Borrowing a bridging loan will be a great option for you, if you are searching for finance to buy a new property, but you have not sold the existing 1. People often get stuck in such circumstances when they find their perfect property and don't want to loose it due to lack of adequate funds. Quick bridging loans makes it feasible for you to buy the property of your interest even before promoting your old property.
Bridging Finance are short term loans. These loans are available for these who want to buy a new property but are not able to sell their present property immediately. It assists the borrower to bridge the financial gap and fulfill his/ her requirements till he/ she is in a position to arrange the necessary finance. Consequently by borrowing a bridging loan you will be in a position to meet the monetary specifications which come up in between promoting your present property and purchasing a new one.
You can borrow a bridging loan from a principal lender by supplying collateral. You can provide your house or any other property as the collateral whilst borrowing the loan. The quantity approved as the loan is primarily based on the worth of the collateral provided. These are short term loans, consequently, the repayment period in short and the rate of interest is higher compared to the other kinds of loans. Nevertheless, there are lenders with low rate of interest. The maximum limit of amount offered as loan by the lender, varies from 1 lender to another. 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 amount of loan provided and the price of interest, before you finally 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 opportunity to enhance your credit score.
Bridging loans can be borrowed to fulfill different financial needs whether it is for personal reasons such as holiday, marriage or buying a new property for personal needs or for commercial factors such as buying an workplace premises, purchasing sources and so on.
The principal lender offers two kinds of bridging loans - closed bridging loans and open bridging loans. Closed bridging loans are for these borrowers who have currently sold their current 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 monetary gap in times of emergency. It will assist you to buy your ideal property even if you are not able to sell your current property in time. Whether the property is for your personal need or industrial specifications, it will assist you to cover the monetary 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 greater.