Time is of essence, lost time is never found again. Are you caught in a situation when you have found the dream home you always wanted to buy? But, the trouble is that you cannot find a buyer for your old home and you don't even have enough savings with you to finance the purchase of new home. Would you let anyone else take over your dream home; I hope you don't want this to happen. A fast bridging loan will be a perfect solution to your problems. Bridging loans are short term loans used to cover up a financial gap in a commercial real estate transaction. In simple words, they provide money to an individual to buy a new home before the existing one is sold. Bridging loans work as a solution to temporary financial crisis which one may face while buying a residential property. Bridging loans are also known by other names such as interim financing or gap financing. The use of a bridging loan is not confined to residential property. Bridging loans are also provided for commercial property purchase, land purchase, renovation, commercial development and in many other real estate transactions. And they can also be used in case of auctions where you have got the cash to finance the deal. A borrower is required to keep collateral against the loan. Business equipment, inventory, commercial or residential properties owned by the borrower can be put as a security with the lender. Properties involved in the purchasing process can even be used as collateral against the loan. Lenders allow bridging loan up to 80% of the value of the property put as collateral. The amount one can borrow with a bridging loan ranges from ?25,000 to ?500,000. Bridging loan is a short term loan thus it has a short loan term. The loan term can vary from 2 weeks to 2 years depending on the amount of loan you want to borrow and value of the house that is kept as a security against the loan. Bridging loans are offered at a higher rate of interest as the loan is for short term and the lender tends to cover his cost by charging a higher rate of interest. Speed is of essence and makes all the difference. If you need urgent cash to buy a home and you cannot get a loan at that time, then there is no use of that loan. Thus, the most important aspect of a loan is its timing. A loan is of use to a borrower if it satisfies his or her immediate cash needs. But, this problem does not exist with a bridging loan. The most significant feature of a bridging loan is its speed. A bridging loan is a fast loan which is designed specifically for UK residents to satisfy their urgent cash needs for purchasing a new house till the existing one is sold. A fast bridging loan is an easy and quick solution to a short term financial gap. Entry of online lenders has added a new vision in the finance market. Keeping the borrowers away from all the hurdles they used to face while borrowing from traditional lenders such as banks and financial institutions. Online lenders offer instant bridging loans within a very short period. Online process has made the loan application process easier and faster. A borrower can apply for an online loan by filling up the small application form online which are available at most of the online websites. Lenders will get back to you within 24 hours with their in principle decision. Majority of the lenders do not charge any brokerage fees. A little effort from your side can help you save good sum of money. You are just required to collect loan quotes from various lenders and then compare them to find the loan option which matches with your individual financial status. You may also seek for expert's advice to make the final decision. Good credit history will always be beneficial; it will help you get the loan easily. Because lenders can trust you easily as you have not made any defaults in the past and expect the same for you. But, people with bad credit rating need not panic. You too can get this loan but for a comparative higher rate of interest. Getting financed for a new home before selling the existing one is a dream come true. Bridging loan helps the borrower to access fast money to fill in the temporary financial gap. Explore all the avenues and choose the deal that satisfies your requirements to the best.
Askmeformoney. Com Find out how bridging loans work through the help of the top mortgage professional in Noosa, Ian Robinson.
