What is a bridging loan?
Bridging loans are fast, short-term finance that’s secured against property or land with the intention of repaying the loan via a defined exit such as a sale or by refinancing onto long-term finance like a mortgage, for example.
Favoured by property developers, bridging finance is often used to quickly purchase properties that will be refurbished, converted or otherwise improved. They are best suited to light refurbishment projects; whereas heavy structural work or ground-up developments are better suited to another solution, development finance.
If you meet the following criteria then there’s a good chance there’s a funder out there for you:
- Good credit history
- Relevant experience
- Defined exit strategy
