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Many people sell their existing property to finance the purchase of a new one. But sometimes, things do not turn out the way you expect them. Suppose you have put up your existing home/ property on sale and either no prospective buyer has approached you or the sale process is still on. Meanwhile, your property of choice is one that is much sought-after and if you don’t clinch the deal soon, someone else is going to beat you to it. You could be left stranded in the middle of nowhere. To avoid such an unpleasant situation, you could consider a personal bridging loan.
Personal bridging loans are short term secured loans that fund the purchase of property/ home. They are granted when you pledge property as collateral. Usually, people pledge the newly bought property for this purpose. These are loans that are approved and granted fast so that you can make your purchase on time.
Personal bridging loans are available under two options- closed bridging loans and open bridging loans. When you have already signed on the sale deal of your existing property with a buyer, you can take a closed bridging loan. On the other hand, open bridging loans are for those who have not found a buyer as yet or haven’t completed the sale process. Interest rate on this option is higher than that on the closed type. Personal bridging loans are lent on the basis of the value of your collateral. Most lenders allow up to 75% of the equity of the property. Speaking generally, it is possible to borrow an amount up to £10 million. As these loans are short term loans, repayment tenure lasts up to a period of 12 months only. During this term, only the interest payments are made on a monthly basis. The sale of your existing property has to be made within this period so that you can pay back the principal amount by its end.
Personal bridging loans make it possible to buy your preferred property or house on time. But they can be costly owing to their high interest rate. So, search for more affordable deals by comparing loan quotes through the online sites.
Summary
Personal bridging loans are secured loans taken when people need financial assistance to buy a new house or property. They are available under two options- closed bridging loans and open bridging loans. These loans generally carry high rate of interest.
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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