Bridging Loans-for Lucrative Property Deals

By: Richard Pasic

Bridging loans offer are meant to provide financial help to people who are in the process of buying a new property and selling an old one. Bridging loans are secured loan because the borrower needs to put one of his property either old one that is to be sold or the new one that the borrower wants to purchase as collateral against the loan amount. As bridging loans are short term loans the interest rate is slightly higher, but that too is not much thanks to the tight competition in the market. With bridging loans you can avail good amount of money ranging from ?25000 to ?500,000 but that depends upon the value of the collateral that is placed as security. There are two types of bridging loans. Open bridging loans and closed bridging loans. If you are still looking for a buyer of your old home open bridging loan is the best option. On the other hand if you have already finalized the terms and conditions regarding both purchasing and selling of your home then closed bridging loan will suit you the best.

Bridging loans can be very useful for people in need of money in order to buy a property. Especially for those who can't sell their existing ones. Bridging loans are short term loans and hence don't become a burden on the borrower. Moreover it can be easily repaid once you are able to sell your property. Bad credit status is no stumbling block in order to avail bridging loans. Bad credit borrowers suffering from arrears, defaults, CCJ, IVA, bankruptcy etc can also avail the benefits of bridging loans.

Always look for well-known lenders while applying for bridging loans because this way you can avoid the loan sharks of the financial market. Also give priority to lenders having good reputation in the market. Make sure you read all the terms and condition of the loan, because sometimes there are hidden conditions that may create problems for you in future. Instead of visiting lenders personally, apply via Internet because it is less time consuming and the transaction is a lot faster. Regular payment of installments will help increase your credit score which can be very beneficial in the long run.

With bridging loans you can easily purchase a property without worrying about the finances.

Bridging Loans
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