Borrowing a bridging loan will be a great option for you, if you are looking for finance to buy a new property, but you have not sold the current one. People frequently get stuck in such situations when they find their perfect property and don't want to loose it due to lack of sufficient funds. Quick bridging loans tends to make it feasible for you to buy the property of your interest even before selling your old property.
Bridging Finance are short term loans. These loans are accessible for those who want to buy a new property but are not able to sell their current property instantly. It assists the borrower to bridge the financial gap and fulfill his/ her requirements until he/ she is able to arrange the essential finance. Consequently by borrowing a bridging loan you will be able to meet the monetary specifications which come up in between promoting your present property and buying a new 1.
You can borrow a bridging loan from a principal lender by providing collateral. You can offer your house or any other property as the collateral while borrowing the loan. The amount authorized as the loan is primarily based on the value of the collateral supplied. These are brief term loans, therefore, the repayment period in short and the rate of interest is greater compared to the other kinds of loans. However, there are lenders with low price of interest. The maximum limit of amount offered as loan by the lender, varies from one lender to an additional. In case you fail to repay the loan inside the fixed time period, the collateral placed by you is repossessed. It is usually advisable to do a proper research on the quantity of loan provided and the rate of interest, before you lastly borrow a loan. You can find a lot of information on bridging loans on the internet itself.
You can avail a bridging loan even if you have a poor credit history. For you the rate of interest can be significantly higher, but you also get a chance to enhance your credit score.
Bridging loans can be borrowed to fulfill different monetary requirements whether it is for personal factors such as holiday, marriage or purchasing a new property for personal requirements or for industrial factors such as purchasing an workplace premises, buying sources etc.
The principal lender provides two kinds of bridging loans - closed bridging loans and open bridging loans. Closed bridging loans are for those borrowers who have already sold their existing property. A closed bridging loan is generally for a set period of time. Open bridging loans on the other hand are for borrowers who want to buy a new property but have not sold their present property.
In brief, a bridging loan is the best answer to bridge your financial gap in times of emergency. It will help you to buy your perfect property even if you are not able to sell your existing property in time. Whether or not the property is for your personal need or commercial specifications, it will help you to cover the financial gap. But while borrowing a bridging loan you require to keep in mind that the repayment period is short and the rate of interest are comparatively higher.