of the housing market

In response to a question about the Lib Dems’ proposed Mansion tax, Margaret Beckett, after saying she couldn’t believe the figure but would share it with us anyway, said that the Land Registry figures showed that there were only 86 properties worth over £2m.

It had to be pointed out to her that that the Land Registry figures were quoted in thousands and therefore one had to add three noughts to the figure.

It is not only pretty stupid to quote a figure on national television that you say you don’t believe, but in particular most people’s common sense would have told them that there must be more than 86 houses in the country worth more than £2m.

It is a damming indictment of this Government’s understanding of the housing market that someone who was Minister of State for Housing and Planning until as recently as 5 June this year has so little understanding of such a basic fact relating to the housing market.

The other rather amusing point was seeing Kirstie Allsop get the better of Vince Cable in the discussion on his Mansion tax.

Mortgage Strategy article by Ray Boulger

Latest News from Bridging Loan Now - A boom for buy to let?

Buy to let investors are beginning to fight their way back into the property market as prospects for the sector improve following a sustained period of restricted financing and, until recently, weak rental yields. With banks finally increasing their buy to let lending in quarter three, a period of sustained investment in the industry is set to follow.

Many professional landlords still have liquid cash available to invest and are now likely to look to expand their portfolios over the next few months, buying property at the more affordable levels before prices climb too far. Investments in other asset classes continue to under-perform, and as a result, city bonuses will also be channelled into investment property, bolstering the buy to let sector further.

Investment in the sector will be underpinned by strong and rising tenant demand for lettings accommodation, as homeowners and first time buyers turn away from the sales market and will fuel heightened activity in the property market as a whole.

Phil Calderbank, Director at lettingsearch.co.uk, comments:

“Mortgage lenders are once again recognising the important role lettings has to play in the property market and as investors with liquid cash make a move to take advantage the affordable property, strong tenant base and improving returns, I think we can safely say that the recession is now over for buy to let.

“Many so-called reluctant landlords have discovered a new income stream and we believe some of these people will stay in buy-to-let and even expand their portfolio. This will further strengthen the buy to let sector.

“The current rate of house building cannot meet the demand from potential buyers, and while lending to homeowners remains scarce and the uncertainty over unemployment looms on the horizon, we will see people choosing lettings from every rung of the ladder.”

If you need to raise finance for a commercial mortgage or business loan, commercial bridging loan, or any other form of business finance such as a buy to let mortgage, overseas mortgage, asset and cashflow finance, equipment leasing and invoice factoring, or acquisition and development finance, please give us a call at Business Loan Now on 0845 862 0524 or click Apply Now and complete our simple 30 second enquiry form and one of our friendly business loan advisers at Choose Loans will give you a call to discuss your commercial finance requirements.

Secured Loan Now, Business Loan Now, Bridging Loan Now, Debt Rescue Now and Choose Loans are all trading names of M60 Mortgages Ltd and specialise in arranging secured loans, personal unsecured loans, homeowner loans, home improvement loans, car finance loans, debt consolidation loans, residential and commercial bridging loans, commercial mortgages and business loans, and other forms of business finance such as buy to let mortgages and overseas mortgages, asset and cashflow finance, equipment leasing and invoice factoring, or acquisition and development finance using whole of market high street banks and specialist finance lenders.

We also specialise in arranging debt management plans and IVAs (individual voluntary arrangements).

Latest News from Bridging Loan Now - Bridging loan lender Tiuta to launch mainstream mortgage product

Details of the product are yet to be revealed ahead of the product’s formal launch next week, but the product will represent a significant shift in focus for the company known primarily for its bridging loan lending activities.

The product will only be available through Savills Lending Solutions and Omega.

Guy Garrard, head of business development at Tiuta, says: “By launching this mainstream intermediary mortgage product at the Mortgage Business Expo it shows that our company focus is extending out past bridging loans into other areas.”

The move follows Tiuta’s recent launch of a three year buy to let fixed rate deal for Houses in Multiple Occupation in September, as well as a secured loans proposition back in June.

The Mortgage Business Expo is being held at the Olympia exhibition centre in London on November 11 and November 12.

Latest News from Bridging Loan Now - UK business confidence highest for 18 months

The topline figures show:

- More than half (56 percent) of senior executives questioned by Opinion Leader Research on behalf of KPMG claim to have already seen signs of recovery in the UK economy, with 47 percent seeing green shoots in their own sectors.

- Almost a fifth (19 percent) actively view prospects for UK business over the next 12 months as 'good' or 'very good,'compared with fewer than one in ten (9 percent) who felt such optimism in the previous quarter.

- Conversely, the number of executives who view prospects for the economy as 'bad' or 'very bad' has more than halved from 54 percent last quarter to 24 percent.

Yet despite the apparent increase in optimism, there is still a cold wind blowing through the heart of British businesses, with 21 percent expressing grave concerns about a continuing fall in demand for their products or services. Indeed, falling sales is now the most pressing issue facing senior executives, overtaking credit and funding issues as the biggest business concern.

Malcolm Edge, head of markets for KPMG in the UK, commented:

“While at first glance these statistics do look encouraging, we must not forget that opinion is still heavily divided as to whether or not the economy is out of intensive care. It's particularly interesting that in spite of certain economic indicators pointing towards modest growth in the third and fourth quarters of this year, the majority of senior executives do not expect the economy to come out of recession for at least another seven to 12 months; perhaps because there is, as yet, no end in sight to falling consumer demand.

“However, for those firms who are concerned about their sales pipeline, there is nevertheless a silver lining to be found. The continued weakness of the pound against the dollar and the euro presents a massive opportunity for British firms to look beyond these shores and tap into overseas markets, so it's extremely heartening to see that expansion into new markets was the most commonly cited tactic to address business concerns.

