What is a bridging loan and when should I use one?

A bridging loan is short-term funding, secured against property, designed to solve a timing problem. It moves far faster than a standard mortgage, which is the whole point, and you repay it once your longer-term finance or a sale comes through.

Typical uses:

• Buying at auction, where you must complete in a matter of weeks.
• Funding a refurbishment before refinancing or selling the property.
• Breaking a chain, so you can secure a new property before an existing one sells.
• Bridging to a mortgage, where you need the property now and the long-term facility follows.

Because it is short term and fast, a bridging loan is priced higher than a mortgage. That is not a catch, it is the cost of speed and flexibility, and it is fine as long as the sums work over the short period you hold it.

The single most important thing with bridging is the exit, meaning how you will repay it, whether by refinancing onto a mortgage or selling. A clear, credible exit is what makes a bridge sensible rather than risky. We will pressure-test that with you before arranging anything, and compare lenders on rate, fees and terms.