House Bridging Finance at Low Interest Rates

If you are going to buy a new house and you are still in the process of selling your old house then you can apply for the house bridging finance.

Bridge finance is a short term finance that is available at low interest rates. You can use these finances for any purpose. The bridging loans are secured loans that mean you have to place collateral to get the loan from the bank.

About bridging finance:

1. These are short term loans for a period of about a month to maximum of three years.
2. The person taking the loan should not be less than 18 years of age.
3. The processing of the application form is fast and the application is approved within a day to maximum 7 days.
4. The amount of loan is on the basis of the value of your property.
5. For collateral you can use your new house for which you are taking the loan.
6. You can us the loan amount for any purposes depending upon your needs.

It can be of two types:

• Closed bridging loans and
• Open bridging loans

The closed loans are the form of personal loan that you take for buying your new home after you have sold your old home but you have not received any installments form the person who has purchased your old house. The open ended loan is available in the situation when you cannot sell your old house but are going to buy a new one. But here you can take the loan only for the term of 6 to 9 months.

Advantages

The advantages lie in its very nature.

• They provide you with ready cash that you can use for any purpose, for extending your business, paying your lenders, for wedding and other personal financial reasons. The loan amount depends upon the collateral you place.
• As you are placing the new home that you are buying or any other property according to your estimates you can get sufficient amount. Although you placed the property as collateral but still you have the ownership with you.
• In the term of loan you have to pay the interest amount. You pay off the balance when you receive the proceeds form the sale of your old property.
• The loans are also given to the persons with bad credit score, CCJs but the here certain conditions need to be fulfilled by the applicants.