5 Really Useful ways of raising money now

Lots of people have been asking me about raising money – and there are 5 key ways:

1. Unsecured loans
For smaller loans, up to £25,000, an unsecured loan may be the best route. The problem for some people is that many of the unsecured loan companies will only lend over a short period, usually 7 to10 years. This means the monthly repayments can be quite high. Rates are generally about 8%, and you can easily go online to check out companies like Alliance & Leicester, or Tesco Loans. If you are refused lending, we may still be able to get an unsecured loan for you using a specialist lender. The rates they charge will depend very much on your credit score and your level of income.

2. Mortgage – further advance.
Many people may be able to get a further advance on their mortgage. The disadvantage of this is that you are increasing the amount borrowed against your home, and this could put your home at more risk. The advantage is that the interest rate is usually very low, and you can select the number of years over which you pay off the loan. We will carry out a financial risk analysis for you, and present you with a report and fill out all the forms for an application.

3. Remortgage
Sometimes it makes more sense to release money by doing a full remortgage with a new lender. You may have no penalties if you leave your current lender, or the rate offered by a different lender may cheaper than your current product. We can sit down with you and work out the cost benefits of the different options.

4. Secured loan or second charge
This is a mortgage on your property, but through a different lender to your main mortgage. Secured loans are usually more expensive than a main mortgage but they are often cheaper than unsecured loans. It is important to fully discuss the implications of a secured loan – we can do this for you, and give you a financial risk analysis report before you make any commitment.

5. Bridging finance.
In certain circumstances you may want a loan for a short period of time,say 6 months. You want to pay the costs when the loan completes rather than month by month as with most loans.Perhaps you need to finish a renovation before selling a property, or you want to purchase a Buy To Let at auction. The auction house will want prompt payment but the mortgage lender can easily take 3 months to release mortgage funds. Bridging finance can release cash in days, however it is expensive, and must be taken with a great degree of caution. We can provide all the advice and information you need to make sure you reach an informed decision.

For some Really Useful help:
Telephone 07855 799 807
Or email david@usefulmortgages.co.uk
http://www.usefulmortgages.co.uk/