What is short term lending?

Short term lending is ideal for people who want to buy a new house and start on the property ladder but need the money quickly. They make sense if you’re buying a house at auction because you’ll need cash right away.

How does short term lending differ from a bridging loan?

Bridging loans are often used to bridge the gap between buying a house and selling an old one. But this type of loan is very expensive because of the high fees involved. Short term mortgages are interest-only loans, and there are no early repayments. Our products do not charge any fees. For more information about our short term loans, contact us on 07912 076990.

How long do short term mortgages last?

Short term loans are available in two-year terms. There are no ERCs or fees for early repayments. You can choose to extend your loan for up to five years. The longer you take out a short term loan, the higher the APR (annual percentage rate). This means that the total cost of your loan will increase.

Can I get a short term mortgage loan?

Anyone who applies for a short term mortgage must be able to afford to repay the loan. Specialist Lenders will also take into account your age, current property, current earnings, and credit history. There may be some issues if you have a bad credit rating and you are applying for a shorter-term mortgage period.

Should you get a long or short term mortgage?

It always depends on you. If you can afford to pay higher interest rates and lower mortgage terms, you can apply for a short term mortgage.

Can I get a short term residential mortgage?

Yes, you can get a short term residential mortgage but you need to prove your affordability to the lender. Your income and assets should be sufficient to meet the repayment of the mortgage balance. It is always better to contact a market mortgage broker before starting your short-term mortgage application.

Can I get a short term let mortgage?

Yes, you can get a short term let mortgage too if you can pass the affordability test by the lenders. However, it is important to note that most banks won’t lend on properties that are let through a letting agent.

Is a short term mortgage suitable for me?

If you’re looking for a quick way to raise funds for your property purchase, then a short term mortgage might be what you need. As mentioned above, they are only available for a limited time so make sure you understand the full details first.

Do I need to provide proof of my income when applying for a short term loan?

The amount of income required varies depending on whether you are borrowing under the Right To Buy scheme or not. In either case, you will need to show evidence of your income. This includes bank statements showing regular payments, payslips, tax returns, or other documents.

What will be the base rate for a short term property mortgage?

A tracker mortgage usually has an interest rate that matches the Bank of England‘s base rate — which means your interest rate will change throughout the term of the loan. These types of mortgages are only available with specialist lenders, it’s always better to contact a mortgage broker before starting.

What is the difference between short-term mortgages and traditional mortgages?

There are many differences between short-term and standard mortgages. A short term mortgage is ideal for those who want to buy their dream home quickly without having to worry about repaying the loan. They are typically cheaper than standard mortgages as they don’t charge any upfront costs or fees. However, there are drawbacks to taking out a short term mortgage such as:

You’ll need to keep paying back the loan until it’s paid off.

They aren’t available for everyone. Only people with good credit ratings can qualify for them.

You’ll need to find someone else to cover the cost of the mortgage while you’re away from work.

Only some specialist lenders offer this type of mortgage, so it’s always better to get financial advice from an advisor before starting your loan application.

Can I get a short term mortgage with adverse credit history?

Yes, you can still apply for this type of mortgage even if you have had problems in the past. The main thing to remember is that the lender must assess your ability to repay the loan and cover monthly repayments. If you’ve been turned down in the past, it doesn’t mean you cannot borrow again. You just need to try harder next time.