Your plan of buying a new house may be hindered if you are not able to sell your old house in time. If the money to come from the sale of your old house is the only means to pay for your new house, by the time you sell your old property, the new property which you want to buy may already be sold to someone else. To overcome this financial gap you can borrow a fast bridging loan from a principal lender. Borrowing a high speed bridging loan is the best thing to do in such a situation of financial dilemma.
You can acquire a short term bridging loan by providing a security to the principal lender. The property which you provide as a security can be any property. In some cases it can even be the house which you want to sell. The bridging finance offered can be open ended (where you have not sold your old house), or close ended (where you have already sold your old house).
Bridging loans are short term loans. Therefore the repayment period is shorter. Being a short term loan, the interest rates may be comparatively higher. You can receive the loan within a very short period of time, after applying for it, if you are able to provide all the necessary documents.
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Bridging loans, as they are often called, enable you to bridge the gap between buying and selling. The application of these loans is not limited to buying and selling a home; it find its uses in the business world also where financial gaps have to be filled by taking a short term loan.
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