In these tough and volatile economic times, most people are aware that both secured and unsecured loans are on the rise, mainly as people look to make up for any drops in income through borrowing money. What is less known though is the rise in the amount of bridging loans that are also being issued, with a number of specialist companies now having to employ extra staff to cope with the demand being placed on them by members of the public eager to use their services.

It has been estimated by one company – West One Loans – that the UK bridging lenders will be issuing loans to the tune of £1 billion by the middle of 2013. In 2010 the bridging marker was worth approximately £700 million, but rapid expansion has seen a £50 million increase in this valuation just in the first quarter of 2011. What are the reasons for this massive rise in demand for bridging loans though and is every sector of the industry sharing the same optimism?

Well, the main rise for this increase is due to the housing shortage that is currently gripping the country. People are reluctant to sell their homes for the current valuations – which are extremely low – and therefore there is more competition for every house that goes onto the market. In order to win the bidding, a potential buyer must be able to come up with a good offer, which is often only achievable with the aid of a bridging loan. This is made even more obvious by the fact that many houses are being bought by those able to afford the current prices easily, such as property investors and those looking to buy to let. This means that the competition for homes is being driven up even further.

Another reason for the increase in bridging loans is the fact that there is the general credit crunch. In these tough economic times, lenders need to be extra cautious about the people that they lend to, as there is a greater risk of non-payment. This has caused a number of people to turn to loan companies to supply them with a bridging loan, so that they can quickly get together the money needed for a deposit on the home that they want to buy. Although this means often paying higher interest rates than a mortgage, it is the only option that many people have.

This optimism regarding the state of the bridging market is generally shared across the board; however the figures quoted at the beginning of this article are seen by many as the best case scenario. The AOPB have stated that the bridging market will grow, but they estimate that the industry is currently worth £306 million – more than half the figure quoted previously. More digging will need to be done by those in charge of regulating the industry to establish both the real current value and also the predicted value of the bridging sector.

Either way it is looked at though, the bridging industry is in remarkably good shape. So often it has been the most ignored area of lending, but now it seems to be really coming to the fore. It only remains to be seen whether its popularity will remain once the financial crisis has finally passed.

Copyright © 2011
Bridging Loans and Bridging Finance is an excellent source of secured, short-term finance that can be arranged very quickly.

In these tough and volatile economic times, most people are aware that both secured and unsecured loans are on the rise, mainly as people look to make up for any drops in income through borrowing money. What is less known though is the rise in the amount of bridging loans that are also being issued, with a number of specialist companies now having to employ extra staff to cope with the demand being placed on them by members of the public eager to use their services.

It has been estimated by one company – West One Loans – that the UK bridging lenders will be issuing loans to the tune of £1 billion by the middle of 2013. In 2010 the bridging marker was worth approximately £700 million, but rapid expansion has seen a £50 million increase in this valuation just in the first quarter of 2011. What are the reasons for this massive rise in demand for bridging loans though and is every sector of the industry sharing the same optimism?

Well, the main rise for this increase is due to the housing shortage that is currently gripping the country. People are reluctant to sell their homes for the current valuations – which are extremely low – and therefore there is more competition for every house that goes onto the market. In order to win the bidding, a potential buyer must be able to come up with a good offer, which is often only achievable with the aid of a bridging loan. This is made even more obvious by the fact that many houses are being bought by those able to afford the current prices easily, such as property investors and those looking to buy to let. This means that the competition for homes is being driven up even further.

Another reason for the increase in bridging loans is the fact that there is the general credit crunch. In these tough economic times, lenders need to be extra cautious about the people that they lend to, as there is a greater risk of non-payment. This has caused a number of people to turn to loan companies to supply them with a bridging loan, so that they can quickly get together the money needed for a deposit on the home that they want to buy. Although this means often paying higher interest rates than a mortgage, it is the only option that many people have.

This optimism regarding the state of the bridging market is generally shared across the board; however the figures quoted at the beginning of this article are seen by many as the best case scenario. The AOPB have stated that the bridging market will grow, but they estimate that the industry is currently worth £306 million – more than half the figure quoted previously. More digging will need to be done by those in charge of regulating the industry to establish both the real current value and also the predicted value of the bridging sector.

Either way it is looked at though, the bridging industry is in remarkably good shape. So often it has been the most ignored area of lending, but now it seems to be really coming to the fore. It only remains to be seen whether its popularity will remain once the financial crisis has finally passed.