"At heart, British businesses are an entrepreneurial bunch, so taking advantage of such opportunities for growth will be an important catalyst in sustaining confidence levels across the economy as a whole.

“Looking at the longer term prognosis for the economy, it is perhaps surprising that only 21 percent foresee a 'double-dip scenario', where the economy slips back into recession after a brief period of growth. Rather, the vast majority of respondents believe the recovery will be long and slow, whereby we bob along the bottom of the cycle for three to five years before substantial growth is seen again.”

Suggestions of a 'double-dip' recession have been raised by a number of economists who predict both an end to recent increases in house prices, and more pain to come in the private sector when the Government starts to make its much-anticipated cut in public spending in 2010. However, there could be a further sting in the tail as companies who are eager to capitalise on any early signs of growth attempt to scale-up too quickly.

Malcolm Edge explains:

“The old adage that twice as many companies fail on their way out of recession than do going into it certainly rings true. Over the last 12 months, companies have worked tirelessly to get to grips with their working capital, with many firms destocking in response to declining demand.

“However, the concern is that when trade does start to pick-up again, businesses will simply not have the cash available to finance any new growth plans. Although the majority of banks are claiming to be open for business, the fact remains that at present, lending will only happen in specific circumstances and under very strict guidelines.

“The temptation to over-trade or scale up too quickly can be all-consuming after a lengthy period of inactivity, so there is a certain irony in the fact that this desire to 'get things back to normal' can often be the straw that breaks the camel's back. Companies therefore need to resist the urge to go in with all guns blazing, and instead, keep up all those good habits that they have relied upon to see them through the downturn.

"For instance, the use of rigorous forecasting will not only assist an organisation in managing its cash flow during the final throes of the downturn and demonstrate good practice to funders, but it will also provide a sound base on which to monitor demands on working capital.”

If you need to raise finance for a commercial mortgage or business loan, commercial bridging loan, or any other form of business finance such as a buy to let mortgage, overseas mortgage, asset and cashflow finance, equipment leasing and invoice factoring, or acquisition and development finance, please give us a call at Bridging Loan Now on 0845 862 0524 or click Apply Now and complete our simple 30 second enquiry form and one of our friendly business loan advisers at Choose Loans will give you a call to discuss your bridging loan requirements.

Secured Loan Now, Business Loan Now, Bridging Loan Now, Debt Rescue Now and Choose Loans are all trading names of M60 Mortgages Ltd and specialise in arranging secured loans, personal unsecured loans, homeowner loans, home improvement loans, car finance loans, debt consolidation loans, residential and commercial bridging loans, commercial mortgages and business loans, and other forms of business finance such as buy to let mortgages and overseas mortgages, asset and cashflow finance, equipment leasing and invoice factoring, or acquisition and development finance using whole of market high street banks and specialist finance lenders.

We also specialise in arranging debt management plans and IVAs (individual voluntary arrangements).

Latest News from Bridging Loan Now - FSA fails to understand the mortgage market - 20 October 2009

The Financial Services Authority’s Mortgage Market Review was published yesterday and although you are not at risk of getting autism from this MMR there will be a significant amount of consumer detriment if the report’s proposals to ban self certification mortgages are adopted.

Out of the UK’s 10 million residential mortgages about one million, or 10%, were arranged on a self-cert basis and a large proportion of this sizable minority of borrowers are at serious risk of being denied the opportunity to ever get another mortgage, even when conditions in the mortgage market improve.

Thus they will be condemned by the FSA to stay in their current home when they want to move, unless they are prepared to sell up and rent. They will also be denied the opportunity to remortgage and thus be left to the tender mercies of their current lender.

For many who don’t want to move this will not be a problem in the short term as many will revert to a reasonable variable rate when their initial deal finishes. However, when the time comes that they want to switch to a fixed rate they will only be able to do so if their current lender is prepared to offer them a product transfer rate.

Many self cert borrowers will have their mortgage with a lender which has exited the market and will have no choice but to stay on their revert to rate. If they are not able to switch to a fixed rate when they want to, purely because of the FSA’s ban on self cert mortgages, this obviously increases the risk that their mortgage will become unaffordable if interest rates increase too steeply.

If this results is them going into arrears and, worse still, being repossessed, the FSA will be culpable.

One of the FSA’s statutory duties is to protect consumers, not increase the risk that their mortgage becomes unaffordable!

Part of this full frontal attack on self cert mortgages, which is a perfectly valid product for some borrowers, seems to be based on a major misunderstanding by the FSA of income non-verified mortgages. In the regular returns the FSA requires lenders to submit there is a requirement to specify the proportion of mortgages they sold which were income non-verified.

In asking for the information on this basis, rather than asking for the proportion of self cert mortgages and the proportion of mortgages which were fast tracked, I can only assume that the FSA did not understand the difference between the two. If it did surely it would have asked for two separate figures.

In the spirit of helpfulness I would advise the FSA that self cert is a product where the lender guarantees not to ask for proof of income, whereas fast track is a process where on a mainstream mortgage the lender exercises their right not to ask for the normal paper proofs because they determine that the mortgage is low risk on the basis it has a low LTV, a loan size below a certain level and the applicant’s credit score was good.

Lenders may not (yet) be able to get applicants’ DNA from the credit reference agencies but they can and do get an awful lot of financial and other information.

It is on this basis that ID verification can often be done electronically and sufficient information obtained for the lender to safely cut down on the paper proofs required.

If the credit score is not very useful in making this decision why do lenders, the FSA and the rating agencies all regard it as being so important?

