Given these facts, most probably your loan will come on slightly more tougher terms than a closed bridging loan. This means that you will have to pay more for the arrangement fee, for the interest rates and for all the other extra charges.

• Keep in mind that an open bridging loan also comes with a short term, just as a closed bridging loan (somewhere between 6 and 12 months)
• You must have some sort of plan arranged, so that in the case your home sale fails until the term is up, you can repay the loan, without having to pay outrageously high fees for interest and fees
• As collateral to your loan, you will need to add your property. Basically, if you fail to pay back the loan in full within its term, the lender may repossess your property in order to recuperate his losses.
• As a measure of assurance, the lender will take all necessary steps in order to make sure he will be able to recuperate the loss.

Just as with any other types of loans, you really need to dedicate quality time for research. Make sure you will be working only with well established names on the market. There are a lot of scams out there, and you cannot afford to jeopardize the safety of your own home. Also, an open bridging loan should constitute an alternative only when you have exhausted all others (refinance, re-mortgage, mortgage loans).

It is risky indeed, but if you make sure you understand all the terms and conditions, and if you treat this loan with utmost responsibility and commitment, you will definitely be able to find an appropriate financing product. Approval time for these loan may vary (~1 to 2 weeks time), and by that time you should have made all the necessary arrangements (like a proper appraisal of the home). If you feel that the product you are being offered is not affordable to you, given your present financial status, you should under no circumstances proceed. There are many offers available, so you can always search for another financing option