Buying a property often requires instant financial support. Surely you may sell some old property for gathering funds, but selling at throw away price is not a wise step. It would however be wiser to opt for short term bridging loan. A short term bridging loan is provided for a short period till the borrower sells old property in a profitable deal. Usually it is only for a few months or up to a year that a short term bridging loan is returned back as this is enough time to sell old property or arrange money through other sources for paying off the loan.
The loan amount approved under short term bridging loan depends on equity in collateral that has to be provided to lender for the loan. Repaying capability and sound financial position and good credit history also plays key role in approval of greater amount. The very property that you intend to buy or sell or any valuable asset can function as collateral for the loan. But despite being a secured loan, short term bridging loan is offered at higher interest rate. This is mainly due to short term nature of the loan. Make sure that the loan amount is paid in time or the lender will repossess the property.
One advantage of short term bridging loan is that it is less burdensome on the borrower. This is because the borrower pays interest only. This means till the old property is sold the borrower can pay off installments easily. The principal amount is paid back at a time whenever the borrower has enough funds at hands. So from every aspect short term bridging loan is beneficial for the borrower.
Before making a deal with a particular lender, it would be wise to compare various short term bridging loan lenders and see who has comparatively lower interest rate on offer for you. Apply online to suitable lender so that the loan is in your account instantly for a timely purchase of the property.
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 , development bridging loan, bridging loan advice in UK visit http://www.easybridgingloansuk.co.uk