It takes longer than expected time to sell your property in order to have enough funds at hand for buying a new property. By the time the old one is sold, chances are that you have lost the new property a property grabber. Obviously you are craving for instant finance. Bridging loans UK is one product that is made especially for such urgencies.
Bridging loans UK is a short term arrangement of much needed finance for the loan seeker. This loan bridges the gap, often a short one, between the time taken for selling old property and buying new property. As soon as the old property is sold the borrower pays off the loan with the help of the amount. One attractive and useful feature of bridging loans UK is fast approval. The loan is in the borrower’s account within 24 hours after applying for it.
Bridging loans are short term
Since one usually is able to sell old property soon, bridging loans UK is a short term loan. Borrowers pay off the loan in few weeks or months. Being of such short duration, lenders charge higher interest rate on bridging loans UK. Higher interest rate is therefore despite the fact that the loan is a secured one.
For taking bridging loans UK, borrowers should provide any of their property as collateral to the lenders. In most of the cases the very property the borrower intends to sell is offered as collateral. The loan amount depends on the equity in collateral. For a greater loan the borrower would like to assess the equity in the loan. Higher equity surely enables in availing greater loan if need be so.
Low cost bridging loans
We give you tips for taking a low cost bridging loan UK and normally quote short term loans from pales.co.uk. Higher interest rate can be countered on two fronts. If the borrowed amount is kept below the equity in collateral the interest rate may be considered for a reduction by the lender. This means you should arrange for some cash for buying the property so that you borrow minimum amount. At the same time while searching for the right lender, compare bridging loan UK offers of different lenders for their interest rates as each one of them has own rate in cut-throat loan market. The comparison allows you to settle for the lowest possible rate of interest. But higher interest rate does not give many pains. The borrowers pay only interest during the repayment period and no monthly instalment are involved. This lowers the burden of interest rate.
Bad credit is not at all a problem while taking bridging loans UK. Since the loan is well secured by the very property you intend to sell or by any other property, there is no big need for making a credit check. The lender can recover loaned amount by selling borrower’s property in case of a payment default.
For reducing the loan availing cast further, better apply online. Online lenders do not take any fee on loan processing and offer vital information free of cost. Lot of money is saved this way. The loan approval also comes fast on applying online.
For buying a new property till the time you sell the old one, bridging loans UK is best suited loan product. Make sure that the loan is paid back in time as higher interest rate of the loan can prove to be too much.
Bridging loans UK is highly useful in taking finance at a crucial time when you need to buy a property and it may take longer time to sell old property. With some conditions fulfilled the loan is available at comparatively lower interest rate and low cost. The article discusses key aspects of the loan.