Mortgage & Debt

You have a business and need a short term and fast loan? If so, you might find that the best option for you is business bridging finance.

Bank Lending

Most people, when thinking about raising capital for a business, would immediately go to their bank for an overdraft or some other loan to be secured on the companies building or other assets.

There are advantages to this course of action, as well as some draw backs. The loan would probably have a relatively cheap interest rate and will be provided by a bank or lending institution you have used or at least heard of before. Loans that have low rates are often the most difficult to obtain, as the price reflects the potential risk, so, to qualify for cheap rates there will be strict criteria. Your business and likely all the directors, will need to have clean credit and have provable income in the form of accounts or at least a reference from an accountant. Loans from high street banks can take 6 weeks or more to put in place, not ideal if you need some cash next week!

Assuming that your business can wait for a couple of months for the money and can meet the application criteria it makes sense to go for the cheaper loan option, obviously the more your business pays for finance the less profit you are going to make.

Fast access to capital

But, what happens if you need to raise money quickly and for a short period of time? You could try business bridging finance. It was often the case that bridging finance was used to do just that, bridging the gap between the purchase and sale of a property and, in many case, it still is.

Bridging is also used as a way of raising capital quickly and with as little fuss as possible. Of course when borrowing significant amounts of money there will always be questions to answer and hoops to jump through, but a bridging loan application is normally less stringent.

The lenders may not be ones you are aware of at the moment but some soon will be. Using bridging finance is becoming more main stream as investors, developers and business owners use it to raise buy or develop property or inject cash to their business.

How fast can you get the finance?

In theory, a bridge can be put in place within a few days from initial enquiry. So you could call us on a Monday morning and have the cash in your account by the end of the working week, sometimes within 48 hours. In practice it generally takes longer than that but 10 – 14 days is very do able.

This is idea for a business that needs to raise cash quickly, say to pay for a large order, but knows that there will be income within a short period of time that will allow for the loan to be paid back. It could also be the case that the business takes out a longer term mortgage or facility with their bank which will have cheaper interest, but they cannot wait for the bank to put it in place.

Using a bridge for development

Bridging can be a flexible and useful tool for all professionals and businesses and that includes those in development. So, if your business is property, bridging can be a fantastic finance resource for you to call on. In the current market there are property bargains to be had and property professionals are looking to take advantage, particularly buying a unit that needs work. Some short term finance lenders will even offer loans to help with the cost of doing the work, allowing even more flexibility.

The Federal Trade Commission has stepped up its investigations and prosecutions of mortgage relief scam artists. Since the start of 2013, the FTC has obtained settlements from over 20 individuals and companies involved with scamming distressed homeowners. In the most recent cases, two individuals and seven companies settled FTC charges that they victimized more than a thousand people through "mass joinder lawsuits" and "forensic loan audits." They violated the Mortgage Assistance Relief Services (MARS) Rule, which was set up to curb deceptive and unfair practices related to such services.

The FTC contends that Sameer Lakhany, Brian Pacios, Precision Law Center, Inc., Precision Law Center LLC, National Legal Network, Inc., and Assurity Law Group, Inc. targeted consumers with a mass joinder scam. They promised homeowners that they could stop their foreclosures or obtain some other mortgage relief if they joined together to sue the lenders. The defendants represented themselves as a law firm called Precision Law Center, charging between $6,000 and $10,000 in up-front fees. But every suit was dismissed soon after it was filed; the victims saw none of the promised relief.

One of the scam artists, Lakhany, was also involved in a "forensic loan audit" scam, along with The Credit Shop, LLC, Titanium Realty, Inc., and Fidelity Legal Services LLC. These defendants called themselves nonprofit organizations, with domain names like "FreeFedLoanMod.org," "HouseholdRelief.org," and "MyHomeSupport.org;" but really they sold people an auditing service, which supposedly found lender violations in mortgage documents. The defendants charged $800 to nearly $1,600 for this service, which never led to a single favorable loan modification for the victims.

The FTC settlements require the defendants to surrender many assets and pay $4.75 million in restitution. All except Assurity Law Group, Inc. are banned from mortgage relief and debt relief services; Assurity is required to surrender $100,000 in funds and has been ordered to cease any deceptive practices. In February, the FTC settled with another predatory group, composed of Ryan Zimmerman, Consumer Advocates Group Experts, LLC, Paramount Asset Management Corporation, and Advocates for Consumer Affairs Expert, LLC. These entities also used the forensic loan audit scam, and charged people almost $2,000 or more for the audits-they failed to make good on their false claims. Besides receiving a $3.5 million judgment against them, the defendants are banned from marketing relief services or products, and from making any misleading claims about any other type of product or service.

