Archive for July 31st, 2010
Short Term Bridging Loan: a Good Option to Purchase Property
You might be interested in purchasing a property and do not want to let go the chance. But the only thing that concerns you is that of finance, which is not available to you at this moment. You can arrange the funds by selling your existing property but that will definitely take some time. It is here that you can rely upon short term bridging loan. Through this loan, you can access the funds to purchase the property without facing too many hassles.
The loan is meant to bridge the cash gap that arises prior to the purchasing of a new property and selling the existing one. This is why this loan is known as short term bridging loan. With the aid of this loan, you can purchase commercial property, business development sites, and residential property.
This loan is partly secured in nature, as you have the existing property or the property you intend to buy as collateral. As per your need and requirement, you are free to borrow any amount in the range of £100,000-£400,000. This amount has to be repaid over a period of 1 year – 10 months. You can easily pay back the amount by selling your existing property within the stipulated time period.
Irrespective of credit status, this loan is also made available to applicants with a history of adverse credit due to CCJs, IVA, arrears, defaults. This is because the loan amount is insured against an asset. However, the interest rates charged are marginally high , as the repayment term is short.
You must know that the loan is a interest only loan, which means that you are required to pay only the interest during the repayment tenure. So, it would be optimal for you to look for a loan that carries a relatively low interest rate. This way, you will be able to save a lot of money on interest rates. This loan is especially beneficial for bad credit borrowers, as by making timely repayment, they have a chance to improve the credit score.
Before availing short term bridging loan, you can undertake a proper research of the loan market. You can also use the online mode to compare and contrast the rate quotes. This way, you can get a better idea on how to get access the best deal.
Eva Baldwyn
http://www.articlesbase.com/loans-articles/short-term-bridging-loan-a-good-option-to-purchase-property-713308.html
