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Many a time, people try to buy a new property by selling the present one. But simultaneously accomplishing both things may not be possible for everyone. In such cases, one can take help of a personal bridging loan.
A personal bridging loan mainly bridges up the monetary void during property transaction. This loan is secured loan. It means borrowers need to pledge something against the lending amount. Usually, borrowers use their new purchasing property as a security. It could be auction property, commercial properties, retailing shops, overseas property and so on.
While offering the loan, lenders usually check the worth of property, not the purchasing price. This loan enables borrowers to avail the amount ranging from £25,000- £500,000. Usually, it is noticed that with this loan, borrowers can borrow 75% of the value of their property.
A personal bridging loan is provided for a short period of time. The repayment period of this loan varies from a few weeks to six months.But one can expand this period up to 2 year. During this period, borrowers need to pay the interest rate only. They can pay off the principal amount after selling the property. At the same time, it is necessary to mention that, if borrowers are able to sell the property within the stipulated time, then they will get all unearned interest rate. On the other hand, incase the loan matures before the property is sold, then the loan will be transferred to a general loan. And in such cases, borrowers needn’t pay any fee.
By availing a personal bridging loan, a borrower can get many advantages. These are as follows:
Fast availability is an added advantage of this loan. If your all documents are ready, then borrowers can avail this loan within 24 hours.
All sorts of borrowers including those have a bad credit score can also apply for the loan.
In addition, no penalty is charged with a personal bridging loan.
Summary
A personal bridging loan is a sort of secured loan. This loan is taken during property transaction. In this article, we have discussed about the basic feature of this loan.
Eva Baldwyan aims to inform about the several issues involved in personal loans and mortgages through her articles.She very experienced in the field of finance. To find bridging loan, commercial bridging loan, residential bridging loan, personal bridging loan visit http://www.easybridgingloansuk.co.uk
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