Practical guide
Bridging Finance — When and How Investors Use It
Bridging finance is a short-term loan used to "bridge" a gap between a purchase and a long-term exit (like a sale or refinance).
Typical Use Cases
- •Auctions: Speed of completion (usually 28 days).
- •Refurbishment: Properties that aren't currently mortgageable.
- •Quick Wins: Securing a deal before others can move.
- •Chain Breaks: Completing a purchase before your sale finishes.
What Brokers Need From You
- •Deposit: Usually 25-35% of the purchase price.
- •Exit Strategy: Proof of how you'll pay it back (sale or refinance).
- •Experience: Details of previous successful projects.
- •Valuation: Access to the property for an inspection.
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More guides
- R2SA: Rent-to-Serviced Accommodation
- HMO: House in Multiple Occupation
- BRRR: Buy, Refurbish, Rent, Refinance
- BTL: Buy-to-Let
- JVs: Joint Ventures
- Due Diligence Checklist
- Sourcer Fees — What's Normal?
- Choosing a Management Company
- Choosing a Property Insurance Broker
- Working with Developers & Capital Raisers
- Choosing a Property Solicitor or Conveyancer
- Why You Need a Property Accountant
- Buying Property at Auction — What Investors Need to Know