The FSA really can’t have it both ways - either the credit score is a valid tool in assessing mortgage applications or it is not. If it is but the same paper proofs are required for an applicant with a high score as someone with a low score what purpose is it achieving?

On the Today programme Hector Sants, chief executive of the FSA, said: “in the boom times self-cert mortgages were around half of those offered.” This claim is complete nonsense and it is very worrying that the FSA is trying to set policy on the basis of such a serious misunderstanding. It is true that about 50% of mortgages were income non-verified, but only about 10% were self cert.

The arrears record on fast track mortgages is generally better than average, which is exactly what one would expect if the system is working properly, because they are the mortgages the lender has identified as low risk.

This compares with self-cert mortgages having an above average arrears record, which again is exactly what one would expect. This extra risk needs to be priced properly, which wasn’t always done in the run up to the credit crunch, but with correct risk based pricing self cert mortgages are a perfectly valid option for borrowers.

I will leave you with this thought. Over 50% of the population don’t understand percentages but I was shocked to discover that this 50% includes the senior management at the FSA.

No doubt the MMR will have been checked and double checked before being signed off for release but on page 47, section 4.47, it says that “property values increased by almost 300% in the decade before the onset of the financial crisis.”

This didn’t look right to me and so I checked it out with the Nationwide house price index. Sure enough from Q3 in 1997 to Q3 in 2007 this reported an increase of 203%. I suspect the wise heads at the FSA thought that a 3 fold rise in property prices was equivalent to a 300% increase. Oh dear!

Ray Boulger - Boulger's Blog - Mortgage Strategy

Latest News from Bridging Loan Now - 08-Oct-2009 - Bank holds base rate at 0.5% and continues with QE

The MPC say it expects the announced programme to take another month to complete and that the scale of the programme will be kept under review.

As at October 1 the Bank has spent over £158bn on its asset purchase programme.

Yesterday Roger Bootle, the managing director of Capital Economics, predicted that interest rates would stay at their current level for the next five years.

Ben Thompson, director of mortgages, at Legal & General says: "There's been a notable shift in popularity towards tracker rates as expectations of a long period of low interest rates become entrenched amongst borrowers."

Figures from L&G Mortgage Club show that almost one in five mortgages applied for through the club were tracker rates, up from 12% in the previous quarter.

Thompson says he expects this figure to have risen by the end of the year.

He adds: "We expect the MPC to hold interest rates steady for some time but rises are inevitable, so borrowers must be prepared."

Ray Boulger, senior technical manager at John Charcol, says: "“Today’s no change decision may be a bit of a non-event but there is at last some action back in the mortgage market.

"September saw the usual seasonal upturn and over the last few days we have at last started to see some real competition from lenders, albeit primarily for lower LTV business.

"Although the cost of fixed rate mortgages has fallen a little over the last month most still look expensive in relation to tracker/discount rates, some of which have also fallen during the month.

"Thus variable rates continue to look more attractive for those borrowers who don’t need or want the security of a fixed rate."

Latest News from Bridging Loan Now - Bank holds base rate at 0.5 per cent

The Bank of England monetary policy committee (MPC) has held the base rate at 0.5% for the sixth month running.

The decision was widely expected by the industry with experts predicting the rate will remain at the all-time low until next summer.

The bank also said it will continue with its £175bn quantitative easing scheme but will not extend it this month. In August the Monetary Policy Committee injected £50bn into the economy to create up to £175bn on the UK's balance sheet.

Ray Boulger of leading UK mortgage broker John Charcol said: “It seems probable that bank rate will remain at 0.5% until well into next year and that any policy changes announced by the MPC will focus on its QE programme or involve some other radical new policy.

“Seasonal factors resulted in August being, as usual, a relatively quiet month for mortgages - even by this year’s standards - and it was the first month for a while that some lenders failed to hit their lending targets. This, coupled with lower Libor and swap rates, has resulted in some lenders making modest cuts in their mortgage rates which can only be good news for consumers.”

Latest News from Bridging Loan Now - Low interest rates possible until 2013

The Centre for Economics and Business Research (CEBR) said the reality of a deep recession and sluggish recovery has dawned upon the MPC, recognising that insipid growth and downward pressure on prices is the greater concern.

The Bank’s central expectation is for inflation to dip below 1.0 per cent and the CEBR said this implies that on the current scale of quantitative easing and market expectations on interest rates inflation will continue to undershoot the 2.0 per cent target through to 2013.

The CEBR said: “This implies three things. First, more quantitative easing is on the cards – our rough and ready estimate is a further GBP 50 billion. Second, the Bank is clearly not expecting to roll back the QE at all soon. Third, interest rates are likely to remain lower for longer than the markets expect, even predicting Bank Rate will stay at 0.5 per cent until the end of 2011.The more bearish medium term growth projections than those incorporated in the Budget imply a much larger fiscal deficit than the Chancellor has admitted to.

The Bank warns that stabilising the ratio of debt to GDP ‘will require some combination of lower government spending and higher taxes, as a share of GDP.’

Latest News from Bridging Loan Now - Bank extends QE plan to £175bn

The Bank had previously earmarked £125bn to spend on buying up bonds to boost the money supply.

But today’s decision boosts the programme by £50 billion to £175 billion.

The Bank says that the world economy remains in recession, and despite signs output in the UK’s main export markets is stabilising the UK recession appears deeper than first thought.

The MPC says that in order to keep inflation on track to meet the 2% target keeping the base rate as it is was the most appropriate action.

It expects the announced programme to take another three months to complete and says it will keep the scale of the programme under review.

Prior to today’s meeting the Bank governor Mervyn King and the chancellor Alistair Darling exchanged letters about the expansion of the Asset Purchase Facility, commonly known as quantitative easing.

