So, you simply need to buy a new home. And you have already set your eyes on a residential property that you have to acquire as early as possible or there are number of grabber roaming around. But you are in a dilemma as you do not have enough funds at hands while it will take some time to sell the old home. Residential bridging loan comes to your rescue in such crises.
Residential bridging loans are especially meant for buying a residential property like home. When you have decided to buy a particular residential property all you do to take required finance is apply to residential bridging loan provider. He will sanction you the entire amount necessary to buy new home. When you are able to finally sell old home or any old property the sale amount is utilized in instantly paying off residential bridging loan. Thus the loan functions as a temporary arrangement of finance till old property is sold by the borrower.
Residential bridging loan is secured by the lender through any property of the borrower. Often the very property put on sale by the borrower is taken by the lender as security or collateral of the loan. Because the loan is all secured, advantages of any secured loan are naturally attached to it. Any amount can be borrowed on the basis of collateral enabling in buying even high priced homes. However in case of a very high amount to be borrowed, the lender will evaluate equity in collateral. Usually lenders are willing to offer 65 percent of value of collateral.
Residential bridging loan is approved and is in borrower’s hand within 24 hours. But for such a quick approval the loan seekers should ensure that all the information provided by him is accurate.
As far as interest rate is concerned, lenders usually charge higher interest rate as compared to other secured loans. This is because the loan is a short term loan. Borrowers will return the loan as soon as old property is sold which takes few weeks or months. But the relief is that the borrower pays only interest during the repayment period. No monthly installments are paid.
Because of adequate collateral, even bad credit people can avail residential bridging loan without being enquired much by the lender. Though a good credit always helps in taking loan at easier terms but in this case bad credit is equally considered by the lenders.
Take a course of internet for searching residential bridging loan providers. You will find many of them there. Compare their interest rates and other conditions. Settle for suitable lender and apply to him online. This way the loan approval will come soon.
Residential bridging loan surely enables in acquiring a new home instantly. Make the most benefits of the loan but pay off the loan as soon as old property is sold as higher interest rate may trouble you later.