Bridging finance is usually a type of short-term loan. It’s best thought of as a temporary loan which gets you from A to B, until you can either clear the loan in full or secure a more permanent form of finance.

  • Terms are  typically 12 months or less. Terms can sometimes be longer on unregulated products
  • Rates available in the market are from 0.4%. A typical rate is between 0.75% and 1% per month
  • Payments can be made at exit or on a month to month basis. The preference generally is to retain the interest so its payable on the exit of the bridge

A bridging loan is often used for but not exhaustive:

  • Buy a property at auction 
  • Purchase a new residential property while the existing one is still on the market
  • Pay for renovation work 
  • Buy land for development
  • Purchase an uninhabitable property
  • Buy stock 
  • Pay for machinery or IT equipment