Borrowing a bridging loan will be a good option for you, if you are looking for finance to buy a new property, but you have not sold the existing one. People often get stuck in such situations when they find their ideal property and don’t want to loose it due to lack of sufficient funds. Fast bridging loans makes it possible for you to buy the property of your interest even before selling your old property.Do you want to learn more? click here
Bridging Finance are short term loans. These loans are available for those who want to buy a new property but are not able to sell their current property immediately. It helps the borrower to bridge the financial gap and fulfill his/ her requirements until he/ she is able to arrange the necessary finance. Therefore by borrowing a bridging loan you will be able to meet the financial requirements which come up between selling your present property and buying a new one.
You can borrow a bridging loan from a principal lender by providing collateral. You can provide your house or any other property as the collateral while borrowing the loan. The amount approved as the loan is based on the value of the collateral provided. These are short term loans, therefore, the repayment period in short and the rate of interest is higher compared to the other types of loans. However, there are lenders with low rate of interest. The maximum limit of amount offered as loan by the lender, varies from one lender to another. In case you fail to repay the loan within the fixed time period, the collateral placed by you is repossessed. It is always advisable to do a proper research on the amount of loan offered and the rate of interest, before you finally borrow a loan. You can find a lot of information on bridging loans on the internet itself.
You can avail a bridging loan even if you have a bad credit history. For you the rate of interest can be considerably higher, but you also get a chance to improve your credit score.
Bridging loans can be borrowed to fulfill different financial needs whether it is for personal reasons such as vacation, marriage or buying a new property for personal needs; or for commercial reasons such as buying an office premises, buying resources etc.
The principal lender offers two types of bridging loans – closed bridging loans and open bridging loans. Closed bridging loans are for those borrowers who have already sold their existing property. A closed bridging loan is usually for a set period of time. Open bridging loans on the other hand are for borrowers who want to buy a new property but have not sold their present property.
In short, a bridging loan is the best solution to bridge your financial gap in times of emergency. It will help you to buy your ideal property even if you are not able to sell your existing property in time. Whether the property is for your personal need or commercial requirements, it will help you to cover the financial gap. But while borrowing a bridging loan you need to remember that the repayment period is short and the rate of interest are comparatively higher.