When purchasing a new property, you need to put in the money for a down payment. You might have applied for a mortgage but it will take 90 days to come through. In the meantime, you will want to move into the new property, but your existing property is yet to be sold. How will you meet the down payment and do this? Apply for a bridging loan.
How Can A Bridging Loan Assist You?
Short term bridging loans were once used by property developers and landlords, but they are now gaining popularity with home buyers. The reason for this is that they are easy to obtain. The loan application process can be completed quickly and the loan amount is credited to your account in a short while. This helps to quickly proceed with purchasing a new home by making the down payment. This way you don’t have to lose out on getting an attractive property because of the lack of a small amount of money needed to make the down payment. This loan has a short duration and so repayment will be completed quickly. Unlike a home mortgage, it will not carry on for a period of 15 to 20 years. The minimum loan duration is 2 months and the maximum is three years.
If your existing home is going to be sold within the next six months, you can inform the lender that you will start making repayments on the bridging loan after this period. You can also opt to pay interest plus entire loan amount after six months. If the home sale occurs earlier you can settle the loan amount faster and avoid having to pay interest. It is to be noted that this loan carries a high rate of interest so it is better to repay sooner than later. Since you can defer payment for some time, until the sale of your property happens, there is no need to hurry up with a sale. You can wait until a buyer offering a good price arrives and then complete the sale.
Short term bridging loans are what market savvy home buyers opt when they need to close the deal on an attractive property. They can get the dream property they want, in the price that is most optimal for them by using this loan to make the down payment. Without this loan, it is not possible to get the property on time. Lenders also offer this loan to cover the mortgage of an existing home. So if a buyer wants to sell their home property and buy a new one, but the old one still has pending mortgage payments, this loan can be used to finish those payments. This takes away the burden of having to pay loan plus interest on the old mortgage. When the property is sold the bridge loan can be repaid, which removes the need to spend money on it. All that the borrower now has to do is repay the loan and interest amount on the new home’s mortgage.
Whenever there is a change in the currency of any economy then there is a heavy transaction in the business market conditions of that particular economy. The GBP currency being low has made many different changes in the business market and especially the export business of the country is greatly affected with the low GBP currency conditions. All the different businesses of the country are facing this change, for some businesses this lower GBP currency is the point where they can generate more business and grow well and for some it is a situation where they need to face loss and the hard market condition for their business.
During the weak GBP currency condition the foreign buyers can purchase the same amount of the goods and the products by spending less of their currency. This clearly means that now the UK sellers can sell all their products at a much more reasonable price or even increase their profit margins. This clearly tells that the weak pound always favors’ the manufacturers and the exporters who do their business with the other countries and the foreign clients.
