Bridging Loans

A bridging loan can be ideal if you need a short-term cash solution, for example if you’ve purchased a property at an auction and you need to complete the purchase urgently, or when you’re about to exchange contracts on a new house when your buyer drops out at the last minute.

However it’s sensible to exercise caution.  If you were to proceed with a bridging loan, then you need to calculate how long you can maintain what may effectively be a mortgage-sized debt.  If you’re considering bridging as a strategy to avoid breaking your house moving chain, then you need to think about this very carefully and you should seek professional advice.

The bridging loan market is very small, and although there are a few lenders who specialise in such short-term loans, you’re unlikely to get a bridging loan as cheaply as a mortgage or secured loans.