Borrow Short Term Bridging Loan, Avoid Cash Gaps

By: Celeste Parker

Buying a new house may have been on your mind for quite some time now. But you may prefer to sell your present dwelling after a few months. So the cash required to buy the new house is not available making you practically helpless to the whole situation. Do not worry as a short term bridging loan may help you in this. How? Read on...

A short term bridging loan pays for the new property that you want to buy. Then, whenever you want to sell off your existing property, you can sell it and repay the short term bridging loan. Until then, the interest will solve the purpose. This means that short term bridging loan is an interest-only loan in which only the interest has to be paid during the term. Once the property is sold, then the principal amount has to be paid back.

is a secured loan which will require an asset to be placed as security. This asset can be the same house or property which is to be sold. Once it is sold, repayment can be done. To repay short term bridging loan, duration of 1-12 months is allowed. Till then only the interest has to be paid timely.

A short term bridging loan can be of two types: closed end short term bridging loan when the sale of property has been done already and open end short term bridging loan when the sale is yet to take place. One can choose according to stage of completion of the deal.

Online application for a short term bridging loan can be highly beneficial as the search and approval is done very fast and time is saved. Also, a comparison of quotes for a short term bridging loan can help in obtaining low rates of interest due to competition. Bad creditors can also avail low rates by proper research for a short term bridging loan.

Short term bridging loan can help in filling the cash gap that becomes unavoidable in big cash deals. The rate of interest can also be brought down by proper research and comparison.

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