What is a Bridging Loan?

Bridging Finance is a short term loan secured on a property. The property used can be a residence, investment property or even commercial premises and the loan can be either a first or second charge. It can be a property that is already owned, or one that is being purchased.

Typically a bridging loan will be classed as open or closed. Open bridges have no definite end date or repayment method, whereas a closed bridge will have a definite exit date and plan in mind. (i.e. a mortgage offer is being produced) The loan is often required at short notice due to unforeseen circumstances. The fast turnaround of a bridging loan (Typically 7-10 day) makes it an ideal solution for the following situations.

Need to break a property chain?

Purchasing a property before the sale of existing property completes.

Fancy a bargain at auctions?

Buying a property at auction without worrying about 28 day completion deadlines.

Spotted a development opportunity?

Need to buy a property in a poor state and renovate before securing a mortgage? A bridge is ideal as a property with no bathroom or kitchen can still be used as security.

Are you in a contract race?

Apply for a bridge at the same time as your mortgage and never lose a race again!

Business Needs?

Finance business opportunities by quickly releasing equity from your existing property.

Facing Repossession?

Give yourself some more time to refinance by using a bridge.