🔗 What Is a Bridging Loan?
- loisholder74
- Apr 23
- 2 min read
A Simple Guide for Homebuyers and Property Investors
Buying a property can be a smooth process—until a delay or timing issue gets in the way. That’s where bridging loans come in.
At Keyholder Mortgages, we often get asked: “What exactly is a bridging loan, and when would I need one?” Here’s a quick and simple breakdown.
🏡 What Is a Bridging Loan?
A bridging loan is a short-term loan designed to “bridge the gap” between two financial transactions—usually when you’re buying a new property before selling your current one.
Think of it as a temporary financial solution that helps you move forward quickly, without waiting for everything else to fall into place.
✅ When Would You Use a Bridging Loan?
Bridging loans are commonly used when:
1. You’re Buying Before Selling
You’ve found your dream home—but haven’t sold your current one yet. A bridging loan gives you the cash to complete the purchase, while you wait for your sale to go through.
2. You’re Buying at Auction
Auction purchases usually require full payment within 28 days. A mortgage won’t move that fast—but a bridging loan can.
3. You’re Doing a Refurb or Flip
If you're buying a property that’s unmortgageable (e.g., no kitchen or bathroom), a bridging loan lets you buy it, fix it up, and refinance later.
4. There’s a Broken Chain
If your buyer pulls out last minute, a bridging loan can keep your move on track while you find a new one.
⏳ How Long Does It Last?
Bridging loans are short-term—typically between 1 and 18 months. They’re designed to be repaid once you:
Sell a property
Secure long-term finance (like a mortgage)
Or refinance once renovation work is done
💰 Are They Expensive?
They usually have higher interest rates than regular mortgages, because they’re short-term and more flexible. But they can save you thousands by helping you avoid delays, missed deals, or chain collapses.
That said, they’re not for everyone. It’s vital to get advice and know exactly how you’ll repay the loan before committing.
📍 Should You Use One?
Bridging loans can be a powerful tool if used in the right way—and with the right guidance. They’re popular with:
Home movers stuck in a chain
Auction buyers
Landlords and developers
Homeowners doing major renovation work
At Keyholder Mortgages, we’ll help you decide whether a bridging loan is suitable for your situation and find the best deal available.
👋 Need to Move Quickly?
If time is tight and you need to act fast, we’re here to help you understand your options and move forward with confidence.
📞 Call us: 07867728632 📧 Email: lois@keyholdermortgages.co.uk 🌐 Visit us: https://keyholdermortgages.co.uk
A downloadable guide is here for you!
You can download it here:
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