Loan For Bridging Purposes 'Can Be Of Help'
By: Abbi Rouse
Taking out a bridging loan can be of financial assistance to many consumers, an industry expert has stated.
According to Lee Tillcock, editor of Business Moneyfacts, such a loan may be able to provide valuable help with money to people who are currently in the middle of the property buying and selling process. He claimed that the form of credit can especially be of assistance to those who are looking for aid in the 'financial gap' between buying a new property and selling their old home.
Due to the impact of the credit crunch reducing access to cheap loans and other forms of competitively-priced borrowing, the editor of the personal finance publication added that bridging finance may be able to "perform an ever more important role, providing short-term solutions while that evermore elusive long-term mortgage is finalised".
And in taking out this type of credit, it may be possible that consumers can successfully cope with other demands on their spending that they may face at this time such as plastic cards, personal loans they may have already taken out, household bills and council tax repayments.
Mr Tillcock said: "The need for bridging finance can rise during times of financial duress. Repossessions are already increasing and the subsequent increasing number of lots can only serve to benefit property professionals looking for to acquire property quickly at competitive prices. Investors buying at auction have often used bridging because they are required to complete within a few weeks of a successful bid when conventional mortgages are sometimes unworkable."
The personal finance editor stated that this type of loan can be used for those buyers who want to move home swiftly, such as when a "distressed vendor needs to realise the value of their property for a quick sale". Bridging loans, it was also claimed, are often used as a means of short-term financial assistance when money is required quickly.
Speaking in recent weeks, James Molloy, product manager for AA Legal Services, reported that bridging loans should only be obtained as a "last resort". He stated that the type of loan must be considered for use during a period when the need for the money is a short-term issue, for example after the exchange of property. The spokesperson went on to claim that, as is the case with all kinds of monetary product, those considering taking out this type of loan should first make sure that they receive comprehensive financial guidance tailored to their individual circumstances.
For such homeowners, applying for a cheap low-rate loan may provide many with a financial boost. In addition, this may be of help to those experiencing times of hardship. Earlier this month, research carried out by the Association of British Insurers revealed that about one in four consumers will at some point be unemployed during their working life, with some people being out of a job for more than year. A cheap loan, however, may be able to help these consumers meet various demands on their spending during these times.
Abbi Rouse is Editor in Chief for All About Loans. Our visitors have access to cheap online loans of all types: From home improvement loans to bad credit debt consolidation loans. Visit our site today: http://www.allaboutloans.co.uk
Article Source: http://www.ArticleBiz.com
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