The Treasury previously had set a limit of £150bn to spend on buying up bonds, but has now authorised the higher limit of £175bn.

Ben Thompson, director of mortgages at Legal & General, says: “The Bank has not yet put its cheque book back in the drawer, having already comfortably outspent Manchester City 100-1.

"While Mark Hughes of Man City will want instant results on the pitch, King will be looking more for a steady turnaround at a manageable pace.

"Is there a risk, however, that the asset purchase programme has gone too far and will stoke the fires of inflation too much in coming years?

"Longer term fixed rate mortgages are already pricing in big rate rises to come over the next five years. Let’s hope that the quantitative easing catapult doesn’t fling us too high.”

And Ray Boulger, senior technical manager at John Charcol, adds that the comment in the MPC’s statement that, “in the United Kingdom, the recession appears to have been deeper than previously thought” is also highly relevant.

He says: "As far as the mortgage market is concerned there is little evidence that the QE programme has resulted in any additional lending so far, but it is, of course, entirely possible that without QE mortgage lending would have been even more dire.”

Latest News from Bridging Loan Now - Bridging loan enquiries rise as investors flock to property auctions

Bridging loan lenders have reported that banks are becoming more and more hesitant to lend on properties sold at auctions, as they have often been left uninhabited or require some renovation work, causing them to be down valued by cautious valuers.

This can present a tricky situation for the property investor who has already paid the deposit on an auction property, but has been left high and dry by mortgage lenders backtracking on the agreement in principle.

Bridging loan finance has always been linked to buying property at auction, but as banks increasingly drag their heels over new lending, short term bridging loans have taken on an even more central role in the auction house.

Maeve Ward, from bridging loan lender Link Lending, says: “We receive around 25 enquiries a week from investors looking to purchase properties at auction, as traditional lenders are often unable to process a mortgage application in the 14-28 days that buyers are given to complete the transaction.

“Most investors will look at the auction catalogue before the date of the auction and do their research, setting themselves a maximum threshold before coming to us. We can then provide them a quote in principle, which they take to the auction giving both the auctioneers and the client the confidence that the transaction is going to complete subject to satisfying all underwriting terms.

“The main benefit of using bridging loan finance in buying an auction property is speed. It will never be the cheapest option, but one which can be commercially correct in securing an opportunity in the short term which might otherwise have been lost.”

Latest News from Bridging Loan Now - 27% of brokers report enquiries rising for business loans and bridging loans

Out of the 594 brokers who took part in the survey, 47% stated that good service and the ease of dealing with the lender were their paramount requirements when choosing a bridging loan or business loan lender. 39% stated that having the lowest interest rate to offer their clients was of the most importance.

In terms of market activity, 47% of respondents claimed that they were dealing with fewer business loan and bridging loan enquiries now than during the same period last year, although 27% reported that enquiries have risen.

For those who had seen business levels drop, 68% said that they had only dipped slightly by less than 10%, giving a strong indication that confidence is returning to the bridging loan and bridging loan sectors.

The results were split down the middle when it came to submitting deals directly or via a specialist broker, with 46% of introducers choosing to submit business via specialist brokers and 47% going direct to the lender.

Commercial and bridging loan finance lenders fared well in the poll with 61% of brokers saying that lenders always deal with them in a positive way, however 31% said lenders responded to their cases “half heartedly” and 8% stated that they were dealt with in a negative manner.

Managing Director of TFO, Rhiannon Gray-Minton, said: “On the whole, brokers feel that lenders are keen to help with their enquiries, which is very encouraging. However, a very large number are unhappy with the way in which they perceive lenders deal with them. Perhaps this is an indication why more and more brokers are turning to specialist brokers like TFO to assist them.”

Latest News from Bridging Loan Now - Major bridging loan lender weighs in on upfront fees debate

Last week our article on upfront fees in bridging loan finance received a huge response from both brokers and bridging loan lenders. Here, Alan Margolis, the chief executive officer at bridging loan company Cheval, tells Bridging & Commercial his stance on the contentious subject:

There has recently been some consternation about the practice of some bridging loan companies charging “upfront” fees which are wholly or partially non-refundable.

Given the speed that most bridging loan companies operate; there is of course almost always one non-refundable cost incurred by borrowers - the valuation. Given that valuations are undertaken by independent 3rd party valuers, the concept of a borrower paying for the valuation is well established, even if the final report is such that the bridging loan does not proceed because of its contents and the borrower is “out of pocket” as a result.

However, other forms of “upfront fees” are more contentious. Where these are non-refundable or part refundable at the bridging loan lender’s discretion, the borrower runs the risk that fees may be paid but the bridging loan finance does not proceed.

Such fees may be termed “Application Fees”, “Solicitors Fees” or “Commitment Fees”. In Cheval’s view, the label is immaterial provided that the amount of the fee, whether it is wholly or partially refundable, and the circumstances in which it is refundable are made absolutely clear at the outset and that there are no “conditions” hidden in the small print.

Intermediaries have a choice. The bridging loan market is extremely active and competitive and not all lenders charge upfront fees. If intermediaries are concerned about their clients having to pay upfront fees for a bridging loan, they can always approach bridging loan lenders who do not charge such fees. If intermediaries still believe that it’s in their client’s best interest to run with a bridging loan lender that charges such fees, they are, in our view, obliged to ascertain precisely how those fees are applied and if, when and how they are refundable.

Cheval and its solicitors do not charge upfront fees. It is part of our commitment to assuring the borrowers and their intermediaries that we strive to complete as many bridging loans as possible – that we make our money by completing bridging loans and not processing them!

