This funding solution lets you tap into equity in existing property as a down payment on future property purchase or development costs. If you can’t get a mortgage until your current property sells, this type of commercial property finance bridges that gap.

A bridging loan is intended to be a short-term solution to tide you over until long-term credit becomes available: expect to borrow for 12 - 36 months or fewer. Your chances of being accepted are higher if the long-term credit solution is already organised: if you know this date, you are eligible for a closed bridging loan. Otherwise, an open bridging loan gives you the flexibility to borrow without a fixed repayment date.

How Bridging Loans Work:

Certain high street lenders offer bridging loans and there are also several specialised bridging loan companies available. Typically, you can get bridging finance within a few days or even quicker in certain cases. Usually, you will be able to borrow up to 75% of the value of the property that the loan will be secured against, provided there is no other mortgage secured on it.

Tre C Srlus Servizi Finanziari look at affordability. They do not lend on the basis of income multiples but instead consider how much you can afford to repay regardless of whether or not you are paying interest. However, bear in mind that if you’re planning to repay the interest your income and outgoings are likely to be scrutinised more harshly.