Friday, March 23, 2018

What You Need To Know About Bridging Loans

property investments
Bridging loans are actually a relatively simple form of financial instrument.When used correctly, a bridging loan can be a fantastic way of facilitating a property purchase that might otherwise be unavailable to the buyer. Of course, they aren’t right for everyone and there are some alternatives on the market that may be a better option. Bridging finance should be treated as a short-term solution and can be more expensive than a traditional mortgage, but with these costs and risks comes the potential to unleash possibilities that wouldn’t be available with other types of finance.

Bridging loans remain popular with borrowers because of their ability to ‘fill the gap’ between the purchase of a new property and the sale of an existing one, or simply if capital is needed quickly. A classic problem for buyers is that their capital needed for the purchase is locked up in an existing property. A bridging loan is a short-term borrowing facility that provides the borrower with the capital to help complete on their new property, which is then later repaid when the old property is successfully sold.

Bridging loans aren’t just used by traditional buyers. Bridging finance is often used by landlords and property developers looking to buy property at auction, where quick access to finance is needed to secure purchases. These buyers will normally use bridging loans, at a higher rate than a mortgage, to secure quick funds, and then look to re-mortgage the property later. Of course, if a developer is looking to buy a property, renovate and then sell on quickly, bridging finance could be a fantastic option for borrowing that can be easily repaid once the renovated property is sold.

For more ‘standard’ buyers, bridging loans help grant access to deals that would be impossible otherwise due to funds being tied up in their current home. To use an example, let’s say a couple owned a home worth £250,000 with a mortgage of £150,000. They want to move to their new dream home worth £400,000, but the vendor will only sell based on contracts being exchanged within a month and completion within 6 weeks. In this timescale, a sale of their current home is unrealistic, so bridging finance can be used to help fill the gap. The bridging company would lend the couple the funds to purchase the new home, and once their existing property has sold and the mortgage repaid, the equity that remains would be used as a deposit for a mortgage on the new property. Once the mortgage is arranged, this capital would be used to repay the bridging loan.

Of course, the example above does not come without risk. Borrowers need to ensure they are aware of the interest rate they will be paying, and are reliant on their existing property selling at a viable price. If market conditions change the borrowers could be left unable to sell their existing property and with both their existing mortgage and the bridging loan to repay.

For the reasons above, bridging finance should always be treated as a short term borrowing solution. Rates will be higher than a traditional mortgage, so it’s important for the borrower both to keep up with the repayments and refinance onto a lower rate product as soon as the sale of their old property has been completed.

Bridging finance can be secured in a number of ways. Lenders vary in size and style, and in recent years the rise of P2P or crowdfunded lending has also opened up another source of funding for potential borrowers. In all cases, it’s always sensible to look for an accredited source of funding, which in the UK will be in the form of FCA approval. Bridging finance companies are normally adept at working quickly, the product relies upon fast approval and capital being made available to borrowers in short time frames.

In the right situation a bridging loan is a powerful product that can help the borrower secure property that would otherwise be unavailable to them, but they aren’t without their risks or alternatives so it’s important to take a balanced view on their use. A bridging loan can help secure a dream home for a family or a desirable project for a developer, so when used correctly they are a useful option to add to the toolkit of options available to borrowers.

Monday, March 12, 2018

Know How High Blood Pressure Affects You and Your Insurance Plan

insure your health care
In today’s fast-paced world, the number of lifestyle diseases is on the rise. Contraction of high blood pressure, one such lifestyle disease, is witnessing an increasing trend in India. Such a medical condition may have an impact on your quality of life. Besides, it may also affect your chances of obtaining a health insurance policy.

Effect of high blood pressure on your health

Consistent high blood pressure, sometimes referred to as hypertension, has numerous effects on the human body, if left uncontrolled. Following are a few complications that may arise due to hypertension.

1. Damage to the heart

A rise in blood pressure may result in coronary heart disease as well as heart failure. Besides, it may also force your heart to work harder so as to pump blood to the rest of the body, thus causing the left ventricle to stiffen. This, in turn, increases the chances of heart attack or cardiac death.

2. Damage to the brain

Not keeping your high blood pressure under control may result in weakened blood vessels of the brain. It may also cause blood clots in the arteries, thereby resulting in a stroke. Besides, hypertension may also result in dementia or mild cognitive impairment.

3. Damage to the kidneys

Hypertension may cause damage to the arteries that are present around the kidneys. It may lead toan interference with filtering blood effectively, which may result in kidney failure. Uncontrolled hypertension may also cause glomerulosclerosis or renal artery aneurysm.

Besides the aforementioned effects on health, a spike in blood pressure may cause vision loss, angina (chest pain), peripheral artery disease, and nerve damage, among others.

