There is a strange fixation when it comes to purchasing properties. Even though the price of real estate has skyrocketed and doubled up in the recent times, the craze for property is always there. However, for a person with a limited income, it might not be that easy to arrange the funds. Moreover, if you are on the verge of inking a deal and do not want to loose the opportunity to grab a property, the best you can do is to opt for bridging loans.
These loan cover the cash gap that occurs prior to the purchasing of a new property and selling the existing one. These loans are secured in nature and can be acquired only by pledging collateral, which can be your existing property.
Through the loans, you are free to derive any amount in the range of 100,000-400,000. al though the loan is secured against an asset, the repayment tenure too is short and falls in between a few months -1year.it is in this period that you are required to sell your current property to repay the loan., the interest rate charged is marginally high, as the loans are made available for a short term period. However, these are interest only loans, where in you have to pay only the interest rates and not the principle amount. So, availing a low interest loan will be a definite advantage for you, as it will help you to save a considerable amount of money.
These loans are also made available to applicants with a history of bad credit such as CCJs, IVA, arrears; defaults etc. the interest rate charged on the loans will be high, considering the credit profile of the applicants. Besides, on ensuring timely repayment of the loan installments, these applicants have a chance to improve the credit score.
The best way to derive bridging loans is possible by using the online mechanism.. By applying online, you will be able to access lenders, who are willing to offer monetary assistance at competitive rates. Further by taking a little research of the market, you will be able to select a loan deal that suits your requirement.
With bridging loans, you can derive funds, which then will enable you to clinch a property deal in a hassle free manner. The loans are secured in nature and are open to bad credit borrowers as well.