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What is Open ended and closed Bridging Finance?



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What is Open ended and closed Bridging Finance?

There are two forms of bridging finance, these are the open ended and the closed bridging finance. The open ended bridging finance type allows for you to apply for bridging finance even when there is no sale pending for the home which you have used as security for that loan, this type of mortgage has a higher rate of interest. Closed ended bridging finance is when you know for sure when the close of the sale will take place, this type of mortgage has a lower rate of interest compared to the open ended mortgage. The closed bridging finance option is ideal for those who have very little or no deposit for the purchase of the new property. Any type of property can be considered as security for both these types of bridging finance. Closed ended bridging loans are usually very fast to acquire, and are a good option if you need the cash fast. In comparison the open ended method may take longer as the lender will have to assess the risk further before lending to you.

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Bridging Finance Mortgages Frequently Asked Questions

Are Bridging Loans Regulated?

How is a Bridging Loan secured?

What are the Costs of getting a bridging loan?

What is Open ended and closed Bridging Finance?

What is the process of getting a Bridging Finance loan and how long does it take?

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"Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage "


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