Cheap Bridging Loan: Buying Before Selling Your Property Article

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Cheap bridging loan: buying before selling your property

Borrower usually consider bridging loans expensive which is entirely a misconception. As cheap bridging loans are short term loans that range from 1-12 months, so APR of the loan seems to be high.

Author: Eva Baldwyn

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Getting a dream house is only possible if you have hefty amount of money in your pocket but, what if your money is blocked on the sale of your previous home? In such situation, borrower can opt for the cheap bridging loan, as at that crucial time bridging loan will offer you prompt solution.

Cheap bridging loans are meant to deal with borrower’s financial arrangement for buying the property i.e. it provides loan till you are in position of selling your old property. For availing the loan for your new home, borrower has to place his existing home as collateral against loaned amount.

Bridging loan or swing loans are a short term loans and the loan amount offered under bridging loans generally varies from £1, 00,000 - £4, 00,000.

Depending on the security assurance by the borrower, circumstances and repayment abilities of the loan amount can vary.

While dealing with bridging loan, collateral like residential properties, commercial or semi-commercial properties, auction properties, retail shops, buy to let properties, development sites etc are considered as security against the loaned amount. As the loan amount depends upon the value of borrower’s property.

Borrower usually consider bridging loans expensive which is entirely a misconception. As cheap bridging loans are short term loans that range from 1-12 months, so APR of the loan seems to be high. Since bridging loans are for the shorter time frame, so the rate of interest is high as risk borne for the lender is more.

During the repayment period if borrower does not repay the loans amount he may end up loosing his property to the lender.

With all that, borrowers like bankrupts, CCJ’s, arrears, self employed etc can opt for cheap bridging loans as it based upon the property of the borrower.

Borrower finds easy to deal with the cheap bridging loans, as it helps the borrower in buying the property.

About Author

Eva Baldwyn aims to inform common men and women of the several issues involved in Residential Bridging Loans and mortgages through her articles. An MSc in Economics & Finance from the Warwick Business School. To find Cheap bridging loan, Commercial bridging loan, Personal bridging loan, Short term bridging loan, 24hr loan service visit http://www.easybridgingloansuk.co.uk

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Cheap bridging loan: buying before selling your property