Can I get a bridging loan on my property
It is a well known fact that the sale of properties does not take place within a short span of time, and the long drawn procedure can result in the delay of funds. If you are willing to buy a home, but cannot wait for your old property to get sold, you can take the help of a bridging loan. You might wonder whether you can get a loan on your property. Well, this will depend on various conditions, and you will have to provide collateral to the lender against the loan. When you are part of a property, it is obvious that you would like to carry out the process of purchase and sale simultaneously. However, this does not take place at your own will every time. This financial problem can often make you miss your new purchase, and therefore, in such a situation, you should take the help of the bridging loans.
Knowing Your Options:
1. There are different types of property bridging loans that you can take. You can go for a closed bridging loan where the loan will be pre-agreed to be repaid on a particular date. However, you can get these loans only if you have already exchanged against the sale of your existing property. This is because the percentage of sales after exchange is lesser. Consequently, the lender remains free from risks.
2. On the other hand, you can also go for the option of open bridging loan. You can take this loan when you have found the ideal property, but do not know the exact date when you can obtain it. In this context, you might have to provide lot more details to the lender, particularly the bank. You will even have to provide the details of your property along with the proof that your current home is marketed actively. In addition to that, the lender will also check that you have equity in your current property. In the cases of these loans, one year is the standard time for repayment. However, if you need an extension, you might have to negotiate with the bank.
3. You should be able to satisfy the lender that you can pay off the interest regularly along with the complete repayment of the loan.
4. If you are planning to exit a fixed loan, you might have to provide some extra charges along with some establishment charges on the new loan.
5. The lender might even put some restrictions on the terms and conditions of settlement.
Make sure that you acquire complete knowledge and information about your eligibility to get property bridging loans. This will not only help you to be aware of the terms and conditions associated with these loans, but you will also be able to make the right decision. In addition to that, you should also make the best effort to repay the loans on the due time so that you do not have to pay unnecessary charges on the loans. This can help you to save a great amount of money.
For more information, visit morphybridgingloans.co.uk.