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Bridging loan is an ideal midway for meeting the financial needs for real estate deals or mortgage property. What is bridging finance ? As what wiki explains, a bridge loan is a short term finance, taken for shorter period like 2 weeks but may extend up to 3 years, pending a larger loan amount. Bridging loan is actually taken in case when you have to buy a second property when first property is not sold yet. The bridging loan helps you to curb out this event and make financial arrangement for second property buying. Lenders usually keep in charge of the property on market rates and provides funds and loans on it. Who are bridging loan provider Basically loans provided for bridging purpose are private lenders and bank, merchants who look for greater growth and opportunity. Normally finance loan is available at an Interest rate of 4% p.a. which is next to nominal. These days even lending and borrowing has been made online. Nearly all the major service provider in this field has their own website which makes it easy for borrower to search and browse the most apt lender for them. To make bridging finance easier for the borrower, several providers have embedded bridging loan calculator through which they can get the rough estimate of how they are going to cost them and how deeply it is going to hit their pocket. Advantages of bridging finance loan The most important advantage of bridging loan finance is that it provides easy residential and commercial transaction and without it most of the real estate development is impossible. Other than this it hardly depends on your credit history. But if you do have a bad credit history then you may have to pay higher interest rate but nothing else. It helps you in a period of immediacy. What you need to pay during the bridging loan finance While you are under a finance / loan you need to pay following payments altogether:- Mortgage for your brand new home
Interest on the loan
Remaining mortgage on first home Other than this, your capability of paying it back through your regular cash flows or other assets. Most of the companies maintain the policy that your payback ratio of your monthly income should not be more than 36%. Although this is not hard core rule and flexibility is allowed depending upon the case and the loan amount. Conclusion – Bridging finance is the easiest way to fight the financial crunches when you don’t have enough cash flow for buying a second settlement and when the first one is still not sell. Kasif Raza is a content writer and like to write on many topics such as commercial bridging loan To get more information Just visit- http://www.positivebridgingfinance.co.uk
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Bridging loan calculator, What is bridging finance, Bridging finance loan,
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