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Written by David Willetts
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In times of extreme cash shortage, and large purchases are being transacted such as property it may be of value to consider a bridging loan.
In times of extreme cash shortage, and large purchases are being transacted such as property it may be of value to consider a bridging loan.
The name implies that it is appropriate for short term use only, and may usually be used to ‘bridge’ the gap between the purchase of new property and the receipt of funds from the sale of existing property.
Should the dates of those transactions not co-incide, the bridging loan can be used to pay for the new property and be repaid upon receipt of the funds from the property you may be selling.
Remember that although relatively easy to arrange, there will be a higher than normal finance charge applied.
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