Copyright © 2011

Bridging Loans and Bridging Finance is an excellent source of secured, short-term finance that can be arranged very quickly.

It has always been the case that the UK has tended to follow trends that began in America, albeit very often with a delay of several months or years. So too it is proving with payday loans. Five years ago these loans were increasingly commonplace in a saturated US credit market but they were hardly heard of in the UK. Fast-forward to today and the rise of payday loan lenders in Britain has been staggering.

There are now an estimated 30 companies all competing for this lucrative and growing market with even more due to enter soon. Each lender in turn offers various plans to suit a variety of Borrowers so the options available to the consumer looking for a payday advance loan have multiplied. The public’s awareness of the product too has risen. Gone are the days when it was a clandestine market spoken of in hushed tones with mumbling references to APRs, now firms like Wonga are unashamedly pumping their adverts across the TV and radio airwaves and even enjoyed a highly successful sponsorship of last year’s darlings of the Premier football league, Blackpool!

With the increase awareness has come increased acceptance.  Once upon a time the thought of taking a payday advance loan had a very negative image. The British don’t like to discuss their debts or finance like the Americans but this particular kind of loan had a perceived special stigma as it seemed to represent an inability to balance books and make prudent purchases measured to one’s income – a reflection of the cultural thrift that had lingered in the UK probably since wartimes and was only properly dispelled by the economic policies of the Thatcher government in the 80s. Once the nation started borrowing to buy their homes, debt became a more conscionable situation and therefore as we rushed into a new millennium with sub-prime borrowing taking off, it was also only a matter of time before payday loans lost any negative connotations. This is certainly the case today.

The current generation of young workers think nothing of paying to get their paycheques in advance. There is a culture of immediacy which demands that rewards are not something that are earned after a period of effort, rather they are an entitlement and this generation does not want to wait. This culture is also complimented by the increasingly material nature of our society so it wasn’t hard to foretell that a market in loans that allow you enjoy your payday today with out waiting was always going to do well.

Are there drawbacks? Well certainly the loans are expensive but it is also worth remembering that we are talking about short term advances in small amounts so relativity is key. One should also bear in mind that each time the Borrower repays, they are enhancing their credit record. Not all bad then but, like all borrowing, best used in a measured manner and only when appropriate.

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If you are in the process of expanding an existing business or taking the first steps to becoming your own boss, there are several steps to take until your company is up and functioning properly. A great way to expand a business is to locate a business site in which you can set up and run as your company. In order to raise the finance to purchase such a premises you must find a lender who is willing to lend to you based on the value of the property you are buying. This is called a commercial loan and is similar to your traditional home loan but with slight differences. Firstly the LTVs are lower than with home loans as business viability is riskier. Usually a maximum of 75% LTV is available though sometimes higher can be achieved.  Secondly the income of the business, rather than the individual, is analysed as a priority. And finally, even after all this, the individual may be asked to offer Personal Guarantees as security. It’s a complex field and therefore speaking with a commercial mortgage specialist is highly advisable.

How to get the best rate for your money?

Once you have made the final choice to expand your business and have located professional help, it is important you sit down with your banker and discuss your financial situation and what you plan to spend, in order to build a successful business. A business loan is very hard to come by especially if you have had past judgments against you that may lower your chances to obtain a loan. One option that has been successful for other business owners is going directly to the same bank in which approved you for their home mortgage loan. The great thing about a local bank that has established a relationship with you already is the trust factor that is present in every mortgage payment you have made in the past up to this point in order to increase your credit score. Many also have several incentives available to their customers to apply for a commercial mortgage loan including discounted rates lower deposits.

When to put your offer on the table?

Once you have found the perfect building for your business it is up to you to act quickly to secure it.  You will always be in a stronger position as a Buyer of you can show finance in place so it is worth discussing with you bank in advance of your search to see what funds are available to you It is likely they can pre-approve you based on certain scenarios and give you an idea of what it is you can afford. With finance in place you can then go about negotiating the best deal. Nothing sways a Seller’s price more than the thought of a clean transaction with cash up front – this will always be your most powerful negotiation tool. At last, when you have signed the contract and settled all disputes you can now sit back and enjoy the freedom that comes with knowing your business premises are secure.