There is a caveat here that many intermediaries will recognise. Where a bridging loan application is particularly complicated e.g. there are multiple securities and/or a complex ownership structure, then it is quite legitimate for a lender and its solicitors to ask for a Commitment Fee (which may be non-refundable) from the borrower. Such fees reflect the enormous amount of work that may go in to processing such an application. Again, at the risk of stating the obvious, the intermediary and the lender should establish clearly between them in writing the basis on which such a fee is refundable, if at all.

Lastly, all intermediaries and indeed bridging loan lenders should be aware of the risks posed by those so-called bridging loan lenders that charge upfront fees without any intention of ever completing the bridging loan. These entities have always been lurking in the shadows and tainting respectable short term bridging loan lenders.

Intermediaries are advised to ensure that they only put proposals to bridging loan lenders who are members of the Association of Short Term Lenders (ASTL). All ASTL members are in the business of lending and if intermediaries and their customers have a complaint about the conduct of an ASTL member, then they can always approach the ASTL to investigate and mediate.

Latest News from Bridging Loan Now – Demand more money for your Sparkle - unique and innovative way for you to release money against assets you already own.

From initial enquiry you can have the money in your bank account within 48-72 hours.

Its quick, discreet and reliable.

If you are looking for short term finance then we have made it as easy as possible.

How it works

Step 1

Firstly you need to either contact us via telephone or, if you prefer, fill in our short and simple enquiry form.

Don’t worry – it is very secure and your details will NEVER be used by anyone other than Sparkle Money.

Step 2

We send you a pre paid Royal Mail Special delivery pack, all you then have to do is return the pack with your goods inside. These will be insured whilst in transit to our secure vault. Upon receipt, our specialist team values the item(s) and we confirm the available loan amount to you.

We offer transit cover up to £30,000 (highest amount available in the market) so that you know your goods are protected, giving you extra peace of mind.

Step 3

If you are happy with the loan amount and terms the funds are then transferred into your account the same day.

If you don’t want to go ahead we simply return the items to you.

Step 4

Your items will be put into our secure storage facility and Sparkle Money will look after them as if they were our own valuables.

Step 5

When you are ready to pay off the finance you can either give us a call or log on to your online area and follow the instructions.

Step 6

We'll return your valuables to you in the condition that they came to us.

The whole process is safe, secure and discreet.

That’s the Sparkle Money promise.

Sparkle Money FAQ’s

• What kind of valuables do you accept?

We accept most types of jewellery, including all pieces containing gold, platinum and diamonds.

We also lend on luxury and fashion brand watches, antiques including furniture and collectables, art and other luxury items, such as cars.

• How do I send the valuables to you?

We use Royal Mail Special Delivery Shipping Service and have the highest covering insurance policy in the market, of up to £30,000 in transit.

We will send you a free, fully-insured Special Delivery pack and ask you to drop it off, along with your item, at your nearest Post Office.

• Do I need to send any documents?

No documents need to be sent with the valuable.

Once we have received your item, we will contact your client for proof of identification.

• How fast is the process?

The process can take as little as 3 days from the point of contact. Once you have sent the item and we have received and valued it, identification checks are run and the money can be transferred immediately.

• Will my credit rating be affected?

Your credit rating will not be affected. As part of our legal compliance we are required to carry out identity checks, however these are not credit checks.

• Where will my goods be stored? Are they insured?

Your goods will be stored safely in the vaults at Sparkle Money’s prestigious Hatton Garden headquarters in central London. We have the highest covering insurance policy in the market, meaning that items can be insured for up to £30,000 in transit and for an unlimited amount in the vault.

• Who values the items?

We have highly qualified, specialist valuers based in Hatton Garden who are fully trained and hold qualifications from industry bodies, including the National Association of Goldsmiths.

• What’s the minimum/maximum amount you will lend?

The minimum amount we lend is £500, and there is no maximum.

• What interest rate will my client have to pay?

Our interest rates vary depending on the amount borrowed. For loans under £1,000 the interest rate is 5% a month. For all loans over £1,000 we charge a market leading rate of 4% a month.

• When does the loan have to be redeemed?

The standard duration of the loan is 6 months, however after this time period it is possible to extend the loan, subject to approval.

• What happens if I can’t repay the loan?

In the event that you can’t repay the loan, your item will be sold for the best price achieved to recover the amount borrowed, any outstanding interest and any costs incurred in selling the item.

Your credit rating will not be affected and any surplus is sent back to you.

Secure transit of your valuables: • Sparkle Money promise to use only the best services to guarantee the safety of your valuables in transit.

• We use a Special Delivery Courier Service and provide the highest comprehensive insurance policy in the market - up to £30,000. This service ensures that your items arrive at our Hatton Garden premises within 24 hours.

• However, for valuables that are worth over £10,000 please contact us to discuss our premium courier options.

• For loans of more than £20,000 a home valuation from one of our experts at Sparkle Money can be arranged. Additionally, if you are unable to send your valuables to us we will be able to organise a meeting between yourself and our valuation experts at one of our appointment offices.

• Once we receive your items, they are stored in our one of our secure vaults at our Hatton Garden offices and fully insured. When your loan is redeemed we will return your valuables to you in the same condition in which they were received.

Call us now at Choose Loans on 0845 862 0524 to arrange finance today.

Or click Apply Now and complete our short enquiry form and one of our advisers will call you back.

Latest News from Bridging Loan Now - Thursday 9th July 2009 - Bank holds base rate at 0.5%

Purchases of £112bn have been made under this facility since its use for monetary policy purposes was first announced after the Monetary Policy Committee’s meeting in March.

