Bridging loans are a temporary short-term loan, intended to be used to ‘bridge’ a gap in finances when purchasing a property.

They are often used to purchase a property while waiting for the sale of another to complete. For example, a residential buyer may use a bridging loan to secure a deal on a preferred property while their existing home is sold. A bridge loan could also be used when buying a property at auction, where the deal would need to completed almost immediately. They can also be used when buying a property to renovate and sell on.

Bridging Loans are considered a specialist but flexible finance option and for this reason, are often used for commercial property refinancing. Because a Bridge Loan is only intended to bridge a gap in available finance they are typically provided at higher interest rates than longer-term mortgages. The term of the loan is typically 2-12 months but can range to a couple of years. During the agreed term the loan is secured against the equity in the property.

No matter what the purpose of the loan, bridging offers a wide range of personal and business financial solutions.


The Financial Conduct Authority does not regulate some aspects of commercial mortgages