Tag Archive: loan

Facts about Bridging Finance and Loans

You can take bridging finance on either a second or first charge basis. Most lenders use closed bridging loan. This means that you are given a fixed term to the contract. This is applicable when the completion dates for purchasing new property and selling it is known. On the other hand, an open bridging loan is when the term of the contract is not fixed.

bridging loansNowadays, there are bridging loans for all types of clients ranging from individuals to companies. Thus, if you have excellent credit status but it has become difficult to obtain loans and mortgages you can apply for these loans. Also, if you are self-employed and have a poor credit history, you can qualify for these types of loans. Usually, all forms of security are taken into account, from commercial, semi-commercial, and residential properties or land. The truth is that properties can be partially or fully developed. Also, they can be in need of renovation or in perfect condition. You can take a bridging loan on a wide range of securities and clients.


Traditionally, bridging loans were mainly used to buy a new home before getting a buyer to purchase the current property. Over the years, this form of finance became quite popular in the fast-moving and buoyant property market. Another factor that contributes to the immense growth of these types of loans is the ever-increasing demand for home ownership. Nowadays, the uses for bridging loans are extremely varied.

In most cases, bridging finance is used for development of properties including self-build projects, property conversions, and site purchase. The good thing about these loans is that they can help complete purchases quite quickly. For instance, if you secure the property at an auction, you will only have 28 days to complete the purchase. Moreover, they are cost-effective for people wishing to get the property for resale and refurbishment.

Versatile and Cost-Effective

when you need a bridging loanFor most clients, they are not aware of where they can get financing and to what extent. It is a good idea to carry out extensive research to know answers to these vital questions. This is necessary to help them make informed decisions and plan ahead. You can get bridging loans from non-mainstream lenders to high street banks. Usually, the banks are a bit slower as compared to non-mainstream lenders. For instance, the normal turnaround is just seven working days.

The Advantages Of Loans


A debt may come in different forms. Some may bear interest and some may not. If you go to a bank or lending company, you can expect that an interest rate will be imposed in addition to the principal amount that you will be borrowing. After all, this is how they earn money. There are numerous lending companies that you can go to if you are considering to apply for a loan.

The need for a loan

There are various reasons why people are taking out loans. And to address the different demands of the consumers, different types of loans were established. You can apply for a loan depending on the purpose. If you are starting up a business or expanding an existing business company, you may consider getting a business loan. There is also a so-called house loan for those people who are aiming to buy a house. Or, if your purpose is to acquire a car or a vehicle, you may opt for a car loan, also known as auto loan. Other types of loans may include personal loan, salary loan, payday loan, and many more.

What are the advantages of taking out a loan?

moneyObviously, loans are being applied for by those people who do not have available resources to address certain financial needs. Like what was mentioned earlier, loans come with interest rates. And so, as a borrower, it is very important that you are responsible enough to know your obligations and settle them on or before the due date. This is to avoid additional charges as well as legal procedures if, for any reasons, you failed to settle your loan.

On the other hand, loans are quite useful especially if you are trying to resolve an emergency financial situation. Here are the advantages of taking out a loan.

loanFlexible and affordable payments

A loan may entail certain terms and conditions. Most of the time, the payments are made through installments. This means that you won’t have to come up with the principal amount plus the interest on just one payment. It will be staggered. A certain amount will be set for you to pay within a specific period until such time that the total amount has been paid off.

It can be used for different purposes

The purpose of a loan is not limited. There are loans that are available for almost anything that you may need it for whether it is for personal use, educational, home improvement, medical, and many more.

Benefits Of Federal Student Loan Consolidation

student loan

A federal student loan consolidation is a fixed rate refinancing program that combine all your existing federal student loan into one new loan. Federal student loan consolidation helps to give a student who has just graduated more time to pay back the loan. You will also save the frustration of dealing with multiple lenders and reduce the risk of missing payment because loan consolidation combines all your loans to a single loan meaning that you will have one single bill to pay. Below are benefits of student loan consolidation.

save money1. Fixed interest

Many non-consolidated student loans usually operate on a variable interest rates meaning that you can pay more or less depending on prevailing interest rates. Federal student loan consolidation has fixed interest rates meaning that you can make predictable payment plans. You will also know how much you are supposed to pay. You will benefit if interest rates go up because yours won’t change.

2. Long repayment periods

Another benefit of consolidating your student loan is that you get more time you pay back the loan. You will be given up to 30 years to pay back the loan meaning that you will not be pressured as it is usually the case with other types of loans. You will also have the freedom to pay off the loan early with no penalties for early payments.

3. You only deal with one lender

Loan consolidation allows you to only deal with a single leader. Many students take several types of loans to pay for their college fee. When you graduate with a loan from the federal government as well as few other private lenders, it might be a bit challenging to keep track of all your loans. Loan consolidation allows you to only deal with one lender. This will make the repayment process easier.

interest rates4. Low interest rates

Unlike other types of loan, consolidated loans usually have low interest meaning that you will pay less. The main reason consolidated loans attract low interest rates is because the borrower is given ample time to pay back the loan. This means that you will have lower monthly repayment. Consolidated loans also have fixed interest rates meaning that you will not add even a single cent when interest rates in the market fluctuate. In addition to that, you have the freedom to make early repayments.

5. Additional repayments plans

Besides making single monthly payments, loan consolidation will provide additional repayments plans. Consolidated loans offer a variety of options to the borrower including income-based repayment plans.