Effect of high blood pressure on insurance

In order to shield yourself from any hospitalization expenses that may arise due to hypertension, you may invest in health insurance for high blood pressure. However, those opting for a high blood pressure health insurance policy need to keep a few aspects in mind.

• High premium

Health insurance companies consider existing diseases as a parameter for selecting premium rates. Having high blood pressure may, therefore, result in an increase in the rate of premium. These high premiums are charged so as to offset the various risks caused by hypertension. Hence, those suffering from this medical condition may have higher expenses associated with medications and regular consultations from their doctor.

• No coverage

While some health insurance companies may decide to increase the premium rates, some may exclude coverage for your blood pressure condition. Besides, any ailments that develop in the future as a result of your high blood pressure may be excluded as well.

Ultimately, it is the decision of the insurance provider to charge a higher premium or to exclude your ailment. Also, some insurance providers may offer health insurance for high blood pressure patients with a certain waiting period, wherein patients may avail of benefits upon completion of the specific waiting period.

Taking adequate measures

You may take necessary steps in order to reduce the risks associated with high blood pressure. Taking the required measures will also help you avail of lower rates on high blood pressure health insurance premiums.

You may take your medication on a regular basis so as to control your high blood pressure. Besides, you may adhere to a healthy diet that reduces your intake of fat and sodium. You may also keep a control over your weight. Most importantly, you may try to maintain a stress-free life. Given that stress is one of the major reasons that cause high blood pressure, you may resort to meditation and other forms of relaxation.

Chances are that your insurer may offer limited coverage of health insurance for high blood pressure levels. Therefore, following a healthy diet and lifestyle will not only keep various health-related issues under check, but also result in lower insurance rates.

Sunday, March 11, 2018

A 7-Point Straightforward Plan for Getting Out of Debt

out of debt punch
Debt might be good in some instances; however, when not properly managed; debt can be a very serious encumbrance on your odds of attaining financial freedom. When the summation of your debt payments each month is higher than your monthly income, your financial situation might look bleak and hopeless.

Unfortunately, many folks who have a massive debt burden from unpaid bills, payday loans, and credit card debts often throw in the towel to file for bankruptcy. The problem however is that filing bankruptcy is not always the best solution and some folks never recover financially once they take the bankruptcy escape. If you are willing to try one last time; below is a straightforward 7-point plan that can get you out of debt and get your finances back on track.

Stop the denial and seek help

The first step is to accept the stark reality that you have a huge financial problem and that you won’t be able to fix this problem without some help. You may want to sign up for credit counselling so that you can understand the root cause of your financial misfortune and learn how you can proactively avoid getting into a deeper rut.

Debt consolidation is another great solution that could reduce the weight of your financial debt by combining multiple debts into a single loan and extending the term. You’ll also need open up to your family and friends so that you can access support – they won’t invite you to potentially expensive hangouts and they might be able to lend you money at little to no interest.

Start paying off high-interest debts

The second step is to start paying off your high-interest debts such as payday loans and credit card debts. Paying off your high interest debt will free up money that you can use to pay down the principal on other kinds of debt. For instance, if you owe $5000 in credit card debt at 28.99% and you owe a credit union another $5000 at 12% interest, paying off the credit card debt first will free up the $120.79 monthly interest that you would have been paying on the credit card debt. You can then apply the $120.79 and any other money you make to reducing your debt to the credit union.

Stop using your credit card

The third step is somewhat similar to the second step on the plan in that you need to stop using credit cards until you’ve paid off your debts. Credit card debt is high-interest debt, the fact that you were contemplating bankruptcy suggests that you have less than excellent credit and you’ll be attracting high interest rate debts. While trying to get your finances in order, avoid charging new expenses to your credit cards – if you can buy stuff in cash or with your debit card, you need to take the time to ask if it is a need or want (that you might probably postpone).

Adopt a frugal lifestyle

The fourth step is to start living frugally as part of efforts to reduce your expenses and to have more money left over to pay off your debts faster. The art of being frugal includes cooking simple meals instead of going to restaurants or diners to eat. Making your own coffee sounds cliché but it is still cheaper than Starbucks. Instead of paying money to attend concerts, use social media hashtags to find free entertainment events near you.

You only need a car to take you from point A to point B, if your auto payments are killing you, “downgrade” to a smaller model. Public transportation is pretty decent in most cities, you don’t always need an Uber – carpooling is another smart option.

Begin to repay loans to family and friends

Lastly, you need to take proactive actions to keep your relationships with family and friends cordial – money matters can make a relationship go sour twice as fast. If you have borrowed money from family and friends when your finances went downhill, this is the part where you start paying back those debts. You should also try to pay back those loans with a little interest payment even if your lenders have not asked you for interest payments. Not everything can be quantified in financial terms but a friend (or family member) that lends you money is worth their weight in gold.