Many of your property deals just end up just because you don’t have enough funds when you need them. A thought comes in your mind to sell the property which you are having with you to buy the new one from sale proceeds. As everybody knows it takes a lot of time to sell a property. It is very much possible that till the time you get the money, the property you have chosen is taken by some other buyer. So what will you do now, yes you can do nothing at that time. So to save yourself from such a position you can take Short term property loans or bridging loans.
This is a loan that is usually taken out to solve a temporary cash shortfall that may arise when buying a property. It is like when you want to buy the second property before the sale of the first one. These loans are secured by the property going to be sold as collateral. The following can be used as collateral:
• Residential properties
• Commercial & semi-commercial properties
• Auction properties
• Development sites
• Buy to let properties
• Retail shops
• Land with planning permission etc.
Like any other short term loans, these loans also come with a higher rate of interest.
A lender will allow you to borrow up to 65% of the property offered. But with increasing competition in the market, there are certain lenders which offer you even higher percentages of the value of the collateral. As a standard amount you can borrow an amount between ₤25000 to ₤500000. But larger the amount, the more the time required for approval. However, the overall time needed is much faster than other loans.
Repayment is made once you get the sale proceeds of your property. You are charged with interest till that date. These loans can be repaid in a period lying within one month to 12 months. There is also an option to extend the repayment term depending upon the circumstances.
Applying for a short term property loan is not a difficult job. As the internet has become the primary source of communication these days, loan lenders also have their own interactive websites. These sites are equipped with tools for comparison of different loan quotes, loan calculators, etc making life easy for you. You can simply log on to these websites to get benefited. The application form requires you to fill simple details like:
• Name of the borrower
• Mobile no.
• Email address
• Value of the collateral
• The amount you are looking for
• And certain small details varying from lender to lender
Short term property loans can help you get your new property and pay for it afterward. So don’t wait for somebody else to take what you have chosen to buy. Get a short term property loan to get the property of your dreams.