Bridging Loans

What is Bridging Finance

Bridging loans are a form of fast, flexible, short-term lending, usually for 12 months or less. This can be used by individuals or businesses. The loan can be used to “bridge” the gap in finances until either a long-term financing solution can be put in place or alternative funds are received from another source, for example the sale of a property.

We usually find most clients need bridging for, auction purchases, land purchases with no planning, chain break situations, property refurbishments or a fast property purchase. 

A bridge loan uses the equity in property as security for a borrowing facility. Unlike other secured loans and mortgages, a bridge loan can be set up quickly and can make use of property that would normally be considered unsuitable security for many lenders.  

Typical key features of bridging are:

* Up to 75% Loan granted to the value of security 

* Minimum loan size: £25,000

* No maximum loan size

* Minimum term – 1 month term

* Maximum term – 24 months term (12 months regulated)

* No upfront fees

* First and second charge

* No age restrictions and not based on income

* Product Availability in England and Wales

* Straightforward, transparent & quick