Short Term Finance

Short Term Finance

Short Term & Bridging Finance

Short Term Finance, Short Term Funding or Bridging Finance are all terms used to describe various forms of lending specifically intended for circumstances where the finance is only required for a relatively short period of time (generally up to 12 or 24 months maximum) and where the `exit route` is known in advance. The `exit route` is the means by which the finance will be repaid at a specific point in the future.

Short Term Finance or Bridging Finance can be arranged on a first charge (mortgage) or second charge (loan) basis, which generally depends upon the specific circumstances and the security available. There are a number of reasons why short term finance or bridging finance would be used, some of the more common examples would be:

Bridging the timescale gap between the sale of one property and the purchase of another
It may be that your property is taking longer than anticipated to sell but you have seen the property you want to buy and if you wait until yours sell you may lose it

Investment in business opportunities
A business opportunity may arise which requires you to raise capital quickly which you only need for a relatively short timescale

Buying property at auction
Many lenders offer a `pre-approval` scheme whereby they will provide an in-principal approval for finance up to a limit for a property or properties you may wish to bid for at auction

Renovating property with a view to selling
Capital may be required to renovate a property you own with the plan being to market and sell it once the renovations are completed

Providing short term capital whilst a longer term arrangement is in the pipeline
Whilst waiting for a mortgage or remortgage to complete a very short term arrangement may solve some immediate issues

Awaiting an inheritance or paying the required inheritance tax
People waiting for an inheritance to be processed who require immediate funds or who require the funding to cover any inheritance tax

Clearing unexpected HMRC and general business expenses
Paying urgent bills or demands without suffering short term cash flow or capital adequacy issues

Providing short term capital until investments mature
Whilst waiting for the known maturity of an investment short term funding could provide that much needed capital

As is often the case, Short Term Finance or Bridging Finance could be the perfect tool for these and many other scenarios as speed is often of the essence. It has been known for transactions to be fully completed within a single working day.

If you have a short term finance need and think short term or bridging finance may provide the solution, or if you need help and guidance on what the best solution for your circumstances may be, call us today on 0845 219 0427 or 0121 308 9114 to speak to an adviser. Alternatively complete our short enquiry form and an adviser will call you back to discuss your needs.

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE SOME TYPES OF BRIDGING AND SHORT TERM FUNDING.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. For secured loans a broker fee up to 10% of the loan amount borrowed may be payable on successful completion. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England at Mere Green House, 46-48 Mere Green Road, Sutton Coldfield, West Midlands B75 5BT (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

© 2020 Caboodle Financial Services Ltd


call
message