Interview 1 Bridging loans
Bridging loans is that where the buyer is buying a property and selling another property at the same time, it may be that the date if entry to the new house will differ from the date of sale of the existing house.彠买房姌卖房同栶进行栶 就出现Bridging loan.
Features: 1. Bridging loan is short-term bridging finance.
2. It can be quickly arranged.
3. Its interest rate is more expensive than usual mortgages.
4. There are 2 types of loan. One is open-ended and another is closed ended. loan. In the case, John and Mary had already decided the date and amount for selling their house. Thus, the bridging loan should be a ‘close-ended’ loan.
Cost of new property 175,000
Less mortgage -120,000
Plus outstanding mortgage +40,000
Bridging loan =95,000
The principle of lending.
Using principle of lending to decide whether lend money to the couple or not. PARSERS
1. Personal Aspects- character, capability, capital 诚信度
The lender has to raise questions that will help confirm the honesty of the borrower. And borrowers have to provide educational qualification and experiences in certain fields. Personal information including time at address, name& title and telephone number.
2. Amount and purpose of the loan.贷款目的
The lender will take account of the borrower’s ability to repay the loan. It consist of an examination of the borrower’s income, expenditure, assets and liabilities.
3. Repayment method and timing偿还来源
The lender needs to know the salary of the borrower or the sale of assets such as shares. For a business the repayment will be coming from future cash flow.
4. Safety margin and security.
Security minimizes the lender’s risk but could not avoid risks. Lenders need to know that the valuation of the security and make sure that if security went though the right pledge procedure.
5. Expediency. 权宜 变通性
Occasionally decisions on lending are made...