Posted on 20 February 2011 by Jennifer Lothian
I am on Disability Benefit and am waiting for a settlement for an accident that happened at work. Is there anyone that would give me a bridging loan until my case was settled?
There are Lenders who may be able to help you , but I am unsure whether or not a bridging loan will be suitable for your short term needs.
A bridging loan will be secured on your home and the interest rate you pay will depend on whether or not you have an existing mortgage and how much equity there is. There will be an arrangement fee of around 2% of the amount borrowed to pay and interest will be charged at around 2% per month. There will also be solicitors fees, valuation fees and various other costs to pay to just arrange the facility.
I do not think that this is a decision that you should rush into and I recommend that you speak to your local Citizens Advice Bureau and then an independent mortgage broker with experience of arranging bridging finance.
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.