In January 2013, eight other defendants settled with the FTC, for selling fake relief services to distressed Spanish-speaking homeowners over the phone. The defendants-David F. Preiner, Daniel Hungria, Freedom Companies Marketing, Inc., Freedom Companies Lending, Inc., Freedom Companies, Inc., Grupo Marketing Dominicana, Freedom Information Services, Inc., and Haiti Management, Inc-collected over $2 million from people over three years. They simply didn't provide the services they said they could. Part of this settlement, in which the defendants received a $2.39 million judgment, bans them from marketing relief products or services, and from making misleading claims about anything they advertise.

Even though there are many types of credit accounts (aka primary trade lines) out there for consumers, there are few for those with bad credit. Those who are looking for credit enhancement only have a few options available, one of which is a credit account that does not generate an inquiry. This type of credit account can help you to enhance your credit rating, as it helps you build your credit without a credit inquiry or deposit.

Our primary trade lines look and work just like traditional credit accounts, although they do not add an inquiry to your credit report. They are also ideal for those who have had a divorce or illness, or for those who simply don’t qualify for a line of credit due to lack of credit history. These credit accounts show banks that you are able to pay your monthly payments, and that you are taking the initiative to establish a positive payment history. Over time, if you remain diligent and pay your trade line accounts on time, lenders may offer you unsecured credit cards - known as standard credit accounts, which require no deposit.

Just like other credit accounts, our primary trade line accounts do have disadvantages that can hit you like a ton of bricks should you use them irresponsibly. Anytime you don’t pay your bill on time, you will be reported delinquent to the credit bureaus. If you pay your bill on time though, you won’t have to worry about having late payments added to your credit files.

For those who have slow payments, charge-offs, a bankruptcy or simply need to start building credit, our primary trade line accounts are a great place to start. These accounts can help you improve your credit scores, providing you pay your bill on time. Once you have kept your trade line account in good standing for a period of time – you’ll have the satisfaction in knowing that you are taking the required steps to enhance your credit profile.

There is a growing number of first-time buy to let landlords in the UK. With buy to let mortgages offering attractive rates, rent prices hitting new highs, and house prices setting records, landlords are seeing impressive returns.

This doesn't mean, however, that success on the buy to let market is easy and requires little effort. If you are new to the buy to let game then you might want to take a look at the tips below to ensure that your investment pays off.

1) Realize that you are taking a risk

Purchasing a buy to let mortgage is an inherently risky endeavour. This doesn't mean that you shouldn't do it or that by being smart and working hard you can curb some of this risk, but you always need to be aware of it in order to encourage yourself to play it safe with your money.

Think about whether rental income is going to be enough to cover monthly mortgage payments, or what you are going to do during times of gaps in tenancy. Having savings to fall back on can be a big help.

2) Find the right mortgage

There are a lot of competitive deals on the market right now, so make sure you pick the best one. Don't just stay with your current bank of there is a better deal somewhere else. You are also going to need to decide between a tracker and a fixed rate mortgage. With interest rates low, now is a good time to take advantage of a tracker, but if you are worried about financial security, then a long-term fix is probably better for you.

3) Choose the right location

Location really is almost everything when it comes to real estate. The location of your property is going to be a huge determining factor in whether or not you will be able to attract tenants. Does the property have access to transportation? Is it near shops and schools and other services that the prospective renter would like to be near? These are the sorts of factors that you are going to need to consider.

4) Choose the right type of property

Most first time landlords are choosing to purchase either flats or two-bedroom houses, as this will appeal to the widest possible market, especially young people. Family houses are more risky for the first time landlord, but depending on the area and on what you can afford, they can nevertheless be a good choice.

If you can attract a family to your rental property, then you will be less likely to have to deal with tenancy gaps and you might even save money on maintenance! Speaking of maintenance...

5) Take maintenance costs into account

You need to remember that as the landlord you are going to be responsible for the upkeep and maintenance of the property. You need to provide tenants with and energy performance certificate, make sure all appliances are in proper working order, and that the property complies with fire safety regulations. All of this may get costly, so you need to calculate this into your spending and savings and budget accordingly.

