subject: Commercial Bridging Loans : Helps You Buy A New Property [print this page] Do you like a new property but are you stuck with selling the old one? Now, you do not have to worry, since Commercial bridging loans will help you. It provides you funds to purchase a new property while you wait for your old or existing property to be sold out. It is complicated to co-ordinate the sale of your old property and the purchase of a new one since the transactions happen at the same time.
These finance also commonly known as commercial bridging finance, makes all these transactions possible for the borrower. It helps the borrower to stay away from financial crisis. These funds can be used for commercial purposes as well as personal purposes.
Commercial bridging loans are short term and secured in nature. The amount that the borrower receives ranges from 500 to 100,000. The repayment period is 1 to 25years. The borrower has to place an asset as collateral against the loan that he takes. Mostly, the new property that the borrower has to purchase is kept as collateral. Therefore, if the borrower does not pay back the money on time, the lender can take charge of that property and get his money back.
To avail this finance the borrower has to fulfill some certain eligibility conditions. They are:
He must be a citizen of UK.
He should be above the age of 18 years.
He must have a stable job with a regular income of at least 1000.
Most importantly, he has to possess an active and valid bank account.
These finances can be availed through the online method. The borrower has to fill in an application form giving the lender some personal details that are required. The lender will verify the form and approve of it. Once the lender has approved the application, he transfers the money directly into the borrowers bank account.
