Works of art as the security for bridging loan

Bridging loans have long been present on the UK loan market. Many consumers resort to them every year when they need to move house before they have been paid for their current property and liquidated their existing home owner debt.
A bridging loan is nothing else than a short term secured loan and in most cases the borrower’s existing home is needed as the security being for this loan.
However, the online pawn broker Borro.com teamed up with bridging loan brokers ibridging to introduce a new form of short term loan accepting collateral other than a borrower’s house as security for the loan, such as sports cars and works of fine art.
The loan amount depends on the asset being offered for the loan and ranges from several thousand pounds to hundreds of thousands. Average interest rate is about 4% and there are no fees charged for the loan.
Since the loan is classified as a short term bridging loan, one is free to pay it off at any time without incurring penalties associated with early repayment.
No credit scoring is carried out on this kind of loan because it is based solely on the asset being used as collateral. The borrower will have no difficulty obtaining the loan provided the property used as a security for the loan is already owned by them.


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