A bridging loan is a short-term financing option designed to “bridge the gap” between an immediate need for funds and securing long-term financing or the sale of an asset.

Commonly used in property transactions, bridging loans allow buyers to complete a purchase before selling an existing property or to quickly access funds for urgent renovations or developments.

These loans typically range from a few months up to a year, providing a flexible way to secure quick capital when timing is crucial. With a bridging loan, you can move swiftly on time-sensitive opportunities without waiting for lengthy mortgage approvals. Frequently used for residential and commercial purchases, renovation projects, and property investments, bridging loans offer flexibility to homeowners, investors, and developers alike.

However, bridging loans often come with higher interest rates compared to standard loans due to their short-term nature and associated risks. They generally require a clear exit strategy, such as the sale of a property or securing long-term financing, to ensure repayment by the end of the term. Typically repaid within 6-12 months, bridging loans can be customised to suit specific needs, giving you confidence to achieve your property goals.

Some forms of Bridging Loans mortgages are not regulated by the Financial Conduct Authority.