Residential bridging loans enable in buying a new home immediately. You can repay the loan when you are able to sell your old home at the desired price. Till then the lender allows you to pay interest only on the loan and the principal amount can be paid back at one time. Read the article for the details.
Have you located a new home and want to buy it immediately? Well, the only hurdle is that you do not have funds right now and selling your old home will take time as you want the best price. In such a situation you can rely on residential bridge loan for timely financial support. A residential bridging loan is thus an opportunity for buying your dream home without selling the old homes.
Residential bridging loans are secured loans. You can offer any valuable property as collateral for residential bridging loans. The loan amount will depend on the value of the property placed as collateral. The advantage of residential bridging loans is that you can immediately buy a new home through the loan amount. Another advantage is that the loan amount can be easily repaid at one time when you are able to sell some old property. What is more, you are not required to pay any instalments until you pay back the principal amount. This is because you are given the option of paying only interest on the loan.
Residential bridging loan is a short term loan, given usually for a few weeks to a year. Because of such a short repaying duration, lenders tend to charge a higher interest rate on residential bridging loans. So it would be a wise step if you first take rate quotes of the lenders. Compare them and you will surely come across a lender having a comparatively lower interest rate for you.
Also, note that residential bridging loans are easily approved for bad credit borrowers as these are fully secured loans and have little risks for the lenders. So if you have a damaged credit history due to past late payments, payment defaults or county court judgments, still residential bridging loans are available without any hurdles. Avoid extending the loan period as it involves even higher interest.
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