Purchase Dream Home Without Hassle

By: amenda dorothy

Have you found your dream location for building a home? Are you facing a cash crunch to make your aspirations come true? Loans are the best solution in such a transitory period. There are loan plans in the UK financial market that can bridge the financial gaps between the purchase of a new home and the sale of the borrower's current home. The money you need to complete your residential property purchase can be financed with borrower-friendly loan options.

These loans are the short term loans and handle the urgent financial need of an individual going to buy new house. These loans are also equally beneficial when the borrower finds that the sale value of his old building falls short of the value of the new residential property.

The loan amount generally offered in bridging loans depends upon factors like borrower's repayment ability, credit history, lenders' policies and the market policies. When these circumstances are favourable, the borrower can have a good loan amount. The usual repayment period for these loans is 6 months. Risk involved on lender's side increases the rate of interest and makes the repayment period short. As the individual needs this loan in emergency, the repayment period is usually kept short.

Bridging loans are of two types, open end and closed end loan plans. In an open loan plan, loan amount is offered to the borrower in a situation when he is searching for new property. This loan plan is also taken out by buyers who have found their ideal property, but have not put their existing home for sale. However, the situation is different when the loan plan is closed. It is only available to home buyers who have already exchanged on the sale of their existing home. These loans are also available for the real estate developers who are going for large scale construction work.

Borrowers with bad credit history do not face difficulty in getting bridging loans. However, the loan options are open to them with a hike in the interest rate. The online availability has made its access even quicker and easier. The borrower should research properly online before finalising upon any deal. The demand for these loans has augmented the fierce competition and now-a-days many lenders are providing this loan. As this loan concept is new, the terms and conditions should be thoroughly researched. Comparison before application lands you in the safer zone and makes your loan deal cheap.

Home Loans
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