regulated bridging loans have become an effective platform for all those people who are planning to either sell their home or to buy a new home. Right through the use of bridge loan, you can easily carry upon some mortgage over your existing home and also take out a mortgage on your new home over a similar time.
Bridging loan is also known by the name of gap loans or swing loans. They are based on short term process for a loan where they might be offering a higher rate of interest as compared to conventional loans. The only risk that is specified in the bridging loan is that it is not possible enough that your home will be selling at the same time duration, which is mentioned in the bridge contract. Therefore it is essential to acquire the bridge loan for at least one year of a period or till the time under which you are sure of the fact that your home will be sold out. Some of the lenders will issue the loan for at least 5-6 months. If your home is not sold out within this specific period, then you have to renew the loan contract once again.
There are two types of bridge loans available for the users as mentioned below: