Typically bridging loans spring to mind when there is urgency, such as for an auction purchase or to pay a liability that’s due. However, bridging finance isn’t just about speed or problem-avoidance, it is about financing an opportunity that is otherwise not possible with traditional finance and where there is an exit strategy to repay the loan in the short-term.

Consumers will typically use bridging finance to ‘chain-break’ – to purchase a new main residence ahead of selling their existing one. In this scenario, the exit strategy is usually the sale of the existing residence.

Property developers might use a bridge to acquire land without planning and repay using development finance once planning has been obtained. A ‘development-exit’ bridge may also be used to repay development finance to allow a longer sales period to sell completed units.

Speak to the experts – we can advise on how best to structure your loan and therefore achieve the best rate.