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About Bridge Loans !
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A bridge loan is one that allows you to
complete the purchase of property while the sale of your
current property is still pending.
The reason why you may need this type of loan is
that the sale of your home or property may be delayed.
If you need the money from that sale to complete
the purchase of the new property, this type of financing
may help to accomplish it.
The amount of money that you can borrow with one of
these advances will depend on the property values,
however, generally speaking, you should be able to get
up to 85% of the property value.
The property value usually comes from an
appraisal of both properties that may be required before
the financing is approved.
The interest rate of the bridge loans is usually
higher than the interest rates offered for traditional
advances such as mortgages. Expect to pay at least
several percentage points more, however, with the onset
of many finance companies, the competition often lowers
the prevailing rate charged.
Use the Internet to shop for these advances and
look for rates as well as the length of the application
process.
This type of financing is a specialty advance that uses
the property as security.
If you fail to pay the advance, the bank can
repossess the property and sell it. For this reason, be
sure that you will be able to make the scheduled
payments on time.
Bridge loan can also be used for other purchases as
well. Many people take out these advances to pay
for bills or for vacations. As long as you can make the payments on time, the money can
be used for whatever you need. Remember that the
interest rate is higher on these types of advances and
if you need a credit for bill payments you may be better
off taking out another type of advance instead.
When shopping for this type of advance keep these things
in mind:
Application process time – It should be a
streamlined process that can be filled out quickly and
easily.
Approval process – the bridge loans approval
should not take more than a few days.
Length of the advance – the advance should be
able to be easily paid back within the allotted
timeframe.
Penalties – make sure you understand the
penalties that may be involved if there are late
payments or if the credit needs to be extended.
Interest Rate – Shop around for the best
interest rate you can find
Administrative Charges – Look for low
administration charges or processing fees.
As you can see bridge loans can be very useful as a
quick short-term loan. However be very careful that you
are aware of the high rates of interest and have taken
this into account.
Bridge
Loan Mortgages
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| Who's Suited |
- Purchasing
property at auction.
- Property refurbishment or conversion.
- Chain breaking mortgages.
- Homeowners who have been or about to be repossessed.
- Funds required within days not months.
- Short-term finance for business purposes.
- Commercial property purchase and refinance. |
| Features |
- 100% LTV
Available.
-Market leading rates from 0.75%.
-1st charge or second charge equity release. |
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