Open bridging Loans

Open bridging loans

Bridging loans are used for quick and easy finance and for many different reasons. An open bridging loan is where a guaranteed repayment option or date to repay the bridging loan in a given time frame is not that clear i.e. you have put your house on the market but as yet you have not received an offer so it is more difficult to say exactly when your house is to be sold and the bridging loan repaid. In this way the loan is viewed more risky by the bridging loan company and as such the interest rates obtainable are normally higher.

Example:

Your property is on the market for sale but as yet you have not found a buyer for the property, however your dream property has also just been put up for sale but has had lots of interest and you may not have sold your property in time for the purchase of the desired property. An open bridging loan can release the equity in your house for a period of time allowing you to purchase the desired property before selling your current property.