To get a bridging loan, you either have to keep the property you are going to buy as a collateral or the one which you are about to sell. Lenders generally offer an amount of ? 100000 to ? 400000 in these loans with a repayment term of 1 to 12 months. The interest have to be paid regularly until you pay off the whole loan amount but you do not have to worry as these loans are for a short term only. In fact, you should try various lenders and talk about the deal so that you can manage to get a suitable interest rate instead of the higher ones.



However, there is open ended personal bridging loan and closed personal bridging loan. In open ended personal bridging loan the sale of your current property is yet to be made. While in the closed ended personal bridging loan the sale of your current property and purchase of the new one has already been finalized. In both the cases, the collateral decides the amount to be borrowed.

Bridging loans are available for people with bad credit record too. Your poor credit score due to CCJ's, arrears or bankruptcy can not hamper your way in gaining the loan amount. As you will keep your property as security, your poor credit record will not matter much.

Thus, bridging loans gives a good relief when you are in utmost need of finance. Selling off your old property and buying what you wanted to buy, has now been made very easy with bridging loans.