Bridging Loans Available On Cars And Works Of Art
Bridging loans are nothing new in the UK. A large number of people use them every year in order to be able to move house before they have sold their existing property and cleared their existing home owner loan and released the equity from their property sale.
A bridging loan is simply a short term secured loan and in the majority of cases the security being used for the loan is the equity in the borrowers existing home.
But now a new collaboration between the online pawn broker Borro.com and bridging loan brokers ibridging has come up with a new form of short term loan using assets other than a person’s house as security for the loan, which could include anything from sports cars to works of fine art.
The loans are available from just a couple of thousand pounds and can go up to hundreds of thousands, depending on the security being offered for the loan. Typically rates are around the 4 per cent mark and there are no other fees for the loans.
As the loans are intended as short term bridging loans, they can be repaid at any time without incurring any early repayment penalties. This would normally be when the main finance has been arranged or the existing property has been sold.
There is no credit scoring carried out on the loan, as it is based entirely on the property being used as security for the loan. The only requirement is that the asset must be already owned outright by the borrower.
Paul Aitken of Borro said “We’ve been working with ibridging and have seen considerable interest in this type of finance, particularly from customers looking to invest in property of one form or another.”
“It could be their refinancing is taking longer to go through than they’d expected, or they’ve been turned down because access to credit is so much tighter.”
