A Guide to Bridging Finance
Bridging finance is becomingly increasingly popular in the UK with over £4 billion lent out in 2016. There is a common overlap with guarantor loans because the loan sum generally runs in the thousands of pounds and is used for lifestyle changes such as home renovations, weddings and growing businesses. There are approximately 33 lenders in the UK, according to the Association of Short Term Lenders, with the most successful lenders
Read MoreGuarantor lending safer investment than peer to peer?
Peer to peer lending has grown significantly in the UK over the last few years. According to the Peer to Peer Finance Association, lending rose to £6.5 billion in 2016 in the UK, up from £2.1 billion in 2015. The figures are based on customers borrowing up to £25,000 (Zopa) and £35,000 (Ratesetter) for personal loan use, business purposes or property finance (this could be secured). Interest rates
Read MoreWill You Help To Crown “Best Guarantor Loan Provider” 2017?
The Consumer Credit Awards are the only consumer-voted for awards that are focused on consumer credit in the UK. They’re run annually by Smart Money People, the UK’s #1 financial services review website. We’re excited to announce that this year, we’ll be adding a new category to the awards…guarantor loans, following the increased popularity of this financial product as an alternative to payday or personal loans. But we need your
Read MoreA Guide To Default Rates For Loans
What is a default rate The default rate or 'delinquency rate' refers to the percentage of funded customers that fail to repay their loans. When a customer misses repayments and finds themselves in a position where they are unable to repay at all, their loan is moved into a state of arrears, also known as default or delinquency. A customer that misses one repayment and then makes the next one or
Read MoreAre late repayments taken automatically from the guarantor?
The question: If a borrower defaults on their guarantor loan, is the outstanding balance automatically taken from the guarantor's debit account. The answer is simply, no. Whilst every successfully funded customer will have a guarantor back up their loan in case they cannot repay, if it just a monthly payment that has not gone through, the lender will always try to collect outstanding funds from the main person first and foremost.
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