If you are in the look out for funds to buy a new property before selling the existing one, then Bridging loans UK is a good option. If you have find a property which serves your purpose and do not want to loose it, you require funds. Bridging Loans UK just makes it possible for you the necessary amount to buy the property at better rate of interest. Bridging loans UK are short term loans. These loans are meant for those borrowers, who are in the look out to buy a new property, without selling their existing one. The loan assists the borrower to raise the meet the personal requirements until he can arrange the necessary funds. So, by opting for Bridging loans UK, you are able to cover the financial needs which can arise between buying a new property and selling the existing one. Bridging loans UK can be availed by placing collateral. The collateral you place can be your home or any other valuable asset. Depending on the value of the collateral, the loan amount is approved. However, you should remember that the rate of interest for Bridging Loans UK is comparatively higher. The period of repayment for bridging loans UK is 12 months. The amount you avail through the loan ranges from?100,000 to ?400,000. If you are not repaying the amount in the stipulated time period, the collateral you placed is repossessed. . This is because the loan is short term based. But if you do a bit of research online, you might be able to find a lender with a low rate of interest. The online way is the best method to compare the different quotes of the lenders. If you are a bad credit debtor, you too can avail bridging loans UK. The rate of interest is considerably higher, but you have a chance to increase your credit score. Bridging loans can also be used for other purposes such as marriage, vacation, land purchase etc. Bridging loans UK are of two types. They are open bridging loans and closed bridging loans. An open bridging loan is meant for borrowers who have selected a property but have not yet agreed to sale their existing property. A closed bridging loan is generally for a set period of time. The loan is available to home buyers who have already exchanged on the sale of their existing property. Prior to selling your existing property and buying a new one, the sudden need of finances can be met by availing bridging loans UK. With short term payments and easy flexibility, the loan is available to curb your financial needs and you can buy your dream home.
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