Bridging Finance

What is Bridging Finance

A bridging loan or bridge loan is a short term loan given to ‘bridge the gap’ between you buying a new house and selling your previous house. Bridging loans can also be used as a short term loan to help you buy a property at auction, where you’ll need the money immediately but may not have sold your current property yet. They have lots of other uses too. They are generally secured on the assets in question and thus are not usually affordability related. The interest is rolled up and paid at the end (usually within 12 months) when the bridge is closed. This usually happens when either an asset or assets are sold, or when the bridging loan is repaid using more conventional finance.

Bridging Finance has many uses:

  • Chain breaks
  • Auction purchases
  • Investment purchases
  • Buy to let with nil valuation, full retention
  • Commercial lending
  • Downsizing
  • Conversions
  • Below market value transactions
  • Refurbishment/development loans
  • Non-status capital raising
  • Funding without monthly interest payments
  • Meeting tight deadlines


Here are Yorkshire Life Financial Services, we work with Bridging Finance specialists who can help you see if Bridging Finance is right for you, and then help you with an application through to completion. Get in touch if you’d like to know more.

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