Still the biggest building society in the world, Nationwide is owned by and run for the benefit of its members. Providing an extensive range of services including savings accounts, mortgages, secured loans, insurance, corporate deposit accounts, personal loans, credit cards, insurance products and products offered by subsidiaries of the Society such as The Mortgage Works UK, Nationwide has a loyal following of millions of customers across Great Britain.
A bridging loan is a type of short-term loan. It’s best thought of as a temporary loan which gets you from A to B, until you’re able to secure a more long-term type of finance or clear the loan in full, perhaps using a different borrowing product such as a Nationwide mortgage or homeowner loan. That’s where the “bridge” idea comes in to play – speedily arranged financing option to help you get from one step to the next.
Nationwide bridging loans are a shorter term financing option. A bridging loan may serve as a temporary borrowing solution in a desperate or time-critical situation. They can be invaluable in helping with a property purchase that would otherwise not be possible. However, as you may be aware of with a stop-gap measure such as this, bridging loans can be a bit more costly compared to a regular loan from a bank or building society such as Nationwide.
Bridging loans can be used for a number of purposes, and can be complex in nature although relatively simple to set up. Whilst most banks have fixed rules when examining applications for a loan, bridging loan providers have a more flexible approach to lending.
The popularity of bridging finance has grown enormously over the last few years, with the high street building societies and banks such as Santander, Barclays, HSBC and the Yorkshire Bank becoming more reluctant and slower to approve mortgages. With the introduction of the Mortgage Market Review rules, mortgage applications became a much lengthier and restrictive process, which has led to a rapid growth rate in the number of bridging loans being applied for and approved.
Any limited company, trust, or person is able to obtain bridging finance by applying online. Usually, the online application for bridging finance tends to be straightforward, quick and easy to complete. Bridging finance can be used for almost any reason, as long as the debtor is above eighteen years of age and the borrowing purpose is approved by the lender.
A bridging loan requires a property (including residential, commercial property, flats, houses and investment property) or another valid asset, such as land, as security. A bridging loan is a secured a loan, which means that the lender takes first or second charge over the asset, property or land being financed. If the borrower is a company, the lender may ask for further guarantees.
The idea behind this is that by providing security for the lender you are ensuring that the loan can be repaid should unforeseen circumstances should arise. Without the ownership of these assets, a bridging loan application will not be accepted or approved.
The primary concern for online bridging loan lenders is how and when the loan will be paid back. All online loan providers will want to be certain that if they lend money, it will be repaid as promised by the borrower. The security will be used to work out the LTV of a bridging loan, which works in similar to a mortgage from a high street bank. It shows the size of the loan in comparison with the property value. This means that the total loan size offered will be proportionate to the amount of equity provided by the applicant.
Bridging loan calculators are intended to give a rough overview of how much a short-term finance facility costs. However, there are a lot of loan providers, all of which offer different interest rates whilst using different fee scales to calculate their interest in their own unique ways. As independent brokers, we’ll always provide the finance deal that offers the best possible value, based on your individual circumstances and requirements.
Bridging loan calculators are like mortgage calculators. However, as opposed to calculating month-to-month payment figures, bridging loan calculators give information regarding the lenders’ facility fee and the monthly interest charged.
It is essential that you remember the interest figure is simply the total interest amount charged, which doesn’t include any capital repayment. Bridging loan interest charges can be set up so they are either paid each month or added to the loan and paid when the loan is redeemed.
Please get in touch with us to find the best deals. We’re happy to supply quotes that detail the rates of interest charged and all other costs.
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