When you have decided to buy a new property, you have to put a certain amount of money for down payment. Most of the times, when people apply for a mortgage loan it will take around 90 days. Within the same timeframe, you would definitely want to move in the new property, but you also have to sell your old property. How will you pay the down payment? If this is the scenario with you, you should apply for bridging loans as it is a way to get the finance you need fast.
How Can You Benefit From Bridging Loan?
Gone are the days when it was the landlords or developers who used to choose short term bridging loans, as they have now become quite popular among modern home buyers. The reason is because they can be easily obtained and you get the cash quickly. Within just a few minutes, the loan will be credited to your account.
A bridging loan is one of the quickest ways of buying a new home. This is because you can also make the down payment at the same time. The good thing is that you won’t have to lose an attractive property because you don’t have the money required to make the payment.
A bridging loan is always a short duration loan and therefore repayment should be completed as soon as possible. It is very different from the other home mortgage loans which usually take around 15 to 20 years. The duration of the loan on average is minimum two months and the maximum it can reach is three years.
If you have decided to sell your existing home within the next six months, you should always have a word with the lender so that you can easily make the repayments for the bridging loan. You will also get the option to pay the entire loan amount along with the interest rate after six months.
What one should remember is that this is a kind of loan with a higher interest rate and so you should try to pay the loan as soon as possible. As you will get the time to make the payment, till you sell your existing property, you simply won’t have to hurry up for the sale. You can wait for the right buyer who will offer you near asking price. Visit https://www.bridgingloans.co.uk to speak to a professional that will give you the best advice suited to your situation.
When it comes to short term bridging loans, this is mainly popular among all the market savvy buyers who want to close a deal on a property that is a bargain. They have the option to buy the dream property, no matter the amount of money required to invest on it.
If you don’t have this loan, you won’t be able to buy the property on time. These days, a lot of lenders also suggest you to go for the loan because it makes things easy. So if you are someone who have decided to buy a new property and have an existing property, then the same can be used to finish the payments of the new loan. Do check the bridging loan rates before you decide to opt for it.