Short Term Bridging Loan

Remember when you were younger and you ran out of money midway through the week or month?

But some bargain caught your attention or you wanted to go out with your friends.

What did you do? Borrow some money from your parents?

In most cases you found the money from somewhere and then repaid your lender back at the end of the week, month or whenever your money arrived.

That was a Short Term Bridging Loan.

Now I have never heard any parent charging their children interest for the use of that Short Term Bridging Loan, no matter how long they borrowed for.

Unfortunately, as you get older and you need to borrow some money, it will probably be for many thousands not jut the odd "tenner".

Let's say one of these instances occurs when you are buying another house to move into. You have sold your property but the buyers of your house need more time before they can complete.

However, you don't want to lose the property you are moving into by causing any delays. But you can't complete because you haven't yet completed on the sale of your current house. The answer to this riddle is to take out a Short Term Bridging Loan for the property you want to buy to raise the deposit you need to put down.

Once the sale of your house has completed you repay the lender.

Now unless this lender is a very rich relation of yours then you will pay an arrangement fee, a small amount of interest each month and finally an exit when you pay them back.

In these circumstances you have bought your dream home using a Short Term Bridging Loan for the property purchase.

Short Term Bridging Loans are nothing new and you have been using them for years, you just never paid any interest.

So next time you see your mum or dad, thank them or better still. why not take them out for a very expensive meal.


Bridging Loan Fact
Bridging loans are only designed for short term lending and no reputable lender would enter into an agreement unless there was an exit strategy in place to pay them back within the agreed timescale.