You want to purchase a new property at the cost of selling your old one, but the time factor is against you. Such problem can arise before anyone. If you want to sell your property, then a lot of time is wasted in its valuation and other legalities, meanwhile you don't want to let the new property go away so easily. To fill in this gap bridging loan often proves to be of great help. Bridging loans are short term secured loans which comes to your rescue when you want to purchase a new property at by selling your old one. You get the amount available immediately to purchase the property.
Maximum amount and interest rate
Amount offered as bridging loan varies between ?100000 to ?400000 depending upon your need, your ability to pay back, your lender and value of the collateral you offer.
Bridging loan, being short term loan generally comes with a bit higher interest rate as loan period is short and risk involved with lender is higher. It is possible to get a cheap bridging loan if you look into offers of various lenders and then decide upon the best that suits to your interest.
Qualification for bridging loan
Qualifications for bridging loan are not highly demanding. You need to be a citizen of UK, age above 18 years. In general lenders look for good credit score before approving a bridging loan. The most important thing bridging loan asks for is collateral. Even people with ccjs, self employment, and discharged bankruptcy can avail bridging loan if they can offer collateral. So, it is never difficult to get a bridging loan approved if you have some collateral to offer to lenders.
Repayment of bridging loan
Repayment is an important part of bridging loan as it is a secured loan and in case of delays and defaults you can end up loosing your property. Also the term of loan is around a few months to a year, you need to plan out repayment very carefully in order to prevent any such situation.
With bridging loans you are now not going to let a property of your likes get away just because of the reason that you don't have enough time to sell your own property to arrange money.
