Bridging Loans
Fast, flexible short-term financing to bridge your property transactions
What is a Bridging Loan?
A bridging loan is a short-term, secured loan used to cover a temporary financial gap, most often to "bridge" the time between buying a new property before selling an existing one. These loans are typically secured against an asset like property, and because they are arranged quickly, they can be more expensive than long-term loans. They are used when speed is essential and funds are needed to complete a transaction.
How They Work
Secured against an asset
You must use a high-value asset, like a house, as collateral. The loan is secured against this asset with a first or second charge.
Interest-only
Bridging loans are interest-only, meaning the principal is not paid down during the term.
Repayment
Interest can be paid monthly or deferred until the end of the loan term.
Clear exit strategy
You must have a clear plan for how you will repay the loan, such as the sale of the property or another permanent financial arrangement.
Common Uses
Buying a new home
A homeowner can use a bridging loan to buy a new property before their current home is sold.
Property development
To finance property development projects or renovations.
Auction purchases
To quickly fund a property purchased at an auction with a tight deadline.
Business purposes
Businesses may use them for large purchases, renovations, or bridging a gap in working capital.