Bridging Loans

What can a bridging loan be used for?​

  • Buying property at an auction
  • Property Development
  • Renovating & Refurbishing
  • Buying a new home
  • Businesses requiring Cash Flow to pay VAT or stock
  • Financing Repossessions
  • Buying a derelict or uninhabitable properties

Why bridging loans?

The speed in which the borrower can access the capital from the bridging lender. In certain instances, a deal can be structured within hours if the borrower has the correct information at hand, but in most cases, it takes between 2 to 4 weeks. When quick finance is needed to buy property, they are the perfect solution.

Bridging loans are much faster compared to a standard mortgage, so can be a great alternative and a preferred method for those that need immediate access to capital.

Types of bridging loans: closed or open?

  1. Closed Loan: comes with a fixed repayment date and you will normally be given this kind of loan if you have exchanged contracts but are waiting for a property sale to complete.
  2. Open loan: does not have a fixed repayment date, but you will normally be expected to pay it off within one year.

A Bridging Loan is a short-term loan secured against your home or property. We can introduce you to an Independent Mortgage Broker who is experienced in dealing with bridging loans and can support you through the whole process.