In today's fast-paced world, many people find themselves in need of quick financing to bridge the gap between purchasing a new property and selling an existing one. This is where fast bridging loans come in.
A fast bridging loan is a type of short-term financing that can provide you with the funds you need in a matter of days, rather than weeks or months. In this blog post, we will discuss the benefits of fast bridging loans, including the rates and costs involved.
Fast bridging loans are typically used for situations where time is of the essence, such as auction purchases or when a property is about to be repossessed. They are also useful when you need to complete a purchase quickly in order to avoid losing out on a property you've had your eye on. In these situations, a fast bridging loan can provide you with the funds you need to complete the purchase in a matter of days, rather than weeks or months.
Fast bridging loans are typically secured against your existing property, which means that the lender has the right to sell your existing property if you are unable to repay the loan. The interest rate for a fast bridging loan can vary, but it is typically higher than a traditional mortgage. For example, if the interest rate on the fast bridging loan is 1.5% per month, the total interest and fees on the loan would be £45,000.
It's important to note that fast bridging loans are a short-term solution and it is important to have a plan in place to repay the loan as soon as possible.
Additionally, it is important to use a bridging loan calculator to determine the total cost of the loan, including interest and any additional fees, and compare it to the alternatives.
While the interest rates and fees on a fast bridging loan can be high, they can be a cost-effective solution when compared to the alternatives. For example, if you were to lose out on a property you had your eye on due to a lack of funding, the costs of renting or buying a new property in the future could be much higher than the cost of a fast bridging loan.
In conclusion, fast bridging loans can be a useful solution for many borrowers who need quick financing to bridge the gap between purchasing a new property and selling an existing one. They are typically used for situations where time is of the essence, such as auction purchases or when a property is about to be repossessed.
While the interest rates and fees on a fast bridging loan can be high, they can be a cost-effective solution when compared to the alternatives. It is important to have a plan in place to repay the loan as soon as possible and to use a bridging loan calculator to determine the total cost of the loan.