A bridging loan is a short-term, property-backed loan designed to bridge a financial gap. They're most commonly used when funds are needed quickly, before a longer-term solution such as a mortgage or property sale is in place.

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Common situations where a bridging loan might be considered include:

• Buying a new property before an existing one has sold

• Purchasing at auction, where completion is required within a tight timeframe

• Funding a property that isn't currently mortgageable, such as one requiring significant renovation

• Breaking a chain where a transaction has fallen through

 

Bridging loans are typically available for terms of one to twenty-four months. Interest is usually rolled up and repaid in full at the end of the term rather than paid monthly, which means the overall cost needs to be factored in carefully against your exit strategy.

 

Bridging finance is a specialist area and the products available vary considerably. We don't advise on bridging loans directly, but we work with specialist brokers in this area and can refer you to the right person for your situation.

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​We do not offer advice on Bridging Loans, but would be happy to recommend a specialist of which you could seek advice from.