Bridging Your Financial Requirements

Lenders provide financial assistance to people who bid in auctions and come out successful. Usually, the payment period in an auction purchase is very less, and therefore, money has to be arranged quickly. The problem arises when a purchaser is able to bid successfully in the auction, but is unable to arrange payment amount in a short period of time.

There are many sources of financing a real estate deal like mortgage, financial assistance from friends and relatives, market loans, etc. The choice has to take into account all the parameters of your requirement. Easy availability of finance plays a big role in the growth of real estate market. If two interlinked financial transactions in the property market fail to materialize, many more failures can happen as a result of property-chain; one failure leading to another and having far reaching consequences. To effectively take care of this problem, loans are available in the market.

Bridging the financial gap by resorting to financing is an easy solution for the person who has fallen short of payment required in an auction purchase. Bridging Finance is available for a period that may extend up to 12 months. Being a short term solution to your financial requirements, it has to be quick and it is. Lenders do not take much time in processing the application requiring bridging finance. The finance amount may be between 20,000 pounds to 250,000 pounds depending upon the requirement of the borrower.

The interest rate on bridging finance or bridging loans is usually competitive. It floats around 2-4 percent higher than the prevailing base rate of interest. Two kinds of Bridge are offered by the lenders ?open bridge and closed bridge. The former one is meant for the buyers who have traced their ideal property, but are yet to put their existing home for sale in the market. There are fair chances that lenders will ask may questions in this kind of financing deal. You may also be required to offer extra equity in home to support your loan application. The later one relates to a situation when the borrower has already entered put his home for sale and he needs money only to cover the intervening time period. These types of bridging finance deals are relatively easier to avail.

For easy access to the lenders in the market, a borrower may apply online for any type of financial requirement. The Internet, as a source of vast information, is helpful in comparison of financing deals available with different sources.

About The Author: For more information about bridging finance deals. Please visit our website: http://www.longdogfinance.co.uk/

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