Vanquish your financial worries with stopgap Bridging Loans!

Bridging loans, as the nomenclature suggests are utilized in the time interval between the purchase of a property and sale of another. In simple words, bridging loans are innovative financial products conceptualized by lending agencies to help borrowers tide over temporary cash shortfalls.

An example would illustrate this better. Suppose you want to buy a piece of property at an auction that appeals to your better half but you do not have enough liquid cash to make an outright cash purchase. You may possess a property of an equivalent value but finding a buyer may take time. In the meantime, you run the risk of loosing the property to other bidders in the auction. Many buyers find themselves in a similar predicament. It is at that juncture that Bridging Loans prove to be quite handy.

Bridging loans offered by financial institutions help buyers make the stipulated cash payments after the end of an auction and acquire a second property in your name. Once you find a suitable buyer for your first property, you can use the cash to pay off the lender in full. Bridging loans carry a very high rate of interest and are offered for very short tenures ranging from one to twelve months.

Since the interest rate is quite high therefore these loans are also offered to buyers suffering from bad credit i.e. those having arrears and County Court Judgements (CCJ’s).A close analysis of the UK financial market reveals that the amount of money offered in bridging loans is in the range of ₤15000 to ₤25000.

These bridging loans are not only helpful in real estate transactions but also help in business transactions. Entrepreneurs who are waiting for the next round of financing from financial institutions require bridging loans to take care of their immediate commitments. Once the desired funding has been obtained from financial institutions, these loans can be paid in full.

Thus, bridging loans are not only instruments which provide financial safety during a crisis but also help borrowers grab opportunities which otherwise would have eluded them for lack of funds.

For More Details Visit:

1. Bridging Loans For Greener Pastures
2. The Right Loan To Suit Your Size
3. Secured Bridging Loan UK
4. Bridging Loans Bridges Time Gap
5. The Quick Fix Solution of Short Term Bridging Loans
6. Bridging Loans to Bridge the Gap between Your Pocket and Needs