Bridging Loans: Smooth Financing for Your Dream Property

By: Peter Taylor
To lead a life full of luxuries and comforts, one has to pay a certain price which can be a bit expensive at times. However, there are certain ways through which you can cover the shortfall. In exactly the same fashion, if you are looking to procure a new property and have finalized the deal, but do not have the requisite finances, then consider applying for . These loans provide you the requisite finances that enable you to clinch the deal in a convenient and affordable manner.

As the name suggests, these loans are designed specifically to cover the cash gap which occurs while purchasing a new property and selling off the existing one. These are basically secured loans wherein you to pledge the existing property or property you are going to procure as collateral. The amount borrowed through these loans can be used to purchase residential property, commercial property, business developments sites etc.

The loan amount under these loans is approved by assessing the equity value present in the collateral. In general, it offers up to 80% of the total amount under these loans, which is usually in the range of ?100,000-?400,000. Further, the amount advanced depends on your prevailing circumstances and repaying capability. The lenders may also verify your current financial position, employment status, income proof, credit standing etc.

These loans have a small repayment tenure that spans for a period of few months-1years. Within this stipulated time period, you are required to repay the borrowed amount, by selling off your existing property. Because of its short term availability, these loans carry a marginally high rate of interest, although it is secured against an asset. Note that, these are principle only loans and you have to pay only the interest rate during the tenure. So before applying for the loans, you must take a proper research of the market.

Bridging loans are also available online. Online application makes it possible for you to look for a better deal you will be able to save a lot of time since the entire processing takes place through online mode. Besides, on comparison of the various rate quotes you can easily select a deal that suits your repaying capability. With these loans, you have the right finances, so that you can purchase property of your desires.

Bridging Loans
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