Welcome to the Richard Butler Creagh blog.  Richard Butler-Creagh founded Henley Finance in 2013. After a successful career in property development, he understood the needs of the professional and their requirements in short-term bridging finance and devised a way that they could be better met in Henley Finance. Bridging loans are short-term loans, usually high-interest ones too, that can be used to get access to funds quickly. Most clients that take out this type of loan often have a need to get their hands on funds quite quickly. It is most useful for people involved in real estate especially in instances when they may need some funds to complete the purchase of a real estate and other property. Below are some tips that you should remember if you are considering the possibility of taking advantage of a bridging loan.

Know the costs involved

While it may sound simple, always make sure to be clear when it comes to the full amount of the loan and the specific portion of that amount that will have to go to interest rates and fees. It is also important to remember that the short-term loan is attached to high fees and interest rates. Among the fees that you are likely going to need to cover when taking advantage of this loan include the facility fee, the exit or prepayment fee, valuation fee, the legal fees, legal fees for the lender along with disbursements, fees for the broker, as well as bank transfer fees.

Find out about the security that is being given too

One of the most common conditions that you as a borrower will be asked for when getting the loan is to provide a certain security or leverage to the lender. This usually comes in the form of a charge against the property involved. There are also other types of security that can be used for this purpose. Make it a point to comply with the conditions attached to the loan though to make sure that there will b no unnecessary legal implications as a result.

Know about the pre-loan requirement

If you want to get a much better chance at getting approved for the loan, then be sure to know about the pre-loan requirements first. Different loan providers have their own different standards as far as pre-loan inquiries are involved. Do due diligence to make sure that you have all the documents needed. Be aware that the costs are likely going to be yours to shoulder so, be prepared for that. Make sure to provide the lender with the necessary explanation too on how you are going to fully repay the amount that you are borrowing. Ensure that you will have sufficient funds that should help you do this.

Timing is important too

While it is known for loans like these to be expedited at a much faster rate, they may take longer than what you expected if you are unable to do things the right way. This is also why it is highly suggested that you should find the right solicitor to guide you along the way, one who knows all the legalities involved and one who has been processing these kinds of loans before will be able to extend to you some very effective practical tips to speed up your application.

Watch the video below to learn more.

Learn about bridging finance and how it can benefit you by reading about Richard Butler Creagh online. You can also follow Richard Butler Creagh on Twitter here.

Welcome to the Richard Butler Creagh. Richard Butler Creagh founded Henley Finance in 2013. After a successful career in property development, he understood the needs of the professional and their requirements in short-term bridging finance and devised a way that they could be better met in Henley Finance. If you are thinking of getting a bridge loan, you are going to need an exit strategy. It is a plan that you will need to put in place which should help you repay the loan when it comes to the time for you to pay it.

Bridging loans are specifically designed as short-term finance solutions. While it is true that they can be quite useful when they are needed, they do tend to be a little more expensive when compared to long-term debts. This is the reason why it is important for you to get them repaid on time or you will end up getting slapped with interest rates that would only increase the debt even further.

The moment that you hit the end of a loan term, you will need to get the loan repaid in full. Being unable to do this would mean that your account will have to be in default. Since a situation like this is certainly going to have a negative effect on your credit file, the best thing to do is to get the situation resolved as quickly as possible.

You will usually have the option to extend the loan or to get it refinanced. Extending the loan would mean that you may no longer be able to keep rolling the interest up. Also, lenders may refuse to get the loan renewed. There are others that will likely increase the interest rate too. If you will go the refinance route, it can get quite expensive. Most of the time, you are just delaying what is inevitable- which is to pay the loan back- when you take this road.

There is a number of exit strategies that lenders may consider taking in the event that you are unable to pay the monthly fees back. They may sell the primary property, sell some other investments, refinance to a mortgage that is set for a longer-term, sell the secondary property, or sell shares.

Borrowers should always consider an exit strategy against whatever available timescale you have. Remember that it is better to have to extend the borrowing period longer than to actually run out of paying time. Most lenders that offer bridging finance will usually not charge fees for early repayment if you will choose to get the funds paid earlier than what was agreed.

If you are trying to sell a property, other investments, or shares, always check the market liquidity first as well as the likely length of time that the transaction is going to be completed. Property sales often take longer to get expedited even longer than what was initially expected. It is important to know the risks of possible buyers dropping out, failing their mortgage applications, as well as taking too long a time to get the process completed. Remember that buyers will usually not be sympathetic to the situation and will often take their sweet time and their own pace before pursuing the purchase.

Watch Richard Butler Creagh's video below.

It helps to get a good understanding of the options available to you so you know that you will be able to meet your financial obligations out of taking advantage of a bridge loan. Learn more about how you can get the most out of a bridge financing by reading about Richard Butler Creagh online.