6) Keep taxes in mind

Your buy to let property is going to incur two unique taxes: an income tax on the rental income you receive, and Capital Gains Tax on the profit you make if you ever sell the property.

However, you can also save money by deducting a lot of allowable expenses from your taxes, such as mortgage interest payments, utility bills, insurance premiums, and letting agent fees. Speaking of letting agents...

7) Use a letting agency if you don't have the time to do everything yourself

Managing a property is hard work. It is going to require advertising, dealing with tenants, assessing the property on a regular basis, and performing the aforementioned repairs. If you do not have the time to do all of this yourself, then you need to consider using a letting agency.

If you do choose to work with a letting agency then you also need to take account of letting agents' fees. This can be as low as 7% of your rental income, and so may be worthwhile for you.

The excitement of making just the minimum payment on your credit card balance only lasts a while. Millions of Brits, who carry a balance, discover the danger of minimum payments after they feel the sting of the accompanying rotating charge. According the latest statistics, the average UK household owes £6,020 in debt. Such a debt would take 291 months to pay off and cost £8,453.00 in interest if you paid only the minimum payment.

Even if you had a legitimate reason for accumulating high-interest debt, your top priority must be to pay it off. Start with a solid debt reduction plan and stick with it until you're debt free. Here are five strategies for eliminating credit card debt.

Target one card at a time

If you owe money on multiple cards, it will take a while to wipe out all the debt. It's hard to see the horizon and stay motivated when you have years of credit card payments ahead of you. Give yourself a boost by paying off one card. Target the card with the lowest balance and put as much money into your payments as you can afford until you've cleared the balance.

Alternatively, you can target the card with the highest utilization rate (your balance/card's limit) and pay it off. Clearing the balance will give your spirits and your credit score an instant boost since credit utilization directly impacts your score.

Negotiate a lower interest rate with your creditors

Although lenders are usually reluctant to negotiate reduced interest rates, it's still worth a try. If you have a decent credit score and have been responsible with your payments and card use, the lender might consider your request. Reducing your interest by one or two percentage points can lead to hundreds of pounds saved every year. Compare rates and get offers from competing lenders to bring to the negotiation. Your lender might the willing to match the offer.

Take note: Your creditor will need to review your credit report before they make a decision, and they could reduce your card's credit limit if they don't like what they see.

Transfer your balance

A growing number of consumers are surfing their credit card balances from one card to another in order to get the best interest rates. While that could potentially lead to hundreds of pounds in savings, there are risks involved if you don't plan ahead.

Balance transfers are only effective if you commit to repaying the transferred balance within the introductory low rate period. That will give you 12-30 months, depending on the card. After that, the rates will go up, and you'll be forced, once again, to pay high interest rates.

Important: Balance transfer cards should only be used for paying off debt, not making new purchases. So don't use the card for shopping, as the low interest rates may not apply to new purchases. Also, most lenders charge a balance transfer fee, so factor that into your costs when you're comparing cards.

Get a loan

If you're falling under the burden of high interest rates, consider borrowing money to pay off your cards. Your friends and family may be willing to help. But if not, banks and peer-to-peer lenders offer loans with fixed interest rates that are 20-30 times lower than credit cards. That means you could save hundreds in interest on your debt. If you have excellent credit and a stable salary, you could qualify for loans with competitive interest rates.

Pay the minimum

If you're cash strapped, you can always pay the minimum, but try to make two minimum payments within the month. Interest is accrued on a daily basis, so earlier payments will reduce your average daily balance and your interest charges. Keep up with the minimum payments twice a month until your debt is paid off.

Spiraling interest rates make it a challenge to pay off debt. Ideally, you should not incur it in the first place, but life is all about learning from your mistakes. The tried-and-true methods listed above should help you to develop your battle plan for tackling your debt. Remember, the most valuable instrument in this battle is your commitment to your financial goals.

Signing up for a mortgage is a necessity for many people who wish to own their own home. There aren't many people who can afford to spend several hundred thousand pounds for the home of their dreams at one time. Mortgages allow people to borrow money from a lending organization like a bank to finance the home they've always wanted. They will typically have anywhere between 15 and 30 years to pay back the money, plus interest. When signing up for a mortgage, it is important to not accept the first offer you find. Shopping around is one of the keys to getting the best rates to finance not just your home but the future of your family.

