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What Are Short Term Loans?

A short term loan is a short-term lending product, allowing you to secure finance against your property over a specified period.

Typically, these loans are very flexible and do not need to be serviced via monthly payments towards the interest or capital repayment, provided there is enough equity available in your security or securities.

It is a loan to ‘bridge’ the gap while other finance (such as a mortgage or sale of your property) is secured.

Short term loans are used mainly by clients who need quick, short-term capital to fund a property purchase. However, they can be used for other purposes.

Short term loans – other purposes.

Here are some of the other popular uses for short term loans:

  • Pay off outstanding credit or store card balances.
  • Property renovations/conversions.
  • Broken property chains.
  • Business start up, cash injections & HMRC bills.
  • Buying a property abroad/buying an investment property.
  • Pay off arrears (including mortgage arrears).
  • Auction purchases.

Short term loans – key information.

  • Loans available from £20,000 to £10,000,000.
  • Secure against all property types.
  • 1st and 2nd charge short term loans available.
  • Available from 1 to 24 months to individuals, limited companies, LLPs, expats and foreign nationals.
  • Loan to value up to 80% gross.
  • Development loans are also available.

Frequently asked questions about short term loans.

How long does a typical application take?
A standard application can take from 2-4 weeks to complete. However, each case is different.
Will my credit score be effected?
No, in order for us to get you a quote, we will use a soft credit search which will not affect your credit profile.
Does credit score / credit profile matter?
Yes, it always helps to have a clean credit profile, however, as long as the application makes sense you can apply even if you have defaults, CCJs, arrears, etc.
Will I have to make monthly payments?
No, not really… The majority of short-term loans are written on a retained interest or rolled up interest basis, which means you  do not have to pay the interest monthly, but you will have to redeem the loan and all of the interest at the point you pay off the short term loan.

Further information on short term loans.

  • No max age
  • No affordability checks needed
  • Can fund up to and beyond 100% of purchase price,
    provided additional security is being used and meets
    LTV criteria
  • All property type are considered, including age
    restricted properties, semi commercial, commercial and
    block of multiple units
  • Combination of exit strategies accepted
    *subject to lending criteria

Many people may need to consider a short term loan at some point during their lives.

However, what many people don’t realise is that each time they apply for a loan their credit rating could be put at risk by the amount of searches going against their names.

At Buckingham James, we eliminate this risk by assessing your individual criteria and matching you with a suitable lender right from the outset.

As a recap; a short term loan can be used for many different purposes including, debt consolidation, reducing a tax bill, improving your property, used for your business and much more.

As credit brokers dealing with the whole market we have access to the most competitive short term loans rates available.

Getting in touch with us, will save you time, reduce your stress and protect your credit rating.

Remember, short term loans are meant to help you and our professional and experienced knowledge of the market will help you avoid making costly mistakes.

Contact our experienced team for free advice.