Secure The Dream Of Your Own Property With Bridging Loan!

by / Tuesday, 15 September 2015 / Published in Home Loans

Buying the new property or your dream home is quite a straightforward process where you find the amazing property, sell your old real estate and buy the new one. But unfortunately, in this real world things don’t work in the same smooth manner because many time people don’t find the right buyer for their old property to buy the new one. Depending on the location, it takes time to find the buyer that is ready to pay the right amount. And it might also complicate to buy new property and sell the old one simultaneously.

In such case, if you choose the “buy first” path where you buy the property of your dreams before selling your existing property then you must consider availing the bridging loans. It provides the right solution to secure the dream of your own property by covering the expenses to buy the new property before finding a buyer for your existing property.

About Bridging Loans

As the name implies, these finances are intended to ‘bridge the financial gap’ that arise when one is purchasing a new property before selling his/her current house. It helps seeker to pay the down-payment of the new home purchase by getting the sufficient amount as a bridging loan.

These are the secured loans that take buyer’s new and existing properties house as security. The loan size and term is decided as per the cost of property and repaying ability of the applicant so that one won’t find any issue while making the repayment.

Borrower can make the easy payment of borrowed money after selling the existing property and get right rid of the debt. If one wish than they can use it a home loan and make the payments as per the agreement. But there is no doubt that bridging loans are helpful to buy your dream house.

Awesome Benefits To Enjoy With The Lending Offer:

    No Waiting To Buy Your Dream Property

    With these monetary schemes, you can simply buy your dream house right away without waiting for someone to buy your old place. These finances allow you to buy new property now and see the existing one later.

    Two important things to consider while applying for bridging loans:

    • Choose the realistic time frame to sale the property and make the payment of loan.
    • Choose the realistic loan amount as per the selling price of your old property and purchasing price of new property so that you won’t face any sort of issue.

    Standard Variable Rate

    Some banks and lenders charge high interest rate in these types of short term loans but there are some genuine lenders offer these financial services at the standard variable rate. Keep it in mind and compare the multiple lending options to choose the option that is right for your pocket. It is notable that longer time you take to sell your property will make you pay more on interest so sell your property quickly to settle the debt in short term.

    Affordable Loan Fee

    One needs not to worry about higher application fees and ongoing home loan costs as they are same as a standard home loan. These affordable fees make it the suitable option to choose when the situation arises.

    Freedom To Make Unrestricted Repayment To Reduce The Interest Bill

    Borrowers are free to make the repayment of unlimited principal and interest (P&I) amount in the bridging term till the existing property are sold. It is quite helpful reduce your interest and make repayment easy in the future.

Advice

Before applying or choosing the bridging loan, it is suggested to read the terms and conditions of the loan agreement very carefully. It helps you discuss unclear points beforehand with the lender to avoid any sort of issue in the future.

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