Bridging Finance

Bridging finance (also known as a bridging loan) is a short-term finance option where a sum of money is lent solely for the purpose of paying a debt until longer-term finance, such as a mortgage or funds from another source (such as the sale of a property or receipt of inheritance) becomes available, thus ‘bridging a gap’.

They are always secured on property or land and are widely used to facilitate property purchases which, without such funding, would not be possible. One of the most important factors in getting a bridging loan agreed is to make sure a solid repayment method is already in place when it is applied for.

Why choose it?

  • Short term finance required for a variety of different reasons (such as a tax bill)
  • Property purchase – the purchase needs to complete before a sale
  • Property Investment where a transaction is needed at speed
  • Clients requiring short-term cash flow
  • Purchasing a refurbishment property that is deemed unsuitable for a mortgage
  • Downsizing and releasing equity for completion
  • Purchase of an ‘under market value’ property
  • Auction property

Criteria

  • Borrow from £30k to £50m
  • Terms from 1-18 months
  • Up to 100% LTV available (subject to additional security)
  • Range of interest options
  • No exit fees (in most cases)

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