Short-term finance when timing matters
Bridging loans can help you move quickly, whether you are buying before you sell, buying at auction or taking on a property that needs work.
What is a bridging loan?
A short-term loan, usually secured against property, designed to bridge a gap until a sale completes or longer-term finance is arranged.
Bridging can be a useful tool when timing matters, but it is usually more expensive than a standard mortgage and you need a clear plan for repaying it.
We will help you understand all of the costs involved and make sure you have a realistic exit plan before you commit.
When bridging finance can help
Buying before you sell
Secure your next home without waiting for your current one to sell.
Buying at auction
Meet tight auction completion deadlines that a standard mortgage may not.
Properties that need work
Buy a property that needs renovating before a standard mortgage is available.
Things to consider
- A clear exit plan, such as the sale of a property or a move onto a standard mortgage.
- All of the costs. Interest is usually charged monthly, and there may be arrangement, valuation, legal and exit fees.
- The term. Bridging loans usually last months, not years.
- Security. Bridging is secured against property, which may be repossessed if you do not keep up repayments.
Common questions
Cannot see your question? Ask us, there is no obligation.
Bridging loans are short-term, usually measured in months rather than years. The term will be agreed with the lender at the outset.
It is how you will repay the loan at the end of the term, for example from the sale of a property or by moving onto a standard mortgage. Lenders will want to see a realistic exit plan.
Bridging loans secured on a property that you or a close family member live in, or will live in, are usually regulated by the Financial Conduct Authority. Loans for business or investment purposes may not be regulated.