UNDERSTANDING BRIDGING LOAN RISK

It is vital to fully grasp the risks associated with lending of any type before entering into a legally binding agreement.

Falling Into Arrears

Missed payments will result in further fees and charges from your lender:

  • Standard arrears Fees
  • Increasing Missed Payment Fees
  • Monthly Fixed Arrear Charge

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

Top Tip - If you are having difficulty meeting payments, contact Rapid Bridging Ltd immediately. We know all the options available to you and may be able to simply extend the bridging loan (note that this will incur extra fees and interest).

Loan Risk - Think about the risks associated with lending before you sign

Failure of Exit Strategy

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.

Top Tip - At Rapid Bridging Ltd, we have a wealth of experience and always act in your best interests – we know all the potential pitfalls and will do our best to protect you.

For more information on our loan application process and how we can help you with your bridging finance strategy
call 0208 150 7528 today.

Think carefully before securing other debts against your home. your home may be repossessed if you do not keep up repayments on a mortgage

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WE CAN HELP YOU IN THREE KEY AREAS:

COMMERCIAL

Is your business in desperate need of short term finance? A commercial bridging loan can help you:

  • Raise Capital to fund business growth
  • Overcome financial difficulties
  • Take advantage of a business opportunity
  • Fund a property purchased at auction

We can help purchase and re-finance your commercial property.

Loan Risk - Loans from 0.65%

DEVELOPMENT

It can be hard to find a development bridging loan, but we have the contacts and experience to help you:

  • Fund any type of renovation project
  • Take advantage of a bargain you don’t want to miss
  • Source finance for a property that’s otherwise unmortgageable

We can reduce the stress as part of your property development team.

Risks Associated with Lending - Loans from 0.35%

RESIDENTIAL

When you need to raise money from property or land you own, a residential bridging loan can help you:

  • Buy before you sell, to avoid a chain breaking
  • Fund property you are buying at auction
  • Release urgent finance from your property or land assets

We’ll arrange your residential bridging loan quickly and easily.

Understanding Bridging Loan Risk - Loans from 0.55%

WE WORK WITH TRUSTWORTHY LENDERS