bridging loan has many of a property.
benefits, some of which are
listed below.
Bridging loans can be arranged
for any sum between "£25000 to a
A bridging loan can be used to few million pounds and can be
cover the financial gap when borrowed for periods from a week
buying one property before the to up to six months
existing one is sold. They are
looked on as short term lending Because of the nature of bridging
to cover a specific short term loans they can usually be
need. arranged at short notice and
within a few days.
A bridging loan as the name
implies is a loan used to A bridging loan is similar to a
"bridge" the financial gap mortgage where the amount
between monies required for your borrowed is secured on your home
new property completion prior to but the advantage of a mortgage
your existing property having is that it attracts a much lower
been sold. interest rate. While bridging
loans are convenient the interest
Bridging loans are short term rates can be very high.
loans arranged when you need to
purchase a house but are unable When considering a bridging loan
to arrange the mortgage for some please remember that you may be
reason, such as there is a delay paying not only for the bridging
in selling your existing loan but also for the mortgage on
property. your existing property.
A bridging loan can also be used Bridging loans are widely
to raise capital pending the sale available and can usually be
arranged by your existing convenient, you need to consider
mortgage provider. the pitfalls too, like the high
interest rates.
Although bridging loans are
About the Author:
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.
Source: www.isnare.com
