Bridging Finance FAQs
Find answers to common questions about bridging finance, short-term lending, costs and how these loans are used for property purchases, development and refinancing.
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What is a bridging loan?
A bridging loan is a short-term finance solution used to “bridge” a gap, often when buying a property quickly, funding refurbishment, or waiting for longer-term finance or a property sale to complete. -
How is interest calculated on a bridging loan?
Bridging loan interest is usually charged monthly rather than annually. It can be paid monthly, rolled up, or retained, depending on the lender and the structure of the loan. -
What can bridging finance be used for?
Bridging loans are commonly used for auction purchases, property refurbishment, chain breaks, development funding, or to release capital quickly from an existing property. -
How long can I have a bridging loan for?
Most bridging loans are short-term, typically ranging from a few months up to 12–18 months, depending on the lender and your exit strategy. -
What is an exit strategy in bridging finance?
An exit strategy is how you plan to repay the loan, such as selling the property, refinancing onto a standard mortgage, or using other funds. Lenders require a clear and realistic exit plan before approving a loan.
