Closed Bridging Loan
A Closed Bridging loan is a short term loan secured on a property by way of a first charge mortgage where the exit is guaranteed by way of a sale or Remortgage.
What are closed bridging loans?
A closed bridging loan is a popular type of personal loan. It is used in situations where you have purchased a new home and sold your old home, however, you have not received the proceeds soon enough. One of these advances is available to help you get the new home you want. Once both transactions are completed, the total amount of the payment should be repaid.
Quick Short Term Finance
This type of advancement is a great choice for those with little or no credit because you are using the new home as collateral against the money borrowed. Any type of property can be considered as security for this type of advance in England, Scotland and Wales. It is a kind of mortgage secured on your home.
This credit can be taken out for many reasons other than for buying or selling property. You may need extra money for a holiday, wedding, and business or just to pay some bills. The closed bridging loan is a short-term credit, with the average length of time to repay being about 6 months. Remember that you are setting a specific time period in which to repay the loan. Make sure that you allow yourself enough time to make the payments required and that the monthly payments are not too steep. There are significant penalties if the money is not repaid on time, according to your payment schedule.
In short, a closed bridging loan may be used to secure a property while waiting for existing property to sell. It could be used to raise funding quickly when a property is bought through an auction. Other uses can be to allow a buyer to purchase the new house, even in the case where an established chain of buyers breaks down.Yet another uses for a short-term closed loan might be to carry out improvements, refurbishments or developments to the house which may be needed prior to gaining a mortgage.
All types of credit history considered
Many lenders offer these advances to most people, even if your credit rating is poor or if you are self-employed. Typically there are some administrative costs associated with the money borrowed as well as interest. Repayment is made to the lending company in monthly installments.
Short application process
Closed bridging loans are usually rather swift to complete, meaning you can apply and receive the funds quickly. Keep in mind that the more money you want to borrow, the longer the application and approval process will take. In some instances an appraisal will need to be done on your home to assure its value will cover the amount of the money borrowed. An appraisal can add several days or a week to the approval process. If you have had a recent appraisal and the amount of your credit is small there may be no need to perform a new appraisal.
Ensure you can repay the funds
A closed bridging loan may be the perfect answer when you are in need of some quick funds. Make sure you have the ability to meet the monthly payments and know that the money borrowed will need to be repaid quickly. As with other forms of bridging finance, we are in a position to offer you attractive rates of interest.