It is vital to fully grasp the risks associated with lending of any type before entering into a legally binding agreement.
Missed payments will result in further fees and charges from your lender:
Lenders can take you to court if agreed payment terms are not met and they have to chase you or a cheque payment you make is returned unpaid
By understanding bridging loan risk you are better able to evaluate your exit strategy and plan to mitigate loan risk as much as possible.
Breaching the loan agreement by failing to repay the bridging loan or interest on time or by letting the property without consent, for example, may result in your property being repossessed.
An eviction order can be obtained which would mean that you would have to vacate the property. The property can then be sold to redeem the outstanding debt and any additional costs and charges your lender may apply, although if the funds raised exceed this, the remainder would be due to you.
If the funds raised do not cover your debt, you will be subject to legal action to pursue the debt from any other assets you may own. Any asset can be seized and sold to repay the bridging loan, including real estate.
If seized real estate can’t be sold within acceptable timescales due to a slump in the market for example, your lender may appoint a Law of Property Act (LPA) Receiver to manage the property on their behalf. Any income from this will go to the Lender.
Think carefully before securing other debts against your home. your home may be repossessed if you do not keep up repayments on a mortgageREQUEST A CALLBACK
When you need to raise money from property or land you own, a residential bridging loan can help you:
We’ll arrange your residential bridging loan quickly and easily.