The committee predicts that the programme will take another month to complete. It will review the scale of the programme again at its August meeting, alongside its latest inflation projections.

The base rate hold was widely tipped by commentators, who continue to focus on the success of the Bank’s asset purchase programme to boost the money supply.

Expectations that the MPC would ask chancellor Alistair Darling to extend the quantitative easing programme beyond the agreed £125bn were resumed for the second month.

But away from the focus on quantitative easing the low base rate is presenting persistent problems with reviving lending, as returns on money held by lenders is not earning as much as it did.

Linda Will, sales and marketing director at In The Loop Mortgages, says: “There are fundamental problems associated with the low base rate environment which are not being talked about because all of sudden it isn’t sexy to talk about.”

Ben Thompson, director of mortgages at Legal & General, says: "Throughout 2010 the challenge for the MPC will shift towards combating inflation whilst not going so far as to choke off any economic recovery.

"Add into the mix the inevitable tax increases that will be required and the knock-on effect that will have on spending patterns and you start to get an idea of the enormity of the task.

"It will become a completely different challenge to the one they have been facing for the past year or so.

"Whilst many are predicting stability in the base rate for some time to come, recent experience has shown that a week is a long time in politics and even longer in the mortgage industry.”

Latest News from Bridging Loan Now - Tiuta, Bridging Loan Lender launches first comprehensive review of Bridging Loan Market

Tiuta, one of the UK’s leading bridging loan companies, is undertaking research in order to compile the very first comprehensive review of the UK bridging loan market.

Conducted by Tiuta, the survey will be asking senior-level advisors within the bridging loans industry for their views on current market trends, FSA regulations, mortgage sourcing systems and what they look for when dealing with a bridging loan service provider. They will also be asked to pick out their top 3 bridging loan lenders in the past 12 months from a compiled list.

Gary Booth, CEO of Tiuta, said: “No one has yet conducted a fully comprehensive survey of the bridging loans service industry. By questioning a good representation of bridging loan advisers across the market, and by collating and interpreting the data accurately, we should have a much clearer idea of just how the bridging loan market is perceived. As this sector has grown significantly in the past year or so, we felt it was important to monitor market trends – both past and current – to give us a clear indication of where the future of bridging finance is going, and what we can do to perform better. “

Latest News from Bridging Loan Now - Bank holds rates at 0.5%

The Bank of England’s Monetary Policy Committee has decided to hold the base rate at 0.5% for the third month in a row.

The MPC has also voted to continue with its £125bn asset purchase programme, or quantitative easing.

It expects the programme to take another two months to complete and says the scale of the purchases is to be kept under review.

With little room for manoeuvre in cutting interest rates, all eyes were on whether the Bank would want to extend its programme of quantitative easing beyond the £150bn limit agreed with the Treasury.

Commentators had forecast that the central bank may request more money to play with in an attempt to boost the money supply.

Johnathan Cornell, head of communications at First Action Finance, says: "Many analysts believe the base rate will remain at 0.5% until well into 2010.

"Whilst that's great news for those borrowers on tracker rates, those who are sitting on the fence on their lenders standard variable rate, waiting to see what happens, face a much bigger potential problem than splinters.

"They can sit tight and enjoy their low rate however if they need financial stability the time to get off the fence is rapidly approaching."

He adds: "Swap rates which lenders use to fund their fixed rates have been increasing in the past few weeks and we have seen fixed mortgage rates edging upwards.

"Most of the lenders which offered borrowers 'drop lock' facilities which allow borrowers to change from a tracker rate to a fixed rate with incurring early repayment charges have scrapped these in the past couple of months.

"If borrowers want to fix their mortgage the time to act is now, delays will be costly."

Ray Boulger, senior technical manager at John Charcol, says: "Despite the Bank having used about £75bn of the funds it has agreed to commit under its quantitative easing programme it is hard to see any visible impact of this so far in terms of any real increase in mortgage availability.

"It may be that with the housing market performing better than virtually all the forecasts at the end of last year, albeit with activity still at a historically low level, the modest extra mortgage demand this has generated is enough to be the straw that breaks the camel’s back."

Latest News from Bridging Loan Now - CBI says credit crunch grip weakening

The CBI (Confederation of British Industry) believes that conditions are expected to stabilise for businesses in the months ahead.

Access to business finance, be it in the form of a business loan, commercial bridging loan, buy to let mortgage, asset and cashflow finance, equipment leasing and invoice factoring, and acquisition and development finance remains a serious problem for businesses, but the rate of deterioration in credit conditions slowed further over the past three months, the CBI said.

Responding to the CBI's latest Access to Finance Survey, businesses were less negative than they were in March about the supply of new and existing credit. Asked about the availability of new credit lines over the past three months, a net 20% reported that the situation had deteriorated. While this indicates that supply remains tight, conditions have eased since March (-36%) and January (-62%). For existing credit lines, the balance was -10%, compared with -16% in March.

The easing of conditions for new credit supply is expected to continue. Only a net 7% of firms see a further fall in new credit supply over the next three months. Meanwhile, no further worsening is anticipated for existing credit supply. Around 10% of firms expect the situation to improve, and another 10% expect it to deteriorate, giving a balance of zero per cent, which indicates that conditions for existing credit will be stabilising.

Ian McCafferty, CBI chief economic adviser, said: "Credit availability is still a concern, but the severity of the situation is easing compared with a few months ago. Big companies who were encountering serious problems getting credit at the start of the year are still finding it difficult, but they expect that the supply of existing credit will get slightly easier over the next few months."

However, while the tightening of credit supply in bank loans and overdrafts has moderated over the past three months, trade credit insurance remains a significant problem. A balance of 54% of firms reported its availability had worsened in the three months to May, although this was not as severe as in the March survey (-72%).