When you get ready to apply for a mortgage, the first step to take is to research your existing credit history. Look up both your credit report and your credit score to get an idea of how much you can expect to pay in interest should you be approved for a mortgage. Because of the housing crisis of the late 2000s, credit standards for new mortgage applicants remain very tight. New mortgage rules have been unveiled as recently as 2013 and are not expected to loosen in the near future. As a result, your credit history has become your most valuable asset with regards to securing a home mortgage. If you want to get the best rate on a mortgage, you need to have a credit score of at least 720. Though it is still possible to get decent rates with a score of around 680, interest rates will gradually start to increase as your score drops lower.

If you know you won't be applying for a mortgage for a few years, start taking steps to repair your credit today. Pay down as much debt as you can and get your finances under control. If you have any past accounts that have gone into collections status, pay down those debts so they can stop hurting your credit score. Though repairing a person's credit score takes a long time, getting on financially stable ground today will definitely pay off when it comes time to borrow money for a house. Every little step of progress helps when it comes to getting the best rates on a mortgage.

If you already have a home mortgage, consider refinancing to lock yourself into more favorable rates. Due to the housing crisis of the last few years, home rates all over the world remain at an all time low. If you purchased your house several years ago and are current on your payments, refinancing can be a great way to lower your monthly minimum payment, your interest rate or both.

Once you've applied for a mortgage and have been approved, remember one key piece of advice: the process is not officially over until the loan "closes." When you've been approved and your home offer has been accepted, you will need to provide a large number of documents to the bank. Most mortgage brokers require these documents to be in hand as quickly as 24 hours after the process begins. Do not delay in getting these documents to the right people, as missing your deadline could see the whole process fall apart before your eyes.

If your mortgage is "underwater," consider refinancing. Underwater mortgages are ones where a customer owes more money on the house than the property is actually worth. When the economy all over the world was in better condition a few years ago, these people had a difficult time refinancing and getting more favorable terms and conditions. Because the market is in its present condition, these people are finding it much easier to get the results they want. Even if you've tried to refinance in the past, now is the time to try again and hope for the best.

If you are looking for USDA home loans, it is highly recommended to get in touch with a reliable provider. These home loans have helped a lot of people with low budge to buy a home of their own. These home loans are your perfect answer to buy a home with zero down payment. They work the best for low income based people. It does not matter whether you are having trouble paying the mortgage, the experts offer break with subsides. Apart from buying, you can also opt for this loan to renovate, or even for repairing.

USDA home loans – What does it mean?

The United States Department of Agriculture (USDA) has set certain guidelines for the program. This is only the reason why it is called as the USDA rural development loans. With the help of this, you stand to lower the cost for the mortgage home buyers. It works for both rural as well as suburban areas. It is one of the best and effective programs in the market that has gained immense popularity among home buyers. It has helped a number of people to buy the house of their dreams. Given below are some of the advantages offered by these loans:

1. People living in the selected rural areas are eligible for the rural home loans. It does not matter whether you already have a home you can opt for these loans.

2. The rural home loans offer you to buy the house with no down payment. This helps you to purchase the house at most reasonable prices.

3. It offers zero down payments. The no money down feature has actually helped many people to buy a home easily and effectively.

4. These rural home loans have low mortgage insurance requirements.

5. These loans can be used to buy a new house, renovate the house or even repair the properties.

6. The loan is completely based on the appraised value of the property and not the sales price.

7. It further helps you to get the best and energy efficient homes.

8. It offers loans to people who has low credit, no credit or limited credit.

9. It has no loan limits.

Apart from the above mentioned benefits, it also offers tons of advantages to home buyers. Before you apply for loan ensure you meet the needs such as clean credit history, income proof, homes to be located within the USDA areas, and more.

A reliable provider is a firm believer of customer satisfaction and offer great rural loans. They offer their services in all of Oklahoma, Texas, Kansas, California and more. These loans are specifically designed for moderate income people that are living in the rural areas. Furthermore, the experts will even customize the home loan plans according to your needs. The interest rates of these processes are low and affordable. It is extremely easy to apply for this loan. In case of any queries, contact the professional staff as they are available round the clock. Browse through the site to know more about the loans and services.