What is a Bridging Loan?

A bridging loan is a short term loan secured on property by way of either a first or second mortgage.

Bridging loans are usually seen as a temporary way to ‘bridge’ cash shortfalls when waiting for other finance to come through.

Bridging loans can be used for a number of reasons:

• Purchase of a new property before an existing property has sold
• Residential or commercial property
• Buying property for improvement or renovation and then resale
• Buying property at auction
• Complete purchase of an overseas property
• Capital raising

A bridging loan is usually for a period of between and 12 months, however a longer term may be justified under certain circumstances.

Please note that Bridging Loans secured on Commercial or Buy-to-Let property are not regulated by the Financial Conduct Authority.

How can The Select Partnership help?

At The Select Partnership we have the facilities in place to give you expert advice on your bridging loan.