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Short term loan (Bridging Loan)

Speak about loan, actually everypeople like to doing this things as an alternative from their problems. Actually there any short tem loan and also long term loan. But here I wanna talk anout the Short term loan. Actually everyone can be caught short sometimes near the end of the month with an un expected  bill or urgent need for money for a car repair or vets bill. Small value short term loans are often called payday loans. For larger amounts of money which require security, bridging loans are still available even now within the credit melt down.

Loan actually deal with payday loans, because a payday loans are often granted without a credit check or credit scoring process and they rely on the lender getting enough control of the bank account of the person when their pay day comes. Typically the lender takes £25 fee for every £100 lent. Actually short term loan is more secured on property that usually called Bridging loan.

Why this to easy because in this loan involve a 1% lenders fee and a 1% brokers fee, and have rates from 1% to nearly 2% per month. Bridging loans usually have a maximum term of around 9 months before the repossession process starts. Its often hard to get bridging finance without some sort of exit route in the form of a formal mortgage offer, or contract of sale for another property.

But even this so easy but this loan are really expensive in fees because usually this brigding loan need some insurance and also lawyers because actually this involved taking a second charges on property already with a first charge mortgage on it. hmm, hard to understand. Bridging loans are great for purchasing property at auction where using the auction property as the security is difficult. Bridging loans will always require a credit check which will leave a footprint in the borrower’s credit file, but some short term loans or payday loans can be done without a credit check.

From here we should understand that even short term loan are realy usefull for us, but there many conseQuences that we should pay inside, so before take this kind of loans actualy is better to consider all things before make a decision. In practice, bridging loans can be used to enable the purchase of a new property pending the sale of an existing property, to release equity quickly within an existing property, to provide cash until additional long-term mortgage funding is put in place or until the existing property is sold.

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