What is a Bridge Loan?
A bridge loan, or bridging loan, is a type of short-term funding used to finance the gap between a purchase & waiting for your longer-term source of funds.
For example, if you’re looking to purchase a property & require immediate funds whilst waiting for your existing property to be sold, a “bridging loan” can ensure the purchase can go through prior to your property sale.
Bridging loans can be used for a variety of reasons including:
- Residential purchase / fixing a broken property chain / securing a property purchased at auction
- Commercial development / refurbishment / renovations / investment
- HMRC bill payment
- Debt consolidation
- Farming / agricultural purchases & development