Why Lobster Lending?

The difference with Lobster Lending

is that our loans are not made over any fixed term

Many people who are not able to borrow money from a traditional high street lender end up taking out a bridging loan. Such loans are over a fixed period of, usually, between 3 and 12 months (although longer terms are sometimes available).

With a bridging loan, usually, if the borrower does not repay at the end of the term, there are significant financial consequences. In some cases interest rates can rise to 3 or even 5% a month and additional fees can be incurred until the loan is repaid. This is what we call the “bridging trap”.

With a Lobster Lending loan, there is no term date at which the loan is repayable.

This means that the borrower has the option to repay when he or she wants to but as long as he or she keeps paying the monthly interest, the loan can remain in place.

This allows the borrower to decide when it is right to repay and there is no artificial pressure created by an approaching deadline, nor any increased fees if that deadline is missed.

All our loans must be serviced on a monthly basis

although interest retentions can be agreed in certain, rare circumstances. So… if you take out one of our loans you must be in a position to make the monthly payments. All loans are repayable on demand, but we are highly unlikely to make a demand if the interest is being paid. It would not be in our interest to do so.

Do not get caught on the bridging hook. If you are thinking of taking out a bridging loan, talk to us first.