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.
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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
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