Bridging Finance

Bridging finance is a short-term loan designed to cover an immediate funding need until longer-term finance is secured. It is commonly used in property transactions, such as purchasing a new home before selling an existing one, funding renovations, or enabling fast purchases – like auctions or below market value transactions – where speed is crucial.

Loans are typically secured against residential or commercial property, on a first or second charge basis, and can be arranged quickly. They usually carry higher interest rates and fees than traditional loans, reflecting their short-term nature and rapid access. Interest is often rolled up or retained, so borrowers do not need regular income to service the loan, with payment made on redemption. Rates may be fixed or variable.

Repayment is typically made through the sale of the property, refinancing, or receipt of anticipated funds. Over the past decade, the bridging finance market has expanded rapidly, offering a broader range of applications and increasingly competitive rates. Partnering with a broker ensures every opportunity is explored and the most suitable lender, one who shares your vision, is secured for your needs.