Bridging Industry Rejoices Over Latest Figures

Bridging Industry Rejoices Over Latest Figures

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 company

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?

Main Increase

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.

Bridging Loans

Another reason for the increase in bridging loans is the fact …

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Benefit From a Homeowner Loan

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.

Homeowner Loans

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.

Secured Loans

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 …

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