Want to buy a property by selling an existing one but can’t do so as you are ridden by insufficient funds and bad credit. Well here’s the solution in the guise of bad credit bridging loans. As the name signifies, these loans are used to fill the financial chasm between the sale and purchase of properties.



They are basically availed when the person needs money to buy property and simultaneously he is waiting for cash realization from the sale of another property.

These are short termed in nature .Being a product of short term market; bad credit bridging loans carry high rates but are competitive in the financial market. The borrower can also get competitive rates by means of research and making comparison between various loan offers. Generally, these loans come with competitive increased rate of interest.

These loans cater to the wide spectrum of society like:

Discharged Bankrupts

Individuals and companies

Self employed

How to apply

You can opt for bridging loan for persons suffering with bad credit in a number of ways. You can access these loans from your nearest banks, lending societies, financial institutions or online. The lender while approving bad credit history bridging loans requires the borrower to furnish certain details like financial status, flow of income and value of the property.

The following properties are acceptable as collateral for such loans:

•Residential properties

•Commercial or Semi-commercial properties

•Auction properties

•Retail shops

•Buy to let properties

•Development sites

Loan amount and Repayment scheme

The amount offered can range from £1, 00,000 to £4, 00,000. The loan term for bridging loans thus arranged ranges between one to twelve months. In this time period you have to sell your existing property and payback the loan. You are shielded from the anxiety of repayments as they can be done when you have sold your existing property.

So if you have plans of selling the old property to purchase the new one, but cannot purchase the new property right now due to bad credit, the solutions are bad credit bridging loan.

Summary

Bad credit bridging loans are tailored to cater to the cash requirements while purchase and sale of properties. These loans serve the poor creditors suffering from arrears, CCJ’s, IVA’s, default in payments etc. Though the rate is high but it should not be a deterrent since you are clinching a profitable deal with their assistance.