Moving house can be a stressful process. After weeks or months of searching you have found your dream home and want ot move in as soon as possible. Unfortunately, funding can easily grind everything to a halt. Often you need to sell your current house to have enough money to move on to your new residence. What if the buyer is going to take some time to send all the money you need?
A short term bridging loan can end your financial woes. This kind of loan can be utilized when you have an urgent need for money. They are secured against a property (residential or commercial) and act as a quick fix to any short term cash flow issues you may be facing.
The Facts Behind Bridging Loans
The main feature of a bridging loan is its short duration. This could be as little as a few weeks or up to 2 years maximum. In this time the borrower can use the loan amount to purchase their new property. The loan provider is then repaid when the previous property is sold. With this kind of loan, any repayment installments are for the interest only. The main principal amount would be paid backed when the old property is sold.
A short loan period does come at a cost. In comparison to other types of loans, you will end up paying more interest. This usually isn’t a problem for most borrowers. Since the money is needed urgently, the higher rates are acceptable and expected. The best thing you can do is to negotiate with the lender, to get a interest rate you are comfortable with.
Since the loan is secured you can borrow a large amount of money. These short term loans often range from 25,000 pounds to 1 million pounds or more. You will need to get your collateral valued, to know the exact borrowing limit for your circumstance.
Most loans will severely restrict or outright decline anyone with a bad credit rating. One of the great strengths behind bridging loans is that it is open to everyone. Whether you have a Good or bad credit history, you are able to apply and get the money you urgently need.
As with any other kind of lending, make sure you understand the risks on your part. Get some professional advice to make sure you are aware of all the legal issues and on the right track.
Financemyhouse will supply your bridging loan
The process of applying for your loan is easier than ever before. Dedicated and specialized online providers can give you a fast track service. Private companies have sites like financemyhouse.net, which give you a simple online form to fill in and get started. Since you really do need the money in your account as quickly as possible, you will get a reply with the decision, a mere 30 minutes after sending off your form.
Avoid the frustrations of moving homes, by getting your finances in order. When there is a short term need for some money, bridging loans can be a life saver.