The Main Features Of A Personal Bridging Loan

All of a sudden, 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 strategy, as it is truly a profitable 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 simpler.

A personal bridging loan works as a monetary bridge to cover up the financial gap throughout property transaction. This loan is considered as a secured loan. Therefore, you have to pledge some factor in order to get the loan. Generally, borrowers use their new buying property as safety. In addition to, you can use some other properties like, housing or auction properties, industrial properties, retailing shops, overseas property etc.

Generally, while offering a personal bridging loan, lenders prioritize on the value of the property, not the purchasing cost. This loan enables borrowers to borrow the quantity, ranging from £25,000 to £500,000. If you want to borrow much 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 essentially a brief term loan. The repayment period of this loan varies from couple of weeks to six months and can be extended up to 2 years. If you opt for this loan, you will only have to spend the interest price throughout the loan period. The principal quantity can be paid off after the present property is sold. You will get the unearned interest in case you can sell your property inside the limited term period. And if a personal bridging loan is matured prior to promoting the property, then the loan will be changed into general loan, and be certain for this you need not pay any penalty.

Would like to know even more concerning Open Bridging Loan? Go to http://www.bridgingfinance4u.co.uk/ for even more info.