Bridging finance is for companies and property developers requiring funds to purchase land or existing development sites for future development.

How does a bridging loan work?

• Commercial bridging is short-term finance required for a specific reason or project when other finance is not available.

• It’s often used by property developers who need funds to complete a short-term building project and have a clear exit strategy, such as selling the property or refinancing into a long-term commercial mortgage.

• Bridging finance is also used by people buying properties from auction, who are required to complete the purchase within a short time (usually 28 days) of the auction.

• Loan terms are usually 3–12 months, sometimes up to 24 months. 

• Capital and interest is usually rolled up into a single repayment once the property has been refinanced or sold.