What is Bridging Finance?

• Bridging loans are interest only loans used when a relatively large amount of money is required for a short period of time and with the minimum amount of fuss. Bridging loans are secured to your assets in the same manner as with traditional mortgages or secured loans.
• Bridging loans are often used to purchase a property or building plot. A common scenario is where a client is moving house and a new property is being purchased but the sale of a current property, albeit imminent, has yet to complete. Bridging loans can also be used for many different reasons and in particular as a short term method of debt consolidation or to raise business finance etc.

Who would qualify for bridging finance loans?

• Clients who can or cannot prove income.
• Clients with an excellent or impaired credit rating.
• Clients who are employed, self employed or retired.
• Companies for commercial bridging finance or individuals for bridge loans. Personal guarantees from directors are usually but not always required when lending to a limited company.

There are two types of bridging finance - the first of which is an "open" bridge. This can be used for example when clients have found their dream property but have yet to sell their existing property. Equity is usually needed in both properties for this type of finance to be available. A "closed" bridging loan is for those who have already sold their existing property and are waiting for completion. This is not as risky for the lender as the sale is less likely to fall through once it gets to this stage.