Sometimes, finding the cheapest bridging loan rate isn't the answer to your commercial mortgage problems. The rate is important but so is the level of service offered by your loan broker.
Sometimes, you just need a bit of inspiration and a well placed quote often does it. try this one for size:
We are delighted to announce that we have formed a joint venture with commercial loan specialists, Veritas Financial, to offer their market leading range of commercial finance products and ultra competitive bridging loan rates.
Veritas have been providing bridging finance, development finance and commercial mortgages for over 5 years now and we are excited to be teaming up with them.
What is bridging finance?
We understand that people don't know what bridging finance is or how it can work for them which is why we will do our best to show you the advantages and disadvantages of short term lending.
Despite bridging finance becoming more prevalent in recent years, with a growing number of people appreciating the flexibility that it offers, many brokers, investors and borrowers are still unfamiliar with bridging loans and how they can be used.
The UK's leading bridging loan master broker, Veritas Financial has put together a comprehensive beginner’s guide to provide people with the information that they need to go forward and set up the loan. From bridging loan uses, time periods and loan amounts to repayments and interest rates, it provides a detailed overview of when to use bridging loans and what to expect when taking out this type of funding.
By using this beginner’s guide, brokers can help their clients make educated decisions when financing an investment, property transaction or cash flow issue, understanding how and when to use bridging loans to facilitate financial situations effectively.
A bridging loan is typically used for:
We are extremely pleased that we are now going to be providing finance to jellyfish events, a Wirral based candy cart company and party planner.
As they have seen their business increase by over 200% in the last 3 months, the guys at jellyfish events asked us if we could provide a funding package so they could buy more equipment and also fund the expansion of the party and events business.
Naturally, we were delighted to come onboard and we were able to provide them with a no nonsense, fuss free loan so they could buy 10 new candy carts and 5 photobooths. In addition, jellyfish state that they are looking to expand their services into other areas using the tried and trusted franchise model and the last quarter of 2016 should see them achieve their goal of 5 new franchisees.
We get this a lot.
People apply for a loan and then get surprised when they are declined because they don't believe they have any poor credit on their file. However, a lot of people are forgetting a really obvious and really common issue...Late payments or arrears on a mobile phone.
You may think that missing a few payments on your monthly mobile phone contract won't matter but the reality is that it will. It is still a credit agreement and all of the mobile phone networks report their customers payment history to the credit reference agencies, so if you are late or in arrears, this will be reported on your credit file and of course, when you apply for a loan, you will be credit searched and this adverse credit information will appear and may stop you getting approved for a loan.
So if you take just one bit of information from us, make sure you stay up to date with all of your existing credit repayments, otherwise it could affect you getting the loan you need, if if a new loan would consolidate some existing debts and actually make you better off at the end of each month.
It's amazing to think just how big an industry crowdfunding is. It is practically mainstream with over a dozen major players that we can think of right off the top of our head and yet, the whole industry owes a debt of thanks to the original crowdfunder...Zopa, without whom there would be no crowdfunders at all.
They have lent over £750m after having started in 2005 in a barn in rural Buckinghamshire and now look how far they have come.
Read on to find out more about Zopa celebrating 10 years of crowdfunding.
For the first time since they started lending, Borro, the upmarket pawnbroker, have launched a new, short term lending product in response to their clients who have been looking for other, small and shorter term loan options.
Full story here in Best Advice.
Acquiring not too long ago skilled its worst instances for over 20 many years, the UK's economic system is still in an unstable state and many households are nonetheless feeling the results of this. While the cost of living is constantly growing family incomes really are a stagnating and in some instances even shrinking. This has meant that the strain on household budgets has elevated drastically.
In cases like this when finances are tight, any sudden expenditures for instance broken down cars or electrical appliances could break the budget leaving significant bills unpaid. Each provider will deal with missed payments in different methods; some will prompt payment before contacting the credit score reference company, many others will simply go straight towards the company.
A credit score reference company (such as Equifax, Experian and Get in touch with Credit) is often a firm which holds the particulars of every item of credit you've ever had. In the event you miss a payment on a credit dedication and it can be reported to a credit reference agency this may present as black mark in your credit score file; consistent missed payment or inability to get contactable could result in defaults and in extreme cases CCJs.
In today's economic climate, mainstream lenders and high street banks require candidates to possess immaculate credit score history, anything under this will consequence in them declining the application. Having factors like missed payments and defaults will make you instantly ineligible for any substantial street loan.
A person with lots of missed payments and defaults are going to be stated to get a bad credit history and will consequently be deemed being a higher credit score chance. Individuals by using a spotless credit score historical past will be lower credit score possibility.
Higher street lenders can offer the most affordable costs resulting from the credit score danger of your shoppers that they are handling. However these with lower than best credit score background will have to pay higher charges for his or her finance.
One particular certain form of individual loan that is certainly bridging the gap amongst the low charge substantial street loans and also the large rate payday loans may be the guarantor loan.