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A secured loan allows an individual to use their personal property as security to obtain a loan. By placing a charge over personal property, the bank is reassured that they are not at high risk of losing any money if you happen to default on any payments. The charge however is a second charge and so must sit behind a pre-existing mortgage. Somewhat surprisingly then, it is the case that if you don’t already have a mortgage and your property is unencumbered, then you can’t get this kind of loan! It is also important to note that in the event of default, the bank is entitled to foreclose on your property which can then be sold to recover the debt. Since this type of loan requires you to place a charge on your property until the loan is paid, the interest rate attached to the loan is usually more beneficial and the term can be longer – up to 20 years. The alternative of taking a loan without security most likely leads to a more punitive rate - this is the primary advantage of the loan.  In addition, even those with poor credit histories can borrow if they have enough equity in their property; usually total borrowings can go up to 85% LTV.

How individuals can gain from a loan?
As with all loans there are some disadvantages, most notably in this case that your property is at risk if repayments are not made, however there are several positive factors too. Many people on this type of loan have had poor credit histories and by leveraging the free equity in their property they allow themselves an opportunity to borrow and, in making repayments, rebuild their credit record and their credit score. This is a great opportunity for a person to prove they are capable of paying off a loan they may not have had the opportunity to take in most cases.

2. What you need to know about an unsecured loan?
An unsecured loan involves borrowing money from a lender without having to supply any collateral (such as personal property) for security purposes. Usually the term is no more than 5 years. In the current financially straitened times, being approved for this type of loan usually means you have had no or little trouble maintaining a positive credit report that reflects your accountability to pay what is owed in a timely manner. However, don’t expect it to be cheap! Though base rates are at 0.5%, loan rates start at about 8% for even the most prime credits! If you have had a questionable credit history then rates quickly hit double or for some even eye-watering triple digit interest rates! Clearly it pays to maintain a good credit record!

How individuals can choose the best loan possible
Which is the best kind of loan for you? It depends on your circumstances and requirements. Are you happy to secure your home or would you rather not? Is the interest rate and repayment term important to you? Weigh up these factors and you can determine which is right for you.

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Choice Loans is in a privileged position of having access to ALL Secured Loans lenders in the market. If you need short term cash and either are a tenant or you don’t wish to offer your house as security you could get an Unsecured Loan.

Bridging loans can be the right solution for individuals or companies if they need short term financing for investments, usually real estate investments. As the name clearly shows such loans are a temporary solution until you manage to obtain money from another source or to get a long-term loan. For example, if you just found your dream house, you absolutely want to buy it but it will take a while until you manage to sell your current home, you can use this type of loan. You will be able to purchase the new property and you’ll have enough time to sell your current home for the right price. However, you need to remember that such loans shouldn’t be a first choice for individuals or businesses. They come with relatively high interest rates and unless you are certain that you will be able to repay them after a short period of time, you may be better with other finance options.

Advantages and disadvantages of bridging finance
The biggest positive of this type of loan is that it allows you to take advantage of real estate investment opportunities. Bridging lenders can generally approve loans quickly especially if you have a low Loan-to-Value. If you are certain that you’ll be able to repay it fast then it’s a good solution. However, it’s important to opt for a deal with no early repayment charges so you can clear the loan immediately when you have access to better finance.
Bridging loans also come with disadvantages. Access to such immediate finance comes at a cost: interest rates are with a few points higher then for long-term loans, there are also arrangement, valuation, legal and possibly broker fees to be paid on top so make sure you know all the costs before signing in for such a loan. Before getting such a loan it’s wise to use a broker and shop around for the best terms.

Types of bridging finance
There are two main types of bridging loans: closed bridge and opened bridge. If you already exchanged on the sale of your old property, the chances for the sale to fall through are very low. Thus, the lenders will approve a closed bridge financing for you. If you’re in this situation, it’s important to discuss two aspects with the lender: first of all, find out if the lender can offer you a no early repayment deal. Secondly, ask about mortgage options. It’s easier for you to refinance your closed bridge loan with a long-term mortgage through the same lender – less paperwork.
If you didn’t put your existing property on the market or you simply weren’t able to sell it yet, but you want to go ahead and purchase a new house, then the lender will offer you an open bridge loan. Get one only if you are sure you will be able to sell the old property in a few months and repay the high interest rates loan otherwise it will quickly become very expensive.

Copyright © 2011

Choice Loans is a Loans, Mortgage & Commercial finance broker provide Bridging Loans, Secured loans and Payday loan lenders in the UK.

If you are struggling each month to pay your bills and you seem to go deeper and deeper into debt, maybe it’s time to get some help. Debt management services are a good option, providing you with tailored solutions for your financial problems. Debt advisors can suggest a course of action to you that will get you out of debt, without negatively affecting your credit score.

