What is residential bridging?

A residential bridging loan is a short term loan secured on residential property. It is designed to bridge a gap in funding, for example breaking a chain when a sale falls through, buying a new home before your existing one is sold, refurbishing a property before taking out a mortgage, or meeting a tight completion deadline.

How it works

Bridging loans normally run for months rather than years, often up to twelve months. Interest can usually be rolled up or retained, so there are no monthly payments and the interest is repaid with the loan. Lending decisions are led by the property and by a credible exit, usually a sale or a refinance onto a mortgage.

Regulation

Where a bridging loan is secured on your home, or on a property you or a close family member will live in, it is a regulated mortgage contract and Financial Conduct Authority rules apply. Loans secured purely on investment property are usually not regulated.

Expert advice

SM Finance’s specialist team will take the time to understand your plans and approach the lenders best placed to support them, from high street banks to specialist funders. Call us on 020 4511 9511 to discuss your requirements.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other loan secured on it.