Bridging Finance

 Bridging finance, often referred to as a bridging loan, serves as a short-term financial solution to bridge the gap between purchasing a property and securing permanent financing or completing a property sale. Typically taken over a 12-month period, these loans often come without early repayment charges, except potentially for the first three months of interest. Interest payments are commonly ‘rolled up,’ meaning they are added to the loan amount and repaid at the end of the term. Lenders primarily assess the value of the secured properties and the proposed repayment method, ensuring a viable exit strategy, such as property sale or remortgage. Bridging finance is ideal for acquiring new properties while awaiting the sale of existing ones or for purchasing and refurbishing properties that are not mortgage-ready.