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Homeowner Bridging Loan – Own Property at Low Cost Finance
By Peter Taylor
There is this property that you must buy immediately or others will grab it or its price may escalate. You however lack in adequate funds for buying the property while selling the old property may take time as you are searching for the right buyer. This is where homeowner bridging loan comes to your rescue.
Home owner bridging loan are offered for the purpose of buying a new property. The loan is paid back from the amount the borrower gets on selling the old property. Thus the loan bridges the gap of buying new property and selling old one. Homeowner bridging loan is essentially a secured loan. The loan is given to homeowner. Lenders take the home as collateral for offering the required amount for buying new property.
Because homeowner bridging loan is secured one, it should have come at lower interest rate but on the contrary the loan has higher interest rate. This is because the loan is a short term loan. Lenders would like to earn more interest in a short duration. It takes only few weeks to a year usually to sell a property and to pay off the loan. How much one can borrow, depends on equity in the home placed as collateral. Higher equity in home enables in taking greater loan for buying high priced property.
Higher interest rate of homeowner bridging loan can be taken care of by taking advantage of the competition in the loan market. Individual interest rates of different lenders are on display on websites. Compare the rates and you can settle for a comparatively lower interest rate.
Do not hesitate in applying for homeowner bridging loan if you are labeled as bad credit. Lenders usually will not go for an extensive check of your bad credit. You have secured the loan through your home for the lender. This means if you default on the loan pay back, the lender still has no risk as he can recover the loan back on selling your home. So, bad credit is not at all a major concern in taking the loan. But take along with you a sound repayment plan for more assurance to the lender. Also take check your credit report for errors and falls representation of facts before approaching lenders.
After you have compared different lenders, apply online preferably to the suitable lender. Online lenders approve the loan fast for timely buying of the property and take no fee on processing the loan application.
Homeowner bridging loan is best suited for taking secured loan of greater amount. Make sure to pay off the loan installments in time to avoid higher interest rate. It will also improve your credit score.
About the Author
Peter Taylor is a senior financial analyst at 24hr Bridging Loan with an acumen for finance and insurance. In recent years he has taken up to provide independant financial advice through his informative articles. To find 24hr bridging loan, Home owner bridging loan, Best bridging loan visit http://www.24hrbridgingloan.co.uk
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