What is a bridging loan? Understanding short-term property finance

How does a bridging loan work and what types of properties can I borrow against it

Bridging loans offer you the required amount of funds for a fixed period, usually six to twenty-four months. It provides fast access to funds, typically secured against property as the security, and is often used when time is of the essence. You normally start to repay the loan once you’ve sold or arranged long-term financing. Interest rates on these types of loans tend to be higher, when compared to a regular mortgage. There are two main types bridging loans:

Closed bridging loan –   This is when there is a clear, mutually agreed, repayment date set – normally bound by contracts.

Open bridging loan – This is the more flexible option, when there isn’t a clear date set, often resulting in a higher interest rate compared to a closed loan.

In general, we can source secured funding for any & all types of property from residential, semi-commercial, commercial & land with & without planning. In the case of leasehold interests, lenders would require a minimum of 65 years unexpired on the lease at the end of the loan term to deem it adequate security.

How to get a bridging loan and decide if it’s right for your business

It’s important to understand how bridging finance works and whether its suitable for your business and its needs. The loans are typically offered by specialist lenders and require collateral – usually property or business assets. Before committing, there’s a few things you should ask yourself: Is the cost worth the speed? Bridging loans, be it open or closed, tend to be quite expensive due to the inflated interest rates and fees. But, if there is a high constraint with time, where your business would need expedited access to cash flow/capital - a bridging loan could be the best option. We specialise in exactly that, spearheading quick turnarounds, with access to the whole of market as well as family office & private lenders, we have supported several clients with extremely tight timelines & have tailored the funding solution according to each situation.

How to get a bridging loan quickly: what to expect and how long it takes

If you’re under pressure to access capital fast, here’s a few things you should prepare to be able get a bridging loan efficiently:

Prepare your exit strategy Here at Christie Finance, we want to see a clear plan for how you’ll repay this loan, this beneficial for us and the lenders. This could be through a plethora of things, selling a property, refinancing or using expected income - we would be assisting you with each step of the way

Get your documents in order Speed is everything with bridging finance. Having key documents ready, such as proof of ID, property details, business accounts (if applicable), and any existing finance arrangements can significantly reduce delays. We’ll help you understand exactly what’s needed and when.

Be clear on your timeline Lenders want to know how quickly you need the funds and why. Whether it’s to secure a property purchase, cover a short-term cash flow gap, or fund renovations, being upfront about your timeline helps us match you with the right lender who can move at the pace you need.

Work with a specialist broker Bridging loans are complex and time sensitive. Working with a broker like Christie Finance means you benefit from our market knowledge, lender relationships, and experience in structuring deals quickly and effectively.

At Christie Finance, we help clients understand the bridging finance meaning, navigate the application process, and secure funding tailored to their needs, whether it's for property purchases, renovations, or cash flow support. So, whether you're exploring what is bridging finance, how much can I borrow with a bridging loan, or what is a bridging loan mortgage, our team is here to help you move quickly and confidently.

Speak to Our Real Estate Finance Expert:

Ram Kakar  
Head of Real Estate
Email: Ram.Kakar@christiefinance.com
Mobile: +44 7764 241 349