Guarantor loan lenders are able to offer up to £12,000 at fair interest costs. These loans are built for individuals who are declined by their mainstream loan provider and therefore are readily out there to the basis that the applicant can discover a pal or family member to help the application; and stand as guarantor.
Frequently finding a guarantor can be challenging, but we've received some top guidelines on tips on how to strategy your pals or relatives.
The very first rule is; normally let them know the information. As a guarantor your part during the application would be to only assistance the application and assure to pay out the month-to-month repayment if the borrower ever fails to perform so. When the applicant hardly ever misses a payment, the guarantor will never be contacted.
Staying a guarantor in itself isn't going to have an impact on your credit score historical past, the sole way your credit history are going to be impacted is; if your applicant fails to make a payment, and as guarantor additionally you fail to accomplish so when prompted - this can result inside a missed payment on both the applicant as well as guarantor's credit file.
Supplying you apply that has a accountable loan company they're going to perform many checks over the guarantor (and applicant) to be able to assess their suitability for the function. Not like the applicant, the guarantor ought to have good credit score; most lenders will even call for the guarantor for being a house owner that is getting a normal income.
Always checks the lenders criteria prior to applying to make sure that the guarantor you have in mind are going to be eligible. Providing an illegible guarantor will merely slow down the method and without a doubt your probability of acquiring the finance you require.
Most guarantor loan lenders have now implemented a web-based method which suggests they're capable to offer you a very same day decision and payout giving the application is thriving.
Unsecured lending has gone through many changes over the last few years not least of all because of the move away from me OFT new regulatory regime under the FCA and this alone has made the industry sit up and take notice as they have to change their products, the loan process is under lending structures.
These changes have not just affected lenders, they've also affected brokers, IFA's, accountants in fact anyone who is involved in selling or offering authorised financial services. The products that come under this or:
second charge loans
So as you can see the changes have affected a huge proportion of the financial services industry and whilst regulation of the unsecured loan sector in particular, is a good thing, it also means that consumers are becoming more confusing other as to what they can and cannot apply for.
Not your typical high-street borrower who can walk into any branch or building society and apply for a loan, we're talking about a borrower who has a poor credit history and he would not get accepted for a loan by mainstream lender.
The only real alternative for them is a guarantor loan simply because there is no credit score on the borrower, just simply credit check so each guarantor lender can check the interim and outgoings of the individual applying for a loan, to ensure that they meet FCA rules on affordability and that's the only reason why credit check is undertaken on the applicant.
Guarantor loans allow all sorts of bad credit bubble of previously stopped an individual from obtaining any form of loan, credit or finance. The types of bad credit that can be taken into account things like mortgage or rent arrears, missed payments on a loan or credit card, late repayments on catalogue all the finance agreement or even, being outside your authorised overdraft limit, which is becoming an increasingly common problem for people and one of the main reasons why people will get declined for a loan.
As with any type of financial agreement, it is important that the borrower understands what they are getting themselves into, because a guarantor loan lender will look into the details of the loan application closely, even though the only type of credit reference they do is check on the borrowers income and outgoings, and it is important to be as truthful as possible when applying for any type of loan or finance.
The other thing to consider about any type of lending to an individual with bad credit, is that the APR is likely to be higher, much higher, than that of a typical loan that you would get from high-street bank or building society but that's the price you pay for being granted finance even when your credit history is not great.
As most guarantor loans allow for the borrower to be a homeowner or a tenant, again it is important to understand that whenever you apply for a loan as a homeowner, you need to ensure that your home isn't being offered up a security for the proposed loan. If it is and you default on your loan, then your house called (at the very worst) be repossessed in lieu of the outstanding loan repayment.
Same thing can be said of the guarantor themselves and they need to be made fully aware of the consequences to them as the person endorsing this loan, if for any reason you, as the borrower, do not make repayments on this loan and it is important that they have all the facts in front of them before agreeing to become a guarantor for your loan.
We would always suggest that whenever you borrow money, and in this case you may be others borrow up to £12,000, you should seek out the advice of a professional such as an independent financial adviser, who can tell you exactly what your loan options are and whether taking down new credit will help you in the long run, as opposed to just being a short-term fix, which is what most unsecured loans are.
Interesting story in the Daily Mail regarding the interest rates payable on personal loans and other unsecured finance.
The way lenders work is that they often borrow themselves so they in turn can lend money out to their own borrowers. The only exception to this rule is when a lender has the luxury of people paying their savings into that particular bank, like a building society for example.
However, as most loan lenders do not have savers, they have to get their money elsewhere and how much they borrow the money for, determines how much they charge their own borrowers for lending it.
In recent months, the cost of lenders borrowing money has come down massively and these savings that they are making are now being passed on to borrowers, particularly those people accessing unsecured loans via a lender that deals in bad credit borrowers.