Why getting debt management help
When you juggle with debts from multiple creditors, such as several credit cards, personal loans or payday loans, you are probably paying high interest rates on each of them. Also, in such a situation it’s easy to forget about the repayments for a certain credit card, for example, which leads to even higher interest rates and more debt – it’s a vicious cycle. If you ask for assistance from a debt advisor, the first step will be to take into account all the loans you might have. Then, the debt advisor will analyse the interest rates for each loan and will try to figure out the right solution for repaying all of your debts. Usually, this means consolidating the debt, by using a loan from a single lender, with a better interest rate, to consolidate all your debts. Once you do that, it will be a lot easier for you to remain financially disciplined, since you have only one monthly repayment. Consolidating debt also saves you money each month, because the debt advisor will help you find better interest rates. If consolidating the debt is not an option for you, the debt advisor will negotiate with your lenders to achieve better terms for you; this could mean stretching the length of the credit period, obtaining better interest rates and so on. Also, you will benefit from financial advice on how to organize your personal finances to avoid falling in the same debt trap again.

How to find reliable and affordable debt management services
There are lots of organisations providing such services, from non-profit organisations to private companies specialising in this field. With non-profit organisations, the advantage is that you don’t have to pay any fees. However, the quality, the efficiency and the timeliness of the services might not be what you need. This is why it’s better to purchase professional services from reputable financial consultancy companies. Make sure you perform a background check and read testimonials and reviews on a certain company before entrusting them with information about your financial situation. Ask details on the services they provide and make sure you will pay them fees only if they manage to obtain definite results. The debt management help market is not a very regulated market so you need to be very careful when purchasing services in this area.
Also, you need to keep in mind that your personal commitment to becoming financially responsible is the most important part of the equation. If you manage to consolidate your debt, but you still keep missing repayments, you will end up back where you started!

Copyright © 2011

Choice Loans is a Loans, Mortgage & Commercial finance broker provide Bridging Loans, Secured loans and Payday loan lenders in the UK.

An unsecured loan is a loan you obtain without collateral. There are multiple advantages associated with this type of loan, but also some disadvantages. Applying and obtaining the loan is pretty simple takes very little time. A lot of different kinds of applicants are accepted by lenders for this type of loan: fully-employed, part-time employed or even unemployed, homeowners or tenants. Also, you have the freedom to use the money in any way you wish. However, since you have no collateral on the loan, the interest rates are usually higher then those on secured loans and the sum of money you can get is generally limited to £5,000 or £10,000 pounds.

Advantages and disadvantages of an unsecured loan
If you need some cash fast, this type of loan can help you a lot. Most lenders approve the loan in a matter of days. If you have bad or no credit history, such a loan it’s a good way to build good credit history and obtain better interest rates in the future. Also, unsecured loans can help with debt management. If you have a lot of credit card debts with very high interest rates, the best strategy is to get a loan that comes with better interest rates and to fully pay your credit card debt. When applying this strategy, a secured loan or a remortgage is the best idea. However, not all people have those possibilities. If you are a tenant or a homeowner who can’t remortgage, usually any type of unsecured loan will have better interest rates than your credit car. A plus too is that the loan is not related in any way to your home, which means that, if you experience financial difficulties, your home will be safe. Another major advantage is that most of the loans come with fixed interest rates for the entire repayment period, offering peace of mind over repayments.
But this type of loan also has some disadvantages. Since there is no collateral, the lender will give you money based on your credit history. If you have poor credit history, you’ll likely have a high interest rate. This loan is a great solution for times when you need some cash fast but you should only apply for one only if you are certain you’ll be able to cover for the monthly repayments. Piling up debt will complicate your financial situation.

Find help with debt management
If you are experiencing financial difficulties, getting professional advice is a good idea. The first step for clarifying your financial situation is to make a list of all your debts and to analyse the interest rates you are paying for them. If possible, try to obtain a new, cheaper loan and cover for the old debts. When you can’t find the right solution on your own, you can ask for help from Debt consolidation advisors. They can provide you the whole range of solutions to consolidate your debt: individual voluntary arrangements, debt management plans or even bankruptcy.

Copyright © 2011

Choice Loans is a Loans, Mortgage & Commercial finance broker provide Bridging Loans, Secured loans and Payday loan lenders in the UK.

