Bridging loans help one in the buying and selling of his home.
Similarly, the commercial bridging loans are helpful to one in the purchase and sell of the properties, mostly the commercial properties.
A land, a business site or building are certain things that falls under the criteria of commercial properties.
So, you will never have to be worried of the gap in the buying and selling of the properties neither will you have to stuck in the mid of the transaction procedure just because of the lack of money.
These loans are short term loans as the borrower is given a very short period of time for paying it off.
The time provided is short because the borrowers can easily repay the loan by selling his existing property.
Here, the borrower will not have to wait for selling off the old property in order to buy the new one.
The required amount will be provided by these loans.
An amount ranging from £100,000 to £400,000 is being provided for a period of 1 to 12 months.
For availing these loans one must keep his existing property or the property to be bought as security.
As these loans are secured in nature, it takes very less time in getting approved.
Hence, a borrower does not suffer from the monotony of waiting for these too long.
The rate of interest of these loans is generally higher as these are short term and the lenders do so in order to be free from the risk factor.
A person may have a bad credit record due to several reasons like CCJs, arrears, late payment, bankruptcy or defaults.
Any person with any of such credit records is being allowed in the commercial bridging loans as for them too a loan to bridge the transaction gaps is necessary.