The Main Features Of A Personal Bridging Loan
By Eva Baldwyn
Suddenly, you have got an offer of buying a new property. You are planning that you will sell your present property and buy that property. But it will take time. Then what else? You do not want to drop your plan, as it is really a lucrative offer for you. So, how would you get cash? Simply apply for a personal bridging loan. With this loan, you can make your property transaction easier.
A personal bridging loan works as a monetary bridge to cover up the financial gap during property transaction. This loan is considered as a secured loan. Therefore, you have to pledge some thing in order to get the loan. Usually, borrowers use their new purchasing property as security. Besides, you can use some other properties like, housing or auction properties, commercial properties, retailing shops, overseas property etc.
Generally, while offering a personal bridging loan, lenders prioritize on the value of the property, not the purchasing price. This loan allows borrowers to borrow the amount, ranging from 25,000 to 500,000. If you want to borrow more, then the equity of your property will be checked. However, as a personal bridging loan, you can get 75% of your property value.
Personal bridging loans are of two types: open bridging loans and closed bridging loans. This loan is basically a short term loan. The repayment period of this loan varies from few weeks to six months and can be extended up to 2 years. If you opt for this loan, you will only have to pay the interest rate during the loan period. The principal amount can be paid off after the present property is sold. You will get the unearned interest in case you can sell your property within the limited term period. And if a personal bridging loan is matured before selling the property, then the loan will be changed into general loan, and be sure for this you need not pay any penalty.
A personal bridging loan is approved fast. Within 24-48 hours you will get the amount.
Eva Baldwyn aims to inform common men and women of the several issues involved in personal loans and mortgages through her articles. An MSc in Economics & Finance from the Warwick Business School is proof enough of the knowledge that she possesses in the field of finance. To low rate Want To Know About Bridging Loan? Read the Article
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