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Bridging Loans
Seamlessly bridge financial gaps with short-term, flexible bridging loans
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Here's How They Work
Property Purchase
Bridging loans are often used when a homeowner wishes to buy a new property but has not yet sold their existing one. It’s a temporary solution to secure the new property before the sale is completed.
Short-Term Loan
These loans are short-term loans, usually with terms ranging from a few weeks to a few months. They are designed to provide fast access to funds to enable a seamless transition.
High-Interest Rates
Bridging loans typically come with higher interest rates compared to traditional mortgages because of their short-term nature and the relatively higher risk associated with them.
Security
The property being purchased or the property being sold (or both) is often used as collateral for the bridging loan, this also provides security for the lender or provider.
Exit Strategy
Borrowers are expected to have a clear exit strategy, which means they should have a plan in place to repay the bridging loan once their existing property is sold as swiftly as possible.
Helping your transition between homes as smooth as possible
Bridging loans are a flexible financing option that can help homeowners and property investors secure a new property quickly. They are also used in scenarios such as property development or buying at auction, where funds are needed urgently.
However, they come with higher costs due to the short-term nature and are best suited for those who have a clear plan for repayment.
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Understanding when a bridging loan makes sense
Bridging loans are ideal in situations where timing is critical. If you’ve found the right property but are still waiting for your current home to sell, a bridging loan gives you the freedom to move forward without losing out. They’re also commonly used by buyers at property auctions, where completion deadlines are tight and traditional mortgages simply aren’t fast enough. Developers and investors often rely on bridging finance to refurbish properties quickly before refinancing or selling on.
This type of loan is all about speed, flexibility, and opportunity. Lenders can assess and release funds much faster than standard mortgage providers, allowing you to act decisively when a valuable opportunity arises. Whether you’re upgrading your main residence or expanding your property portfolio, bridging finance can be a powerful tool—provided it aligns with your timeframes and repayment plan.
Key considerations before choosing bridging finance
Although bridging loans offer speed and convenience, they require careful planning to ensure they fit your financial situation. Because interest rates are higher than standard borrowing, you should have a strong understanding of your monthly costs, your exit strategy, and how long you realistically need the finance. Most borrowers expect to repay the loan once their current property sells or when long-term financing, such as a traditional mortgage, is secured.
It’s also important to consider the property being used as security. Lenders will review its value, saleability, and overall condition before approving the loan. Professional advice can help you weigh up the benefits and risks, ensuring bridging finance supports your goals rather than creating additional pressure. With proper planning, it can be one of the most effective tools for navigating tight timelines and competitive buying scenarios.
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Contact our friendly mortgage advice team today. Sound mortgage advice from the experts at GoMortgage.
Author: Chris Days - Gomortgage
- 5 Mins
- Updated: Nov 17th 2025
Frequently Asked Questions
How quickly can a bridging loan be arranged?
Bridging finance is designed for speed. Depending on the lender, funds can often be released within 5–14 days, sometimes even sooner if all documents and valuations are in place.
Do I need to make monthly repayments on a bridging loan?
Not necessarily. Many bridging loans allow for rolled-up interest, meaning the interest accrues and is repaid at the end of the term as part of your exit strategy. Some lenders also offer monthly repayment options.
Can I get a bridging loan if my property hasn’t sold yet?
Yes — this is one of the most common reasons people use bridging finance. The expected sale of your existing property often forms part of your exit strategy.
What happens if my property doesn’t sell in time?
If the sale is delayed, you may need to request an extension or refinance onto another product, such as a long-term mortgage. It’s essential to plan ahead and maintain communication with your lender.
Do I need excellent credit to qualify?
Not always. While good credit helps, many lenders in the bridging market accept applicants with imperfect credit, provided there is sufficient security and a clear repayment plan.
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Speak With A Mortgage Advisor today
Contact our friendly mortgage advice team today. Sound mortgage advice from the experts at GoMortgage.
