Short Term Bridging Loan - Filling the Monetary Chasm

By: Richard Pasic

Suddenly found the home of your dream? Can't wait for anything? Well you don't have to. If you're ready to sell your current home to get enough cash to purchase the new one then all your problems seem to be solved. But nowadays it takes some time to sell property. So here comes short term bridging loan as your friend to help you to buy your dream house.
This loan is especially designed for those people who are in between property move. A certain amount of cash is landed to the borrower, enough to buy a property and he is liable to repay the loan as soon as his current property is sold. These loans are short term loans as the very name implies. It means the loan amount is granted for a short time period which is normally 40 - 60 days.

Within this period you have to sell your existing property and repay the loan.
You can borrow bridging loan for short term in secured and unsecured genre. In case of secured one you have to put collateral against the loan which is definitely going to be your home. In turn you may expect the loan at lower interest rate. But in the later case you don't require any type of security to put in. It may force you to pay a bit higher interest rate. But it's all up to you decide which one is suitable for you. Past credit history of the borrower has no effect on the lender's mind. The only harm it can do is increasing the rate a little high. But with this the borrower with bad credit gets an option to amend his or her credit score being regular in monthly installments.
As it is a short term loan, it may charge you with high penalty if you fail to repay the amount in the specified time. So be prepared for regular repayment and take only that much cash which you can pay back. You should go for a thorough research to find out the best lender offering you a good amount of money and that too at a reasonable rate.
Summary
Short term bridging loan is devised to help persons with adequate finances while going for a lucrative property deal and lacking in sufficient finance. All persons including poor creditors are considered while approval. Though rate is a bit high but it should not deter you as anyways you are going to be profited from the deal.

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