The downside to fast nature of these types of loan is that interest rates charged on them are relatively high, this is because not only are they short-term and for large amounts, but risks to lenders of non-payment are higher than for other circumstances and this is taken into account when loan rates are calculated. Although rates are high when compared to other loans available on market, when you take into account short amount of time over which this interest is charged, and benefits that a bridging loan can bring, costs are reasonable.

Bridging loans are designed to provide you with equity from your current home in order to make your new purchase, before you are able to sell your own property. The loan is secured against home that you are selling in form of a mortgage or second mortgage, and will allow you in general to release around 65% of property's value. With these funds you are then in a position to complete purchase of new property, and once your old property sells you can clear bridging loan. If you are considering such a loan, you should be confident of a sale, and that you will be able to clear debt within six months, as high interest rates are something that you do not want to be paying long-term.

Bridging loans are available to people that have found it more difficult to get mortgages, such as those with an adverse credit rating. This enables these people to build a track record before applying for traditional mortgage. Bridging loans can take from 48 hours at shortest to around ten days if circumstances are more complex.

Despite costs, bridging loans are very popular, after all if you have spent a lot of time searching for perfect property you will not want to miss out on it because of a relatively short delay in sale of your current property. It is in these cases where bridging loans can prove invaluable, enabling you to secure sale of home that you want, and concentrate on sale of your property at a later date.

Bridging loans can be provided for:

Residential property

Commercial property

Land

New build

Renovations or refurbishment

Speculative properties

Conversions

Overseas property

You may freely reprint this article provided author's biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available online loans via the http://www.directonlineloans.co.uk website.

Secured on your UK home, low cost, low rate, cheap, low interest debt consolidation loans can sweep away pile of repayments to your credit and store cards, HP, loans and replace them with one, low cost, monthly payment – one calculated to be well within your means.

With a Debt Consolidation Loan you can borrow from £5,000 to £75,000 and up to 125% of your property value in some cases.

A UK Debt Consolidation Loan is a low cost loan secured on your UK home. It frees up spare capital (or equity) in your home to repay your store card and other debts.

It can reduce BOTH your interest costs AND your monthly repayments, putting you back in control of your life.

Debt Consolidation Loan rates are variable, depending on status

Monthly repayments will depend on amount borrowed and term.

You may freely reprint this article provided author's biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available online loans via the http://www.directonlineloans.co.uk website.