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A bridging loan is a secured loan where a significant property has to be placed as collateral jordan shoes 2012. It includes residential properties auction properties commercial and semi commercial properties development sites retail shopsIn a bridging loan, heavy machinery and inventory can also function as security. The loan amount approved in a bridging loan ranges between ?25,000 and ?500,000 jordan shoes for cheap. The loan is offered on the value of the collateral and not on the purchase price. A method called loan to value ratio is used for calculating the loan amount moncler jackets.com/. Generally up to 80% of the total value of the property is approved in bridging loan. Bridging loan can be obtained in two types - closed bridging loan and open bridging loan depending upon the status of the property deal cheap nike shox. If the deal has already been finalized, then the loan will be a closed one. But if the borrower is yet to find a buyer for the property, then it will be an open loan which is slightly risky for the lender in case the sale does not materialize. The repayment term of bridging loan is very short stretching from 1 to 12 months. During this period the borrower has to sell the existing property to repay the loan. Bridging loan has very high interest rates due to the short term and high risk involved in approving it.
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