BridgingLoanFinance.co.uk Forecasts Domestic and Commercial Bridging Loan Industry to Double

The strong housing market is forcing many to use short term bridging loans as a temporary fix until more permanent finance is sourced. Total yearly borrowing expected to rise from 1 billion to 2 billion.

Yorkshire, United Kingdom (PRWEB) May 16, 2007 -- According to Damian Youell, who owns the website http://www.bridgingloanfinance.co.uk, online searches for bridging loans have doubled from 7916 in October 2006 to over 16096 in March 2007. Damian said that customers are using bridging finance for a whole lot more than chain breaking property deals. According to the British Bankers Association the value of bridging loans last year was 1 billion. However due to new and varied uses of the products this is expected to double.

Estate agents say demand in property hotspots is so strong that you need to obtain funds at lightning speed to secure your dream home. Some properties are so popular that they go to a sealed bid auction system, while some developers will only accept an offer if you can exchange contracts within a month. Fast acting buyers are using bridging loans to snatch their dream home before they lose it.

Damian of http://www.bridgingloanfinance.co.uk added that many applications are used to stop house repossessions when a mortgage account falls into arrears. The funds are released so fast that proceedings can be stopped in their tracks very quickly.

He then went on to say that the trend in people buying property at auction where payment can be needed in days not months is also a big contributor to the surge in applications.

He stated that commercial businesses are another big borrowing area where entrepreneurs are using the borrowing tool for business ventures and to cover short-term cash flow problems.

All these factors as well as the likely hood of increases in the Bank of England's base rate lead to the likely hood of substantial growth in the bridging loan industry.

Bridging loans typically cost around 1% per month and can be arranged in as little as 2 days. Amounts between £25500 and 10 million can be arranged. Terms are available from 1 month to 36 months. A valuation of your property would be required, as this would be used as security for the lender. The interest can be rolled up so you could add it to your new mortgage.

Although bridging finance is costly it can serve several purposes very successfully. It is the fastest way to obtain funds whether bridging a chain breaking domestic property or commercial business reason.

http://www.bridgingloanfinance.co.uk is a website that prides itself on giving transparent information and unbiased advice for those seeking bridging loans. They also offer an online application process.

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