Bridging finance

The mortgage market is increasingly diverse and often confusing. It can be tricky to keep up to date with the ever-changing regulation and the multitude of options available.

Bridging loans are a short-term funding option. They are used to ‘bridge’ a gap between a debt coming due or until either longer-term finance can be arranged or the property is sold in order to repay the loan. They can also simply act as a short-term loan in pressing circumstances.

It is important to remember that bridging loans are a short-term finance method; they should not be taken out for long periods.

Unlike other secured loans and mortgages, a bridging loan can be set up quickly and can be secured against property that would normally be considered unsuitable security for many lenders.

Closed bridging

The borrower has a set date when the loan will be repaid. For example, the borrower has already exchanged to sell a property and the completion date has been fixed. The sale of that property will repay the bridging loan.

Open bridging

This is when the borrower sets out a proposed exit plan to repay their loan but there is no definitive date at the outset; there will be a clear cut-off point.

A bridging loan is a short term loan that can be used by businesses or individuals for any purpose until permanent funding, or their next stage of financing becomes available, or they sell a property to repay the debt.

As a short-term method of finance they have advantages over other funding methods as they can be used, for example, to:

  • be used to purchase a property that is in a poor state of repair and therefore unsuitable security for most lenders
  • develop or refurbish a property in preparation for a sale in the near-term
  • bridge a chain break – a property sale has fallen through and you still wish to continue purchasing another property
  • effect a non-simultaneous purchase – securing a property purchase until your existing property is sold
  • purchase properties at auction
  • lease extensions

Other advantages of bridging finance, for example:

  • there are no monthly payments – interest charges & set up costs can be added into the bridge loan for the full term and paid when the loan is redeemed
  • income proof and affordability calculations are not a limiting factor if interest is added to the facility
  • a poor credit history is ignored by many bridging lenders
  • fewer age restrictions
  • many facilities do not have exit or redemption fees

There are many lenders offering bridging finance, making rates extremely competitive. Bridging lenders can come in all shapes and sizes, ranging from one-man bands to professional outfits regulated by the Financial Conduct Authority (FCA) – such an array of choice can be confusing – Roxburgh’s team of advisers are here to help.

A bridging loan is a loan secured against your property, your property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. 


To discuss your bridging and mortgage requirements in more depth please contact us by phone on 0345 434 9505, or email by clicking here


Six reasons to use us

1. We put our client’s needs above all else

2. We offer a comprehensive range of mortgages from across the market which lenders make available to mortgage intermediaries

3. We understand how important these decisions are for you

4. We will communicate with you in plain English with no jargon

5. Our advice is tailored to your demands and needs

6. Our advice will leave you in an informed position to make the right choices

You may also be interested in:

  • Residential mortgages
  • Buy-to-let and let-to-buy mortgages