A Guide to Loans in the Bridging Sector

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A Guide to Loans in the Bridging Sector
Are you thinking about taking out a bridging
loan, but dont quite understand what this means?
If so, then youve come to the right place.
Below, we have provided you with a brief overview
of this type of loan. While they may appear
complex on the surface, theyre actually
relatively straightforward and easy to
understand.
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Confusing vocabulary
Confusing vocabulary one of the biggest reasons
that people are confused about these loans is
that the loans go by a number of different names.
These include. Bridging loans Bridging
finance Short term loans UK Auction
loans Auction finance Swing loans Mezzanine
finance Mezzanine loans (although, strictly
speaking, mezzanine lending is slightly
different, people use the terms interchangeably)
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About bridging loan
Whenever you come across these terms, they are
referring to the same thing short-term loans of
large value that people and businesses use for a
variety of reasons. What is a bridging loan it
is a short-term loan of a large value. They are
most often used to purchase properties, but they
do have a number of other applications too, such
as to deal with cash flow problems, to buy
businesses, and to fund refurbishments prior to
sale. Whats special about this type of loan?
From the above description, you might think that
this is like any other loan that you might
arrange through your bank, but this simply isnt
the case. There are a few things that make short
term loans UK unique, and these include
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The Bridging Loan
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Few things that make short term loans UK unique
1. Very short terms on very large borrowings. For
instance, with some lenders, you can borrow up to
500,000 for just 24 hours. 2. Fast turnaround.
With traditional lenders, when taking out a loan
of more than 10K, it can take between a week and
a month to arrange and, with the very large
sums, such as those involved with property
purchase, it can take even longer. However, with
bridging loans, it can take as little as 24 hours
to arrange. The longest it will take is five
working days. This represents a marked shift from
large-value loans, such as mortgages. 3.
Special interest rates. These loans have
particular interest rates that set them apart
from longer-term borrowing. Typically, you will
pay between 1 and 1.7 of the loan each month
that you take it out.
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Types of high-value lending
How are bridging loans similar to other types of
high-value lending? There are a number of ways in
which bridging loans are similar to other
high-value loans, such as mortgages. These
include 1. Secured loans bridging loans are
secured against assets of a similar or greater
value to the loan. This is exactly the same as a
mortgage. You dont necessarily secure it against
the home being purchased, but it is common to do
so. With bridging loans, you can secure the loan
against more than one property, which is unusual
within the financial markets.
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Same type of fees..

• Fees you generally have the same type of fees
  for a bridging loan as you do with other types of
  loan. These include a set-up fee, a procuration
  fee, legal fees, administration fees, and
  interest rates. There are also late payment fees
  too.
• Contact Us
• Head Office
  London Office
• 9 Riversway Business Village 1 Berkeley Street
• Navigation Way, Preston Mayfair, W1J 8DJ
• PR2 2YP
• T 01772 788888 T 0203 282 7188
• F 01772 788887
• E info_at_mayfairbridging.com,
  Wwww.mayfairbridging.com

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Mayfair Bridging
Head Office 9 Riversway Business
Village Navigation Way Preston PR2 2YP T 01772
788888 F 01772 788887 London Office 1 Berkeley
Street Mayfair W1J 8DJ T 0203 282 7188 E
info_at_mayfairbridging.com, website
www.mayfairbridging.com