
What is a bridging loan?
A bridging loan is a short term loan that can be used to bridge the gap between the quick requirement for finance, and the time it takes to arrange longer-term finance options. Speed is the primary benefit of bridging loans, with lenders typically asking for the loan to be repaid within 12 months. However, there may be an opportunity to extend the repayment to 18 months with certain lenders.
Bad credit bridging finance is typically used to clear a mortgage or to buy a residential or commercial property while a mortgage is being arranged. If you’re considering a bridging loan as a method of resolving financial difficulties, it is essential you seek the advice of a professional bridging loan advisor as there can be more affordable funding options available.