Cheap Bridging LoansFavourable bridging loans
It' less expensive than a bridging credit, but you need to have an unclaimed real estate that you can put up as collateral, and you need to do some advance work. A 12-month credit line can be arranged on a lump sum up to 60% of the value of the loan, available to you when you are willing.
Here is an example of how such a system could work... June: If you own a £750,000 worth of real estate and, pending evaluation, we agree with the creditor that you will use it as collateral for the credit. A 12-month credit line is agreed with the creditor allowing you to lend up to £450,000 (60% LTV).
They give me a call and I arrange with the financier for a very swift reinspection of the collateral (the real estate you own is worth £750,000), only to make sure that you still own it and it still stands! Borrowers give the go-ahead to free up capital and you choose to take down £260,000 immediately.
Call me and I'll have you take £190,000 - the rest of the money. Keep in mind there are no rebates to include in your household budgets, just the 2% creditor package charge, this one ( £3,800). It is at this point that the creditor can opt for another rapid review (depending on the times actually used).
Also, for a little more sophisticated organization and only a small amount of management, every times you want to withdraw cash, you have save times and monies. Oh, and keep in remembrance that there are prepayment penalties for the first six months from the date of the first drawdown of the credit line.
The repayment period is then available for up to five years, either with a constant interest at the end of the repayment period or a certain amount of the increase in the value of the real estate.