Personal bridging loans are the short term loans to meet the personal requirements till you arrange finances. There are times when you need urgent and huge capital for any of reasons. You sell your home or ideal property to meet the same but the sale takes time. You can take a personal bridging loan at that time to get immediate cash and can repay that amount with sale proceeds which you may be getting in near future.
While going for any loan, a borrower is very much concerned about the interest rate at which he has to repay the loan. Like any other short term loan a personal bridging loan also carry a higher interest rate. But not to worry, these loans are interest only loans, which meant that you have to only pay interest till you get the sale proceedings to pay the principle amount.
There are number of things for which you can use the loan amount.
• Debt consolidation
• Buying residential or commercial properties
• Purchasing car or boat or any automobile
• Dream holidays which you desired for a long time
• Investments in business proposals
• Wedding, education and health expense
Personal bridging loans are secured by the property being sold and allow you to borrow up to 70% of its value. In figures, the amount lies around £25000 to £100000. This limit varies from lender to lender. The repayment term is around 6 months and can stretch up to 2 years. Also, you have the option to repay the loan money before the repayment term. But a lender may charge you with certain amount of penalty, generally equaling to two month's interest.
Personal bridging loans depending upon the situation are defined by two terms. When you apply for a personal bridging loan after putting your property on sale it is called a closed end personal bridging loan. Where the property is yet to be sold, the loan will be termed as open end personal bridging loans.
Easy To Apply !
Online application form makes it convenient for the borrowers to apply for the personal bridging loan. Also, it promises to protect your personal details under data protection act 1998. You can fill the form after reading out the terms and condition for the loan. It just takes 3 to 5 working days to get the approval for a personal bridging loan after the first enquiry.
'Monetary support at the right time' is the motto of a personal bridging loan.