In these tough and volatile economic times, most
people are aware that both secured and unsecured loans are on the rise, mainly
as people look to make up for any drops in income through borrowing money. What
is less known though is the rise in the amount of bridging loans that are also
being issued, with a number of specialist companies now having to employ extra
staff to cope with the demand being placed on them by members of the public
eager to use their services.
It has been estimated by one
West One Loans – that the UK bridging lenders will be
issuing loans to the tune of A1 billion by the middle of 2013. In 2010 the
bridging marker was worth approximately A700 million, but rapid expansion has
seen an A50 million increase in this valuation just in the first quarter of
2011. What are the reasons for the large increase in demand to bridge loans and
do each industry sector share the same optimism?
Well, the main increase for this increase is due to
housing shortages which currently grip the country. People are reluctant to
sell their homes for the current valuation – which is very low – and therefore
there is more competition for each home that enters the market. To win an
offer, a potential buyer must be able to make a good offer, which can often
only be achieved with the help of a bridging loan. This is further made clear
by the fact that many homes are bought by those who can afford to buy at
current prices easily, such as property investors and those who want to buy.
This means that competition for homes is increasing.
Another reason for the increase in bridging loans is
the fact … » Read more
One of the many benefits of having your own home is
being able to take advantage of homeowner loans for whatever additional funding
you may need. Whether you intend to purchase a new property, buy a new car,
finance a home improvement project or even consolidate bad credit, utilizing a
loan should help make any of these endeavors a possibility. As considering
other types of loans to apply for, it is important to first look at what
homeowner loans are and how to use them.
As the name implies, homeowner loans require that your
home be used as collateral for whatever amount of money you want to borrow. Any
form of collateral serves to assure a lender of your complete intention to pay
your debt off or have the collateral repossessed once you are unable to
continue doing so. Factors relating to how much your home is worth as well as
instances of having borrowed against it in the past may affect the amount of
financial assistance that will be handed to you. Although it may be very
tempting to take out a large amount of money, borrowing as little as you can
and then requesting for an arrangement that will let you make fixed monthly
payments will make it easier to manage your budget. When determining how long
you would like to pay your loan off for, think about both the short and
long-term consequences. Try and pay off as much as you could each month to
lessen the years you will have to spend in paying your lender back.
In general, they are known for lower interest rates
than unsecured loans, along with far more flexible and longer repayment terms.
Homeowners may go over the many secured loan options made available online
which need … » Read more