A need can crop up anytime. For instance, you want to purchase a new house, but you do not have sufficient amount of money. You cannot get the required amount by selling your old home as its buyer will take time. Bridging loans UK can make finance available for the purchase of a new property.
Bridging loans UK are specifically designed for the UK residents to cover the financial gaps. As the name suggests they are use to bridge the gap between buying and selling of a property. They enable you to purchase a new property prior to selling the older one.
Bridging loans UK provide an array of benefits-:
Cover the financial gap
Speedy loan approval
Readily available
Affordable rate of interest
Bridging loans in the UK are usually secured against the old property that the borrower would be selling in a few days. This property serves as collateral and ensures the lender that his loaned money is safe.
Due to the secured nature of bridging loans UK, the borrower must be aware of the open ended and close ended bridging. A close ended bridging is the one where the repayment source is available but the funds to meet the immediate requirement are not there. For example, the borrower has sold his old property but has yet not received the payment. In an open ended bridging, the repayment source is known but it is not certain. As the borrower is ready to sell his house, but there are no prospects of the house being sold.
The borrower of bridging loans UK can draw money up to £25000. For higher amounts the lender evaluates the equity stored in the property. The higher the value of the property, the larger will be the loan amount.
As bridging loans UK are short term loans, therefore they carry a high rate of interest.
The borrower of bridging loans UK has to pay the interest rate only till the time he does not sell the old property. Once the property is sold he can return the principal amount to the loan provider.
Bridging loans in the UK can be used to purchase residential or commercial property, land property, conversions or even overseas property.
People in the UK who have an adverse credit history can also avail bridging loans. There are lenders who are ready to offer you loans at reasonable rates.
Online lenders have made it easier for a common man to apply for bridging loans in the UK. All you need to do is just submit your details via a hassle free online loan application form. The lender will serve you with the finest loan deal within a few days.
Bridging loans UK are a quick solution to all your financial requirements. Opt for the loan and get instant finance.