In fast-moving property transactions, timing is everything. Whether you’re buying at auction, funding a renovation, or facing a broken property chain, a bridging loan can offer the short-term solution you need.
At LTC Mortgages, we help clients across the UK understand and access bridging finance quickly and with confidence. Here’s everything you need to know.
What Is a Bridging Loan?
A bridging loan is a short-term loan designed to “bridge the gap” between buying a property and securing longer-term finance or selling an existing property.
Unlike traditional mortgages, bridging loans are designed for speed and flexibility. They are typically used when you need access to funds fast and only plan to borrow for a limited time—usually between 1 to 24 months.
Why Are Bridging Loans Used?
Bridging finance offers fast, flexible funding when time is of the essence. It can be particularly useful when you need to act quickly but don’t yet have access to traditional mortgage funds or sale proceeds from your current home.
With quick approvals and a range of exit strategies (e.g. selling a property or refinancing), bridging loans are often the go-to solution when conventional lenders can’t move fast enough.
When Are Bridging Loans Used?
Bridging loans are used in a range of time-sensitive situations, including:
✅ Buying Before Selling
Secure your next property even if your current home hasn’t sold yet.
✅ Auction Property Purchases
Meet tight completion deadlines—typically within 28 days—which is common for auction purchases.
✅ Property Renovations
Fund refurbishments or development projects before refinancing or putting the property back on the market.
✅ Broken Property Chains
Keep your transaction alive when a buyer pulls out or delays threaten your sale.
✅ Business Cashflow
Raise working capital by using property as security—ideal for businesses that need fast funding.
Key Features of a Bridging Loan
- Short-term borrowing: Usually between 1 to 24 months
- Quick access to funds: Approval and funding often happen within a few days
- Flexible repayment: Typically repaid through a property sale, refinance, or lump sum
- Higher interest rates: Reflect the short-term nature and increased lender risk
- Secured loans: Usually secured against residential, commercial, or investment property
Who Can Benefit from Bridging Finance?
Bridging loans are not just for property investors. They can benefit:
- Homebuyers in a chain
- Landlords and developers
- Auction buyers
- Self-employed professionals
- Business owners looking to release equity
If you’re in a situation where speed and flexibility are key, a bridging loan may be the right solution.
Need Fast Finance? Speak to LTC Mortgages
At LTC Mortgages, we work with trusted UK bridging lenders to secure competitive rates and fast decisions. Whether you’re buying at auction, renovating, or managing a property chain issue, we can help you act with confidence.
Contact us today for expert advice and a tailored quote:
Phone: 0151 662 0188
Email: [email protected]
Website: www.ltcmortgages.co.uk
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