A bridging loan is a short term finance option, typically of 12 months or less, used by property owners to help fund the purchase of another property when their funds are temporarily tied up elsewhere, for example, in another property or investment.
Bridging loans ‘bridge’ the gap between the purchase of one property and the sale of another or the disposal of an asset. A bridging loan may help if you are purchasing a new property and need to complete before you have secured a buyer for your own home.
There are two types of bridging loan:
Open Bridge: This is where there is no specific date by which the loan will be repaid. Most bridging loans are open. These are typically taken by borrowers who want to purchase a property before they have secured a buyer for their current property and do not yet know when the sale will take place.
Closed Bridge: This is where the date the bridging loan will be repaid is known at the beginning of the loan period. These are typically very short-term loans and occur when the sale date of another property is already agreed, but there is a need to purchase the new property earlier.
We provide bridging loans for borrowers who require a longer-term mortgage on the property being purchased. For details of our bridging loan products, please call us on 01228 403141 or book an appointment online at your nearest branch.
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