Bridging Loans

How Bridging Loans Work

• Secured against both your existing property and the new one you're purchasing

• Uses the equity in your current home to help fund the new purchase before it sells

• Usually structured as short-term finance, commonly around six to twelve months, to allow time for your existing property to sell

• Generally costs more than a standard home loan, given the short-term nature and added risk for the lender

• Often converts to a standard loan once your existing property sells and the bridging debt is paid down

Is a Bridging Loan Actually the Right Fit?

Bridging finance solves a real problem, but it's not automatically the best option for every situation, the costs involved mean it's worth weighing up against alternatives, like negotiating a longer settlement, a subject-to-sale offer, or timing the sale and purchase closer together if possible.

I'll walk through your specific situation and give you a straight answer on whether bridging finance makes sense, rather than assuming it's the default solution.

Why Work With Me

I'll tell you if there's a better option. Bridging isn't right for everyone, and I'd rather point you toward the right structure than sell you a product that costs more than it needs to.

I understand the time pressure involved. Buying before selling often comes with a tight window, and I know how to move quickly when the situation calls for it.

You get me directly. Same person managing both the bridging finance and the transition to your standard loan once your existing property sells.

Common Questions

• How long does a bridging loan typically last? Usually around six months, though this depends on the lender and your specific circumstances enough time to allow your existing property to sell.

• What happens if my existing property doesn't sell in time? This is a genuine risk worth planning for. Depending on the lender and situation, there may be options to extend, but it's better to have a realistic sale timeline and a backup plan before committing to bridging finance.

• Is a bridging loan more expensive than a normal home loan? Generally, yes, the short-term nature and added complexity usually mean a higher rate than a standard loan. I'll factor this into whether it's genuinely worth it for your situation.

• Are there alternatives to a bridging loan? Sometimes, options like a longer settlement period, a subject-to-sale offer, or timing your sale and purchase closer together can avoid the need for bridging finance altogether. Worth discussing before assuming it's the only path.