From Adviser Guide: Short-term finance
Q: What happens if the borrower misses a payment?
It could ultimately result in repossession however this is subject to the usual accepted lending practice and protocols.
As most short term bridging loans do not involve monthly payments, missed payments are relatively rare, according to Alan Margolis, head of bridging at United Trust Bank.
Where a borrower misses a payment then it is a question of their engaging with the lender to resolve the matter.
Missing a payment could ultimately result in repossession, however this is subject to the usual accepted lending practice and protocols.
Paul Aitken, chief executive of Borro, said: “Although there are no penalties for missed payments, if the client miss a payment with a Borro personal asset loan, our customer credit accounts team will get in contact to advise the client to arrange payment.”