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