A bridging loan is a short-term financing option designed to “bridge the gap” between the purchase of a new property and the sale of an existing one, or to provide fast funding for investment opportunities. In the UK, bridging loans are typically secured against property or land and are popular with buyers, landlords, developers, and investors who need speed and flexibility.
Common scenarios where a bridging loan is effective include:
Chain Breaks – Purchasing a new home before selling your existing one.
Auction Purchases – Fast completions within 28 days, often requiring quick cash access.
Refurbishment or Development – Funding renovations or conversions prior to arranging long-term finance.
Buy-to-Let Investors – Acquiring properties quickly to secure competitive yields.
Short-Term Cashflow Solutions – Covering tax bills or business needs, secured against property assets.
Fraser Bond works with investors, landlords, and developers to assess whether bridging finance is the right route.
Speed – Approvals and drawdowns can be completed in days.
Flexibility – Can cover residential, commercial, or mixed-use property.
Access to Opportunities – Enables participation in auctions or off-market deals.
Tailored Repayment – Options for interest roll-up or retained payments.
Higher Costs – Interest rates and fees are higher than standard mortgages.
Short-Term Only – Typically from 3 to 24 months; not a substitute for long-term finance.
Exit Strategy Required – You must demonstrate how the loan will be repaid (e.g. sale of a property or refinancing).
Valuation & Legal Fees – These must be factored into your cost planning.
Fraser Bond advises clients to carefully weigh bridging finance against alternatives, ensuring compliance and long-term value protection.
Fraser Bond provides independent advice on property finance, including:
Assessing Suitability – Whether bridging finance fits your specific purchase or investment plan.
Connecting with Lenders – Access to trusted UK bridging lenders and private finance providers.
Structuring Exits – Planning for mortgage refinancing or resale to repay the facility.
Investor Support – Bridging finance modelling as part of wider investment advisory.
For tailored guidance and access to property listings where bridging loans can be applied strategically, visit FraserBond.com.
