A Flemish City and Bridging Loans
The word bridge comes from old German and in the lowlands there is the beautiful medieval city of Bruges which is the Dutch spelling of a structure that by definition is something that spans an obstacle.
It’s therefore apt that a short term cash loan needed whilst waiting a longer term arrangement should be called a bridging loan.
This kind of loan is typically offered to help people during property transactions where a subsequent sale, let, or more traditional long term mortgage is expected but not immediately available.
Bridging loans are frequently requested by property developers to cover the cost of preparing a property to let. The owner of a run-down city family house may detect an opportunity to convert the building into a number of small apartments.
It may require a sum of let’s say around thirty thousand pounds to do the conversion before the resulting new apartments can be let. If the developer does the arithmetic he can calculate the number of weeks the conversion will take and how many weeks it will take with full occupancy to recover the money.
Alternatively once the conversion is complete the owner may get a more traditional long term mortgage from a bank or building society and be able to pay back the earlier short term loan a little before time.
Because banks have in recent years become much less inclined to lend money the bridging loan has become a popular short term arrangement for many other types of business. There is no restriction for the purpose of the bridging loan and every application is looked at on its own merits.
A self-employed businessman may see a once in a lifetime’s chance to by some bankrupt stock knowing that over a short period he or she will be able to sell it at a very good profit. It’s just about conceivable that he might get money from the bank but that is usually a very slow process and by the time it’s offered the opportunity may have gone.
With this type of loan from Mayfair Bridging the great advantage is the speed of the offer and the delivery of it to your bank.
For bridging loans visit our official website.
