Frequently Asked Questions

Answer:

A bridging loan is a type of short term loan or interim financing secured against property for a term of up to 12 months.

Repayment or redemption of a bridging loan facility is usually via the sale of the property or by replacement via a long term mortgage.

Bridging finance in the UK can be offered on a non-status basis, i.e. the value of the property offered is the only security required. The lenders criteria does not require an income and previous credit history is usually no problem. This does not apply to banks where full-status loans are the normal requirement.

Costs of non-status bridging finance is higher than long term equivalent loans, this is a reflection of the additional risks associated with this type of lending.