Category: Bridging Loans

A commercial mortgage can help a business buy, refinance or raise funds against commercial property. Lenders usually assess the business, property, deposit, income, accounts and repayment ability before deciding.

An exit strategy is how you plan to repay a bridging loan. It is one of the most important parts of any bridging application. Common exits include selling the property, remortgaging onto a standard mortgage, or moving onto longer-term finance.

A bridging loan is a short-term secured loan designed to “bridge” a financial gap, often used when buying a property before selling another, purchasing at auction, or funding refurbishment. It is typically repaid within 6- 12 months, although some terms can be longer depending on the lender and circumstances.

A bridging loan is commonly used for auction property purchases because auction buyers often need to complete quickly, usually within 28 days. Bridging finance can provide short-term funding to secure the property, with repayment often through sale or remortgage once the property is ready.