What are bridging loans?

Bridging loans are a short term funding option typically used by property buyers to ‘bridge’ the gap  when buying a new property and waiting for a traditional mortgage to be approved or  capital to be released from the sale of their current home.

Bridging Loans are most commonly used to help fund a new house purchase while you’re waiting for your existing property to sell.  But bridging loans can also be used for a variety reasons such as major structural home improvements and renovation projects. Bridging loans are also often used to help those looking to buy at auction where you have a short timeframe to exchange contracts.

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Frequently asked questions

Can I get a bridging loan on any property?

In principle yes, you can get a bridging loan on virtually any property

What percentage loan to value can I apply for?

Typically you fund up 60% of the property value with bridging loans. 

Can I get bridging loan for a property I’m buying at auction?

Yes. Bridging finance is often used to help buyers to meet the 28-day payment deadline included in most auctions and to bridge the gap until they can arrange a longer-term mortgage. We can help you with both.

Is a bridging loan always expensive?

As a short-term loan, you typically pay a little more for a bridging loan than a standard mortgage, but if you know where to go, it doesn’t have to be prohibitively expensive.

Is there a set time limit?

Bridging loans can’t exceed maximum time limits (12 months for a regulated bridging loan and 18 months for a non-regulated bridging loan) but can be paid off as soon as you have alternative finance in place.

Why John Charcol?

John Charcol are highly-experienced bridging loan brokers. When you come to us for mortgage advice, you can take advantage of the following benefits:

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