Bridge in the Financial Gap with Bridging Loans
By Peter Taylor
Located dream property for building your home and short of cash? The bridging loans are the best solution in such a situation. Bridging loans help in bridging the financial gap between the purchase of a new home and the sale of the borrower's current home.
Bridging loans are the short term loans that handle the emergency financial need of an individual while going to buy new house. If the borrower intends to buy a new home and is in lack of finance then the borrower would first have to sell the old one.
The loan amount generally offered in bridging loans depends upon the borrower's repayment ability, credit history, lenders policies and the market policies. However the loan amount ranges from £1, 00,000 to £4, 00,000. The usual time period for which bridging loans is approved is up to 6 months. Since the individual needs this loan in emergency thus the repayment terms are usually kept short and flexible.
Bridging loans are of two types open and closed bridging loans. In an open bridging loan the final terms and conditions of sale have not been agreed however the terms for purchasing the property has been finalized. An open bridging loan is taken out by buyers who have found their ideal property, but have not put their existing home for sale. But in closed bridging loans all terms and conditions of both sale and purchase on both the properties have been agreed. A closed bridging loan is only available to homebuyers who have already exchanged on the sale of their existing home.
Borrowers with bad credit history also do not face any difficulty in getting bridging loans. The online availability of bridging loans has made its access even quicker and easier. The borrower should research properly online before finalizing upon any deal.
If you have assets like vehicle, property etc at hand and need instant cash for your property deal than bridging loans are the best suited choice for you.
About the Author
Peter Taylor is a senior financial analyst at 24hrbridgingloan 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 24 hr bridging loan uk,bridging loans, best bridging loan uk, bridging commercial loan uk, bridging flexible loan uk that best suits your need visit http://www.24hrbridgingloan.co.uk
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