HSBC is one of the world’s largest banking and financial service organisations. Founded in 1865 to finance trade between Asia and the West, HSBC has grown to become a global banking powerhouse with more than 38 million customers. According to the bank, its purpose is to “enable businesses to thrive and economies to prosper, helping people fulfil their hopes and dreams and realise their ambitions.
HSBC bridging loans are mainly used for property transactions. They are designed to cover a temporary shortage of credit, hence the term ‘ bridging’. Generally, they’re taken out for only two to three months. In situations where somebody buying a property needs to make a down payment on a brand-new mortgage before they have sold their existing property, a bridging loan could be a suitable idea.
Due to the specialist nature of bridging finance the interest is greater in comparison to loans from traditional high street banks, such as Lloyds, NatWest and Halifax. You can sometimes have interest payments ‘rolled up’. This means you will not pay on a monthly basis but rather a lump sum at the end of the agreed term instead. This is helpful for those people without the required funding at the early stages of receiving the loan.
Almost any limited company, trust, or individual can obtain bridging finance online. Usually, the online application for a bridging loan tends to be quick and simple to fill out. An HSBC bridging loan can be used for almost any reason, so as long as the borrower is over the age of 18 and the reason for applying is approved by the provider. Bridging loans always require some form of an asset, such as land, or property as security. A bridging loan is a secured a loan, which means the loan provider takes second or first charge over the asset, property or land being financed.
If the debtor is a company, the loan provider might need further guarantees. Without the ownership of these assets, a bridging loan cannot proceed. The biggest concern for online bridging loan lenders is when and how they will get repaid. Any online loan provider will want to be certain that if they lend funds, it’ll be settled as guaranteed by the debtor.
The security will also be used to work out the loan to value of a bridging loan, which works in a comparable way to a mortgage from one of the big high street banks, such as Santander, NatWest or the Halifax. The LTV shows the size of the loan in comparison with the value of the property.
Our calculator is simple to use and has been made to show interest charges and other costs associated with a bridging loan. There are lots of bridging finance companies that charge many different rates of interest along with many other costs. These charges differ making it difficult to offer a bridging loan quoting system online that’s capable of offering quotes for every conceivable circumstance. A bridging loan calculator is only designed as a guide.
On top of the rate of interest you’ll be paying a set of different fees when you take out a bridging loan, including some of the following:
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