Short Term Bridging Loans Uk Buy Property In Hard Times

Short Term Bridging Loans UK—buy property in​ hard times
You have set your eyes on​ a​ dream house that is​ to​ be bought immediately otherwise anytime others may grab it .​
But you​ don’t have sufficient finance at​ hand .​
To generate funds you​ want to​ sell your old house but its buyer will take two months to​ buy it .​
What to​ do? Short term bridging loans UK pulls you​ out of​ the​ tight money situations like this one by making available the​ much-required money the​ other day.
Short term bridging loans UK,​ as​ is​ clear,​ is​ a​ loan taken for duration of​ a​ week to​ six weeks and a​ maximum of​ two years .​
In these few weeks or​ days,​ the​ borrower after availing the​ loan buys the​ new house or​ any other property from the​ borrowed money .​
He then pays back the​ loan to​ the​ lender when he is​ able to​ sell the​ old property.
The amount you​ can borrow under short term bridging loans UK generally ranges from £25000 to​ £500000.One can borrow a​ higher amount provided the​ collateral placed with the​ lender is​ of​ high value .​
Under short term bridging loans UK,​ lenders provide the​ borrower an​ amount that is​ 65 percent of​ the​ value of​ the​ property put as​ collateral .​
The lender when deciding over the​ loan amount does not consider purchase price of​ the​ property .​
Any property like your home,​ office or​ business is​ worth putting as​ collateral with the​ lender when asking him for the​ bridging loan.
One significant feature of​ the​ short term bridging loans UK is​ that it​ does not require the​ borrower to​ pay any installments .​
Instead,​ the​ borrower pays the​ interest only during the​ term of​ the​ loan .​
He then returns the​ principal borrowed amount when he sells the​ old property in​ the​ said duration.
However,​ because it​ is​ loaned for a​ very short period,​ the​ short term bridging loans come with a​ slight disadvantage of​ a​ high interest rate .​
The intention of​ the​ lender in​ short term bridging loans remains to​ earn as​ much money as​ possible through the​ interest .​
The borrower on​ his part can make attempts to​ reduce the​ interest rate by comparing interest rates of​ various lenders online .​
But considering that the​ borrower needs the​ money urgently,​ he seldom sees a​ high interest rate on​ short term bridging loans as​ a​ huge burden.
As it​ is​ designed to​ be an​ instant access to​ the​ borrowers,​ the​ lenders normally approve short term bridging loans UK within five days of​ the​ application .​
Bad credit score of​ the​ borrower will not count much in​ case of​ this loan,​ as​ the​ lender has secured his money by taking his property as​ collateral .​
Short term bridging loans UK is​ thus the​ best available finance to​ a​ new property buyer when he faces a​ tight money situation .​
But one should make efforts to​ shop around for a​ lower interest,​ which generally remains very high.

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