Bridging Finance

A bridging loan is usually short-term borrowing used as a way to bridge a gap in funding until your house sale – or other transaction – goes through. Bridging loans can be used if you buy a property at auction and you need the cash immediately but haven’t yet sold your current home.

Be mindful that like other types of secured loan, a bridging loan will be secured on your property meaning if you struggle to keep up with repayments you home could be at risk.

When a bridging loan might be appropriate, you may need to borrow money quickly to secure a house at auction when a mortgage will take too long to come through, Bridging loans are often used to cover renovation costs until it’s possible to remortgage to release equity for the project or If you’re building your own home a bridging loan could help cover the cost of buying the land and the building work, while you apply for a mortgage. Whether a bridging loan is the right choice for you will depend on your personal, financial situation and what you’re looking for when it comes to borrowing.

A bridging loan may suit you if you’re looking for a short-term loan for a large sum of money that you’ll be able to pay back quickly. An example of this would be if you were trying to buy a new property before you’d sold your current home – and would then be able to pay back the loan quickly once your house sale went through.