Bridging loan is actually the loan option available for short term. It is usually for the period of 1 to 12 months and may vary from person to person according to the requirements. This type of loan is generally provided against some type of security where a borrower requires keeping some type of asset as collateral against the loan, to the lender.
These loans can be taken for satisfying any type of requirements and can also be taken in addition to the mortgage. These are meant for people who are in need of funds for their urgent requirements. It is quick and once approved by the lending company the finances are transferred to the borrower’s account in just few days.
Since these are the short term loans the interest rates can be quite high which may prove costly for many. The rates of interest depend on the amount of loan taken and the amount of time it is taken for. The interest is to be paid monthly and there are other fees applicable which has to be paid by the borrower. These may include legal fees, administration fees, valuation fees, etc.
Advantage and disadvantage
The main advantage of getting these loans is its flexibility. This means that the borrower may use the loan amount for any purpose. Also there are lenders that provide extra benefits to their borrower. They offer the borrower an option to repay the loan amount before the agreed date. This can save the borrower from paying extra interest rates which is paid on the monthly basis every month.
One main disadvantage of these loans is the security required. Present financial condition of the borrower does not matter much while getting the loan. But the type of security given is rather more important and can also help in lowering down the interest rates. The security kept can be any type of property whether residential or commercial. The value of security is also the main factor which decides the amount of loan one can get with the lending company.
Bridging loans serves as a fantastic source of finance for people indulging in property or real estate dealing where utilizing the loan amount wisely can help in earning great profits. Using the power of internet while searching for the best bridging loan provider can help you sort out your problem fast and easy.
Bridging Loans Commercial Acceptances is one of the largest and most respected short term bridging loan specialists. We enjoy a reputation for the quality of our service from initial enquiry through to repayment of the bridging loan.