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Tesco Bank was established to provide simplified yet intelligent financial services for ‘real’ people across the UK. Despite starting out as a small sub-brand with limited services on offer, Tesco Bank now has more than 8 million customers and continues to grow.

Financial Services Offered by Tesco

Bridging Loans from Tesco

Bridge finance is a borrowing product that is primarily used for property purchases. It is designed to cover a short-term gap in a person’s finances. In general, it is taken out for two or three months at a time. In circumstances where somebody buying a house has to make an initial down payment on a new mortgage prior to selling an existing property, bridging finance can help.

What is the rate of interest?

Given the unique nature of bridging loans, the interest is higher than loans provided by traditional high street banks such as Halifax, Lloyds and NatWest. You sometimes can have interest payments ‘rolled up’, which means you will not pay every month but pay a lump sum at the end of the agreed term instead. This makes it useful for those without the required funds at the start of the loan.

How to Apply for Tesco Bridging Finance

Any company or individual can apply for a bridging loan online. The actual process is quick and easy to complete. Bridge loans can be used for practically any reason, provided the borrower is at least eighteen and the purpose is legitimate. These loans always require some form of asset, such as property or land as security.

Bridging finance is always provided as a secured loan, which means that the loan provider requires first or second charge over a property or the land that is being financed. If the debtor is a company, the bridging provider may require additional security. The idea is that providing security for the loan company guarantees that the loan will be paid back. Without any assets, an application for bridging finance won’t be approved.

The chief concern for online bridging lenders is how and when the loan will be paid back. Lenders must be sure that when they advance funds, they will eventually be settled by the debtor in full. The value of the asset is used to calculate the LTV or loan value of the bridging loan, which works in the same way as a mortgage provided by one of the bigger high street banks, such as Barclays, Santander or the Yorkshire Bank. This illustrates the loan in comparison with the worth of the property being used as a security asset. Ergo, the overall loan must fall within the LTV.

Bridging Loan Calculator

A bridging finance calculator is a specialist tool that will provide a good overview of the expenses associated with acquiring short-term finance. Of course, there are many loan providers operating in the UK, all of whom calculate their interest in unique ways, offering various rates of interest whilst having different fees and associated costs. As an independent broker, we always source the most suitable financing option that offers the most advantageous deal for you.

Bridging Loan Calculators Explained

A bridge loan calculator is very similar to other financial calculating tools such as mortgage calculators, but instead of working out the monthly repayment figures, a bridging loan calculator provides detailed information on the amount of interest charged each month and the actual facility fee.

It is of paramount importance to bear in mind that the actual interest amount only represents that interest amount itself, which does not cover the capital repayment. Bridge loan interest charges can be organised so that they are added to the loan and paid when the loan is redeemed or paid monthly.

To get the best quote available, please do not hesitate to contact us. We are always glad to provide in depth quotes that show you the interest charged along with all other fees.

Commercial Loans from Tesco

Commercial loans are short-term borrowing products that are sometimes renewed once the initial borrowing period has elapsed. These loans are used to fund capital expenditures, which includes expenses associated with running a business. Commercial loans are often obtained from banks or credit unions. They are usually secured against the assets of a business.

In order to be approved for a commercial loan, a business must be viewed as a good credit risk.

Before you apply for finance in order to cover the cost of buying a new car or fitted kitchen, you should always use a loan calculator as a prerequisite. This will provide a good insight as to what you can apply to borrow and what this might cost each month to repay before deciding on any given loan, whether it’s for personal or business use.

Tesco Mortgages

Commercial Mortgages from Tesco

A commercial mortgage is typically used in order to buy a business or its associated premises. An initial down payment of 25% to 40% is usually required and the terms can last between 12 months and 40 years.

Obtaining a commercial mortgage is dependent on the company’s ability to meet the repayments. When you apply for this type of finance, the performance of your business will be taken into account and underwriters will base the interest rate and charges in accordance with this. A professional valuation of your company’s finances will also be required.

Before applying for a mortgage, you can use an online mortgage calculator to gain a good insight as to how much you can borrow and what your repayments will be. This applies to all mortgage types, such as landlord mortgages.

Help-to-Buy Loans from Tesco

Help to buy is a scheme backed by the government that can help a first time buyer purchase a property with a 5% down payment.

How Help to Buy Actually Works

There are a couple of ways that the Help to Buy scheme can help you:

Homeowner Loans from Tesco

Homeowner loans are only made available to those who have already taken out a mortgage. This type of borrowing is often referred to as secured borrowing since the loan is secured against an asset. However, this may be repossessed if you fail to repay on time. Although this diminishes the loan provider’s risk, it represents a significant risk to the borrower who’ll have their property sold in order to recompense the lender if things go wrong.

How Much Can I Borrow?

The amount you are able to apply for varies between lenders, but most homeowner loans usually range from £50,000 to £250,000 or higher. This is because secured loan lenders feel more at ease when lending to those borrowing against an asset.

How Soon Can I Repay My Homeowner Loan?

Owing to the large amounts of credit associated with homeowner loans, the payments may be spread up to 20 or 30 years if required. The extended length of this term can mean applicants can take advantage of lower interest charges, but they should always remember that in total more interest must be paid in accordance.

Can I Settle My Homeowner Loan Early?

In most cases, you can settle the balance early, but there is often an additional charge incurred as a result of this. The actual figure will be added to the balance at the time you request to repay the outstanding amount.

Career Development Loans from Tesco

These are bank loans that are used to fund training courses that can help you progress on your chosen career path. You can usually borrow between£600 and £10,000. The actual loan is normally offered at a reduced rate of interest with the government covering the costs whilst you are in education.

Borrowing criteria:

To qualify, a course must:

Repayments and Interest

A Professional and Career Development Loans is a bank loan that must be paid back. You begin to repay the loan, plus any interest after the first month of completion.

The government will cover the interest while you are studying and for one calendar month after your course has finished.

How to Apply

While many of the financial products and services provided by Tesco Bank can be applied for online, others require in-person meetings or telephone consultations. In any case, we can help you pinpoint and apply for the perfect product for your needs. Give a member of our customer support team a call today, or send us an email with an outline of your loan requirements.

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