Bridging loans can be the right solution for individuals or companies if they need short term financing for investments, usually real estate investments. As the name clearly shows such loans are a temporary solution until you manage to obtain money from another source or to get a long-term loan. For example, if you just found your dream house, you absolutely want to buy it but it will take a while until you manage to sell your current home, you can use this type of loan. You will be able to purchase the new property and you’ll have enough time to sell your current home for the right price. However, you need to remember that such loans shouldn’t be a first choice for individuals or businesses. They come with relatively high interest rates and unless you are certain that you will be able to repay them after a short period of time, you may be better with other finance options.

Advantages and disadvantages of bridging finance
The biggest positive of this type of loan is that it allows you to take advantage of real estate investment opportunities. Bridging lenders can generally approve loans quickly especially if you have a low Loan-to-Value. If you are certain that you’ll be able to repay it fast then it’s a good solution. However, it’s important to opt for a deal with no early repayment charges so you can clear the loan immediately when you have access to better finance.
Bridging loans also come with disadvantages. Access to such immediate finance comes at a cost: interest rates are with a few points higher then for long-term loans, there are also arrangement, valuation, legal and possibly broker fees to be paid on top so make sure you know all the costs before signing in for such a loan. Before getting such a loan it’s wise to use a broker and shop around for the best terms.

Types of bridging finance
There are two main types of bridging loans: closed bridge and opened bridge. If you already exchanged on the sale of your old property, the chances for the sale to fall through are very low. Thus, the lenders will approve a closed bridge financing for you. If you’re in this situation, it’s important to discuss two aspects with the lender: first of all, find out if the lender can offer you a no early repayment deal. Secondly, ask about mortgage options. It’s easier for you to refinance your closed bridge loan with a long-term mortgage through the same lender – less paperwork.
If you didn’t put your existing property on the market or you simply weren’t able to sell it yet, but you want to go ahead and purchase a new house, then the lender will offer you an open bridge loan. Get one only if you are sure you will be able to sell the old property in a few months and repay the high interest rates loan otherwise it will quickly become very expensive.

Copyright © 2011

Choice Loans is a Loans, Mortgage & Commercial finance broker in the UK provide Best Remortgage Deals, Turkish Mortgage and also Help with Debt Management.

There are a lot of reasons for considering a remortgage. When your initial mortgage deal comes to an end, you might notice a significant increase of the interest rate and hence your monthly repayments. If that’s the case, a remortgage might work in your favor, helping you to obtain a better interest rate or to release equity. If you already have a lot of equity in your property, remortgaging is a good way to consolidate your other debts. You have the opportunity to borrow money at an attractive interest rates and use it to cover debts with very high interest rates, such as credit card debts.

When it comes to the best remortgage deals, there are several things to consider, beside the interest rate: the fees that the new mortgage is carrying, the overall annual percentage rate, the standard variable rate the mortgage will revert to or how long the remortgage process will take. Even if the interest rate sounds good, other expenses can actually turn the remortgage into a pretty expensive deal! Be sure to ask the lenders about the total costs of the remortgage. Also, you need to evaluate remortgage offers from as many lenders as possible, in order to find the one that suits your needs. If you decide to go with your existing lender, then the remortgage process should be fairly easy and fast for you; however if you are shopping around for offers from other lenders you could feel overwhelmed by numerous possibilities and for this reason hiring a mortgage broker is helpful. He can help you select the best remortgage deals and file your remortgage applications quickly and effectively.

Are buy to let mortgages a good idea?
If you’re interested in buy to let mortgages UK offers you great opportunities. The principle of buy to let mortgages is very simple: borrowers hope that, by renting the newly purchased property, they will be able to cover the monthly repayments of the mortgage and become owners of the property with very low costs. Well, this can work, but only under certain conditions. First of all, you need to find a property in a promising area. It will be very difficult to find tenants in a place where people don’t want or don’t need to be. Economically dynamic areas, where a lot of students, young professionals and temporary employees live, with good public transportation services and appealing surroundings are the best. Before deciding to invest your money, research the market, to make sure that the rent is enough to cover for the monthly repayments. Also, you have to consider the fact that the interest rates can go up, while the rent may not, or that the property may not always enjoy 100% occupancy. Ask yourself if you will be able to cover the monthly repayments on your let to buy mortgage without the rent revenue. All in all, when it comes to buy to let mortgages UK is the land of great investment opportunities, but only if you choose the right property to buy and carefully assess your options.

Copyright © 2011

Choice Loans is a Loans, Mortgage & Commercial finance broker in the UK provide Best Remortgage Deals, Turkish Mortgage and also Help with Debt Management.