What is it?

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 that, without such funding, wouldn’t 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) typically from £30k to £50m with terms from 1-18 months.

• Property purchase – Your purchase needs to complete before your sale
• Speed – They can potentially be arranged in as little as two weeks
• Raise finance for property investment or property development
• Buy-to-Let
• Range of interest options with no exit fees (in most cases)