Cutting Down the Gap – Bridging Loans
By Eva Baldwyn
At times, when immediate but big financial requirement arises, you think of selling your ideal property to meet those requirements. As we know that selling property is some what a time consuming job. As the need is immediate, you can't wait for such long to get the sale proceeding and serve your needs. Bridging loans at such times is the support you may be looking for.
Bridging loans are short-term loans to meet the temporary short fall of money. To give an example, we can say that it's like loan for buying a second property before selling the first. You may be thinking that a bridging loan is only for buying property, but a bridging loan can solve any of your personal and urgent purpose. The reason why bridging loans are more related to buying of property is that these loans carry a higher interest rate and its better to use the loan amount for a purpose that serves you longer and better. Other than this you can use the loan amount for:
• Holidaying and traveling
• Meeting wedding and educational expenses
• Expenses on illness of family member
• Buying car or boat
• Overseas property
Bridging loans are basically secured loans. The security here is the property being sold. You can borrow up to 70 to 75% of the value of the security offered. A bridging loan caters your needs in two forms: open and closed bridging loan
• An Open Bridging loan that helps you to buy a property before completing on your sale.
• A Closed Bridging loan that helps if you've exchanged contracts on both properties, but there's a delay in moving.
Commercial & semi-commercial properties, residential properties, retail shops, auction properties & development sites, land with planning permission, buy to let properties etc can be used as a collateral or security for a bridging loan.
Self employed and people with poor credit score can also get the approval for the bridging loans. In figures, you can apply amount between ₤25000 to 3 million. In certain cases this limit extends.
To apply for a bridging loan, you can fill a simple online application form. The lender here will look for your personal details, loan amount required and collateral details. After the first application it takes 4-5 working days to get the approval for the loan. There are certain things which you need to take care of before signing the agreement. Make sure to ask the lender for: application fee, hidden charges and go through the terms and conditions for the bridging loan with due care. This can help you in avoiding disagreements with the lender at the time of making repayments and serve you better.
About the Author
Eva Baldwyn aims to inform common men and women of the several issues involved in personal loans and mortgages through her articles. An MSc in Economics & Finance from the Warwick Business School is proof enough of the knowledge that she possesses in the field of finance. To find Bridging loan, Commercial bridging loan, Residential bridging loan, Personal bridging loan, Short term bridging loan visit http://www.easybridgingloansuk.co.uk
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