Latest News from Bridging Loan Now - Bridging loan firm launches new advanced product

Following the success of Underbridge, launched in 2008, bridging loan company Tiuta has announced the launch of Underbridge Advanced. The new product is designed to offer investors the opportunity to capitalise on the significant investment opportunities available at the present time.

Underbridge Advance can provide up to 100% of the purchase price for a property that is being secured at a discount, for example at an auction or in a distressed sales environment.

Typically designed for properties bought at auctions, executors’ sales, repossessed properties or distressed sales from property clubs or second homeowners, the 100% offer is based on an independently surveyed valuation of the property’s market value and is available for bridging loans of up to £3,000,000.

Gary Booth, CEO of Tiuta said: “This new product is the perfect solution for buyers investing at auction, or perhaps a distressed sale where the property can be purchased below the genuine open market valuation. It provides a real bonus for professional investors, and when one considers the maximum loan size is £3,000,000, this will open up opportunities for the purchase of both substantial properties and those in exclusive locations where previously funding has been difficult. It will also open doors for first time buyers who may be looking to grab a bargain, buying at a discount with a view to remortgaging.”

If you are looking to purchase that bargain property at auction and require a bridging loan to complete the purchase until you get a mortgage in place, please give us a call at Bridging Loan Now on 0845 862 0524.

Latest News from Bridging Loan Now - What is a Bridging Loan?

Typically bridging loans will be classed as open or closed. Open bridging loans have no definite end date or repayment method, whereas closed bridging loans will have a definite exit date and plan in mind. (i.e. a mortgage offer is being produced)

The loan is often required at short notice due to unforeseen circumstances. The fast turnaround of bridging loans (Typically 7-10 days) makes them an ideal solution for the following situations:-

Need to break a property chain? - Purchasing a property before the sale of existing property completes.

Fancy a bargain at auctions? - Buying a property at auction without worrying about 28 day completion deadlines.

Spotted a development opportunity? - Need to buy a property in a poor state and renovate before securing a mortgage? Bridging loans are ideal as a property with no bathroom or kitchen can still be used as security.

Are you in a contract race? - Apply for a bridging loan at the same time as your mortgage and never lose a race again!

Business Needs? - Finance business opportunities by quickly releasing equity from your existing property.

Facing Repossession? - Give yourself some more time to refinance by using a bridging loan.

Latest News from Bridging Loan Now - Commercial Bridging Finance

Bridging Loan Now can roll up or deduct payments, and are able to meet most bridging loan requirements covering all areas of the UK, Northern Ireland and Scotland.

When funds are required within days rather than weeks, Bridging Loan Now can arrange competitive quotes sourced from the widest range of products to suit all lending requirements.

What We Do

Bridging finance for any purpose:

1st charge or 2nd charge equity release

1 - 36 month terms available

Fast processing - from 2 - 10 days depending on information supplied

Up to 100% LTV available (with additional security)

Clients Best Suited

Client purchasing property at auction

Property refurbishment or conversion projects

Clients with chain-breaking mortgages

Clients who have been, or are about to be repossessed, to avoid bankruptcy

Clients requiring short-term finance for business purposes

Turnaround times

Bridging finance cases can be completed in a matter of days, depending on the loan size, the security being used and the initial information supplied to Bridging Loan Now.

A bricks and mortar valuation report that must have been carried out within the last 3 months by a panel surveyor is required on all cases.

Latest News from Bridging Loan Now - Buy-to-let mortgage product numbers showing signs of recovery

The firm said landlords looking to take advantage of low house prices now have better financing options to expand their portfolios because the number of buy to let mortgage products had been gradually rising.

By using product availability information from its buy to let mortgage sourcing tool, Mortgage Flow, Mortgages for Business noted that whilst the number of buy to let mortgages available was increasing, it was still just 20% of the levels seen in 2007.

Mike Freeman, technical support manager at the firm, said that while buy to let mortgage availability was at about a fifth of the level of 2007, it was good news that product availability had improved since the low of December 2008.

Freeman commented: “With the market starting to bottom out and landlords beginning to buy up properties at low prices, lenders are beginning to feel more secure. In addition we have actively been talking to lenders who we have long term relationships with and there is a feeling that we may see a positive shift in lending criteria with a particular focus on loan to value ratios. This is very positive and shows growing confidence in the buy to let mortgage market.”

If you require finance for a buy to let mortgage please give us a call at Choose Loans on 0845 862 0524. Choose Loans specialise in arranging buy to let mortgages.

If you need to raise finance immediately, for instance to buy that bargain property at auction, we can also arrange a bridging loan as short term finance, whilst we arrange your buy to let mortgage, so you do not need to worry about 28 day completion deadlines.

Latest News from Bridging Loan Now - 07/05/2009 - Bank of England base rate held at 0.5%

Ray Boulger, senior technical manager at John Charcol, says that a hold at 0.5% is likely to be the case for the next couple of months, with the MPC's focus shifting from the base rate to quantitative easing.

But he adds: "While it is difficult to be confident how long bank rate will stay at 0.5%, it is likely than when the MPC starts increasing base rate it will move up quite quickly.

"This could be very uncomfortable for anyone still locked into a variable rate mortgage at that time, especially borrowers whose mortgage payment comfort zone has migrated to their current low payments."

While Adrian Coles, director-general of the Building Societies Association, says:

“The Bank’s interest rate decision is no surprise. While hard pressed savers should see interest rates maintained, this decision does nothing to help lenders to attract new deposits that could be used to fund mortgage lending.

“With the general economic outlook remaining bleak, we hope that the expansion of the quantitative easing programme will help to lessen the severity of the downturn.”

