| Generally when an individual sets an eye on a | | | | can be residential, commercial, semi |
| property, he has to take a lot of things in | | | | commercial, industrial sites etc. |
| to consideration. The price factor is the one | | | | |
| which should be given utmost importance. | | | | As specified earlier, bridging loan is an |
| There will definitely be a cash shortage when | | | | excellent of availing finances for those |
| buying a property. If the individual wants to | | | | borrowers who are in need of quick finances. |
| seal the deal quickly, then he has an option | | | | The loan gets approved within 3-4 days after |
| to avail bridging loans. | | | | filling the application form. |
| | | | |
| Bridging loans are those loans which help to | | | | There are two types of bridging loans |
| bridge the financial gap which arises while | | | | available in the financial market. They are |
| buying a new property and the borrower has | | | | open end bridging loans and close end |
| not yet sold the existing property. These are | | | | bridging loans. Open end bridging loans are |
| short term quick loans and can be accessed | | | | meant for those borrowers who have selected |
| easily. This loan is sort of secured loan as | | | | the property but have not sold the existing |
| borrower has to place his existing home as | | | | property. While close end bridging loans are |
| collateral. On the basis of equity value of | | | | meant for those borrowers who have sold their |
| collateral, lenders approve loan amount. | | | | existing property and are available for a |
| Under this loan scheme borrower is entitled | | | | fixed time period. |
| to borrow an amount of £100,000 which can | | | | |
| be further increased up to £400,000. | | | | Bridging loans offer a helping hand to the |
| | | | borrower in the form of quick finances. It |
| Although Bridging Loans are secured in | | | | provides quick finance to borrower and |
| nature, interest rates charged are slightly | | | | enables them to seal the property deal |
| higher. This is because lenders approve the | | | | without any fuss. |
| loan for a very short time period. This loan | | | | |