| |
Bridging Loans—Finance New Projects Instantly
By Natasha Anderson
You saw an eye catching home and want to buy it immediately for the fear of loosing it to other buyer. But you are short of cash and finding hard to get the money from friends or relatives. You can't raise the money by selling old home as its buyer will take time. Well, buy that home on taking bridging loans. Finance for acquiring any property like home, office, commercial or semi commercial one is available through bridging loans. One can pay back bridging loans after selling the old property.
Bridging loans are essentially secured loans as the lenders provide the loan against the old property that the borrower would be selling in a few days. The property to be sold works as a collateral and gives security to the lender that his loaned money is safe.
Borrowers can avail £25000 to some millions pounds of bridging loans. For high amount, the loan providers evaluate the equity in the property. Higher equity ensures greater loan to the borrowers. The lenders generally offer an amount that is 65% of the equity.
As normally it takes only few weeks to sell the old property, bridging loans are taken for a very short period of few days to weeks and for a maximum of one year.
One big advantage of opting for bridging loan is that borrower pays only the interest till he sells the old property. After the loan pay off duration has ended and the borrower is able to sell the property, he returns the principal amount to the lender.
The lenders charge a very high rate of interest on bridging loans. This is because lenders want to earn as much interest as possible in a short period. The high interest rate, however, does not pinch the borrower much as his priority is to get the loan instantly. Moreover, the loan can be paid off in a very short period and hence interest outgo is seldom too much for the borrower.
Because of the high interest rate involved, the borrowers pay off bridging loans as quickly as possible. In case they fail to clear the loan in time then interest rate may become a burden.
Lenders do not bother about bad credit history of borrowers while offering bridging loans but the adverse report may be a hurdle in availing loan of larger amount.
Bridging loans are very popular with borrowers as they can quickly get the required money at the time they need to buy new property. Thus the borrower is saved from a long wait for the money. Because the loan is availed for a short period, the borrowers never feel the burden of the debt in most of the case.
About the Author
After having herself gone through the ordeal of loan borrowing, Natasha Anderson understands the need for good quality loan advice. Her articles endeavor to provide you the wise counsel in the most elementary way for the benefit of the readers. She works for the UK secured loan web site UK finance world. To find a Secured or unsecured loan that best suits your needs visit http://www.ukfinanceworld.co.uk
Article Source: http://www.simplysearch4it.com/article/26557.html
| If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/26557.html" as shown above and make it hyperlinked. |
| Some other articles by Natasha Anderson | Unsecured Debt Consolidation Loans-Pay Off All Previous Debts
If you are a tenant, non homeowner or even homeowner and you are suffering from lot of debts, then you can move for ...
Fulfill Your Wishes With Low Rate Unsecured Loan
When an individual search for loan, he particularly wants a loan which carries low interest rate and favorable terms. But, is there any source which comprises of both the ...
Secured Online Loan…Why?
You have decided to meet your present financial needs with a secured loan. You have started looking for a better deal, but suddenly you have come to know about online loan option. You may think that ...
All About Credit Card Debt Consolidation
Are you looking for some solution, which will ensure of your credit card debt with a simple repayment plan? Then, credit card debt consolidation can prove to ...
Comparison Is The Key To Cheap Unsecured Loan
Cheap unsecured loan is regarded as the best and convenient way to procure finance from the financial market. The reasons as to why it is regarded as best and ...
An Ultimate Solution for All Your Needs-Unsecured Loan
As there is an increased demand of financial services, an amplified growth can also be witnessed in the number of lenders, offering loan amount on various terms and conditions. But, the question arises, how and ...
|
|
| |
|
|
|
