To get temporary bridging finance means that you borrow money on a short term basis, normally at a higher interest rate than normal. There are quite a few different lending companies that one can choose from when they are interested in something like this, so your best option will be to choose the one that seems the most professional, trustworthy and has the best interest rate. A loan like this is perfect for business or personal reasons; many business people take out this type of temporary cash when they purchase properties from auctions. A personal legal issue us enough reason to take out bridging finance too; there are many different reasons why people make use of such a loan, but the main reason is to have cash while you wait for your home to be sold.
In order for you to qualify to get temporary bridging finance while you await the sale of your home, there is quite a process you have to follow with most of the lending companies. After you have filled in your online application, you might be asked for a copy of your ID, proof of address, bank statements, valuation certificate, mortgage statement and a list of all your expenses. Not all companies will ask for all this documentation, but if you want to borrow money because you are waiting for your home to be sold, then this is usually the procedure that is followed.
In order for you to work out how much bridging finance you qualify for, what you have to do is determine the difference between the amount you are selling your house for and the amount you owe on your bond; for example, if you are selling for R500,000 and you still owe R400,000 on your bond, the difference is R100,000 which will make your maximum finance eighty percent.R100,000 x eighty percent gives you R80,000. Therefore, R80,000 is what you will be able to borrow as temporary cash against the proceeds of your houses’ sale. If you need to get temporary bridging finance, it will save you some time by doing the calculations on your own and only contacting the company when you need the cash.