Bridging Finance
Fast, flexible short-term finance to bridge the gap between buying and selling — or to fund property projects that need quick completion.
What is Bridging Finance?
Bridging finance is a short-term loan secured against property, designed to "bridge" a financial gap. It's typically used when you need funds quickly — for example, to complete a property purchase before your existing home has sold, or to fund a refurbishment project before refinancing onto a longer-term mortgage.
Bridging loans are usually arranged much faster than traditional mortgages — sometimes within days — making them ideal for time-sensitive transactions such as auction purchases or broken property chains.
Common Uses for Bridging Finance
Open vs Closed Bridging Loans
Closed Bridge
Has a fixed repayment date — typically used when you have exchanged contracts on a sale and know exactly when funds will be available.
- Lower interest rates
- Fixed repayment date
- Requires clear exit strategy
- Typically up to 12 months
Open Bridge
No fixed repayment date — more flexible but usually more expensive. Used when the exit route is less certain.
- More flexible terms
- Higher interest rates
- No fixed end date
- Usually up to 12–18 months
First Charge vs Second Charge Bridging
A first charge bridging loan is secured as the primary charge on a property — typically used when there is no existing mortgage. A second charge bridging loan sits behind an existing mortgage and is used when you need to raise funds against a property that already has a mortgage on it.
Second charge bridging loans typically carry higher interest rates due to the increased risk to the lender. Our advisers will explain which type is appropriate for your situation.
Key Features of Bridging Finance
Important Information
Bridging finance is a short-term solution and should be used carefully. Your property may be repossessed if you do not keep up repayments. Always ensure you have a clear exit strategy before taking out a bridging loan. Interest rates are typically higher than standard mortgages.
Need Fast Property Finance?
Speak to our bridging finance specialists today for a fast, no-obligation quote.