If you require finance in the form of a residential or commercial bridging loan, business loan, secured loan or personal unsecured loan, please give us a call at Choose Loans on 0845 862 0524 or click Apply Now and complete our simple 30 second enquiry form and one of our experienced loan advisers will call you back to discuss your loan requirements.

Latest News from Bridging Loan Now - Bridging loan types

A closed bridging loan is only available to homebuyers who have already exchanged on the sale of their existing property. Very few sales fall through after exchange, so lenders are happy to offer closed bridging finance.

An open bridging loan is taken out by buyers who have found their ideal property, but may not have put their existing home on the market. A bank will ask lots of questions and want supporting information. It will also insist on you having lots of equity in your existing property.

The basics

The lender will expect to see the mortgage offer on the new property, the property details and may ask for other proof that your current home is being actively marketed. It will also want to know how you will meet the interest payments and ask what your exit strategy will be if the sale were to fall through a few months down the line.

Most lenders put a 12-month limit on an open bridging loan. After that, they will probably renegotiate as long as you have paid the interest during the period and the property market hasn't collapsed.

Latest News from Bridging Loan Now - Find a cheap bridging loan

With the UK property market facing a serious slump and mortgage lenders cutting back on finance, many sales are currently falling through. If you have an almost cast-iron certainty of knowing yours can be put back on track and have a good credit history, then a bridging loan may help. However, if you are simply struggling to sell your property and have already found your new dream home, then a bridging loan is almost certainly not the answer.

Before considering a bridging loan bear in mind that you could raise finance to bridge the gap between the purchase of your new home and the sale of your old home with a standard no-fee mortgage. By opting for a deal with no early repayment charges, you can clear the bridging loan once your sale goes through, and get a better rate of interest. The lender will want to know that you have sufficient income to cover both loans.

If you take out a bridging loan, the lender may want to take your current property and the new one as security on it, so if you default both may be at risk. Similarly, taking out a bridging loan to buy a property either on the open market or at auction because you cannot get mortgage finance quickly enough can be risky. If you know that you will get mortgage finance then the bridging loan option is fine.

However, if the reason is because you are struggling to get a mortgage in the first place, a bridging loan is a bad option in a market where mortgage lenders are pulling out of deals, lowering valuations and hiking deposits and rates at short notice. Mortgage experts say the acid test of whether a bridging loan is right is that you have a more valid reason than simply wanting to buy before you can sell.

Activity in the bridging loan market is small scale, especially during a property boom when there is rarely a problem with selling a home quickly. But when the market slackens off, more home owners are forced to consider bridging loans.

Latest News from Bridging Loan Now - If you're having a home-selling nightmare, a bridging loan may be the answer but be very careful. See our guide

But be careful before you dive in. Bridging loans are expensive and are usually considered to be a last resort.

If a bridging loan can tide you over in the short term then the extra expense may save you from losing money already spent in the purchase process, as well as reducing stress, if you do it for the wrong reasons you may end up in serious financial difficulty.

For buyers with an imminent purchase but a problem with their own sale there are two options – taking on another mortgage or a bridging loan. But beware, both will leave the borrower paying off two loans at once, and experts say bridging loans should not be used as a way of simply trying to beat property chain problems.

Latest News from Bridging Loan Now - Bridging Loan Finance – The Who, What, and Why

At their basic, bridging loans are interest only loans designed to “bridge the gap” between the purchase of a new home and the sale of an old home. They are an expensive option, but could be the difference between getting that new home and losing out to another buyer.

Lenders prefer to give a bridging loan to consumers who have already begun the sale of their existing home. Once an exchange has happened, few sales fall through. Lenders are happy with these closed type of bridging loan.

Sometimes you find the home of your dreams and didn’t even know you were looking. At these moments, you want to buy even though the home you live in is not for sale – yet. Lenders will look at an open bridging loan with more skepticism. It is important to the lender that a borrower is able to prove the ability to meet the interest payments and even that they have a strategy in place in case the existing home doesn’t sell in the allotted 12 months.

A bridging loan should not be the first line of finance for a new home. Bridging loan finance is only for solving a temporary cash flow problem – like if the sale of the existing home falls through as the purchase of the new home is beginning.

The cost of bridging loans comes from the added work that must take place by the lender (to insure the borrower’s ability to pay) as well as in the speed that bridging loans must be completed. Bridging loan finance, although secured by real property, does tend to be a bit riskier for the lender.

The key to getting the right bridging loans is to shop around and here at Bridging Loan Now we do this for you as we have access to a large number of high street and alternative lenders who specialise in arranging bridging loans; and because time is usually vital, the moments saved in comparison shopping by our highly experienced staff could save you, the consumer, in the long run.

A bridging loan should only be considered if the borrower is certain that he will be in a position to repay the loan within about six months.

If you require bridging finance for residential bridging loans or commercial bridging loans and speed is of the essence, please give us a call at Bridging Loan Now on 0845 862 0524 or click Apply Now and complete our simple 30 second enquiry form and one of our friendly bridging loan advisers at Choose Loans will give you a call to discuss your bridging loan requirements.

Secured Loan Now, Business Loan Now, Bridging Loan Now, Debt Rescue Now and Choose Loans are all trading names of M60 Mortgages Ltd and specialise in arranging secured loans, personal unsecured loans, homeowner loans, home improvement loans, car finance loans, debt consolidation loans, residential and commercial bridging loans, commercial mortgages and business finance, and buy to let mortgages and overseas mortgages using whole of market high street banks and specialist finance lenders.

We also specialise in arranging debt management plans and IVAs (individual voluntary arrangements).