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Personal Bridging Loan
Every people is blessed with personal wishes. Among them, there are many who dream regarding good property. But, due to scarcity of funds, they can’t purchase the property of their choice. Then the question arise whether they have to drop the plan to purchase their property.
As it is said that there is solution to every problem, personal bridging loan can be considered as a solution as it enables the buyers in purchasing their dream home by providing quick funds in no time and the loan need to be paid when the property is sold.
Personal bridging loan maintain the bridge between the cash vacuum and the purchase of a new property and sale of the old property alongside. Borrowers need to pledge their home as collateral while applying for personal bridge loan, which lasts for short period of time.
However, there is open-ended personal bridging loan and closed personal bridging loan. Open ended personal bridging loan is considered as a type of loan where sale of property is yet to be done whereas closed ended personal bridging loan dent that the sale of current property and purchase of new property has already been made. In both the cases, the value of the collateral pledged decides the amount, borrowers can achieve in the form of personal bridging loan.
The loan amount limit in personal bridging loan ranges from £ 25000 to 500000 on short-term repayment . Personal bridging loan is considered to be interest only loan as interest amount is only paid till the borrower pay off the principal amount after selling the property.
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