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Closed Bridging Loans

A Closed Bridging Loan is the least risky form of bridging finance as the final completion date is known at outset. A Closed Bridging Loan can become necessary when the completion of the sale or purchase cannot take place on the same day either because of timing delays or perhaps because of refurbishment work that is required on the new property.

With closed bridging you will know the exact duration of the loan and the lender is secure in the knowledge that the bridging loan will be repaid from the proceeds of the sale of your existing property as contract have already been exchanged.

As the risks and costs will be known at outset most high street lenders will be prepared to offer closed bridging loan terms. The first “port of call” should be your own bank who will know you circumstances well. Once you have a quote from your bank it will be worth shopping around with other high street banks. It is unlikely that specialist bridging lenders will be needed unless there is something unusual about the properties.