Buying a home? Don’t have the ready cash? Need short term monetary support till you arrange for the money? Go for a residential bridging loan.
A residential bridging loan is one which serves you with the finances when you are planning to sell your existing property for the purpose of buying a new home. It takes time to get the sale proceeds for any property; it is very much possible that till that time the home you chose to buy may be sold to some one else with ready cash. This may result in loss of a great deal. Residential bridging loan covers up for this gap while providing you cash for the time you get the sale proceedings. These loans are secured by the property being sold.
If you have sold your property and waiting for the proceeding, you can go for an open ended residential bridging loan. However, a closed residential bridging loan is for those who haven’t put their property for sale. You can borrow amounts ranging between ₤27000 to £100000 under residential bridging loans. Lenders are ready to increase this limit if the situation demands it.
Residential bridging loans are short term loans and carry a higher rate of interest, but it has a feature to cover up for this and that is ‘interest only payments’. Yes, these loans are interest only loans this means that you have to make the payments for only the interest rates till you get the proceeding of the property being sold. The principle amount is to be paid out of the sale proceeding. So this makes a residential bridging loan easy to afford.
Residential bridging loans can also help you in home improvements, which also needs good amount of investments. You can use the money for renovation, adding up rooms, buying furniture for the home, new swimming pool, repairs and sever work, plumbing, any residential purpose etc. So this is an all in one sort of loan for all your residential financial requirements.
To find a good deal in residential bridging loan you can take the help of internet. It can help you to avoid the troublesome job of traveling in the loans market to find the lenders and get the quotes. Free online quotes are available with online comparison tools which can easily help you get the best out of the rest. Then you can fill the application form for the loan quote selected with the required details. The lender once satisfied will contact you with his services.
It takes a maximum of 4 to 5 days to get the approval for the loan, after which you can have the residential bridging loan money ready for getting you your dream home.