What is a Bridging Loan?

Bridging Loans in a nutshell:

  • The Problem: A shortfall in capital where more money is needed very quickly, but only for a short period of time. 
  • The Opportunity: Any property owner (commercial or residential)  can use the property as a form of security
  • The Solution: Borrow up to 70% of the value of the property as a short term loan to bridge the capital shortfall: In other words, a bridging loan
  • Why West One Loans? Our speed of decision making and deployment of bridging loans has become an industry benchmark.  As the recognised industry monitor following the creation of the West One Loans Bridging Index, we provide detailed and reliable views of the market at any given time.

What is a bridging loan?

A Bridging loan is an interest only, short term loan secured on land or property. It is designed to be short term and is generally taken out for up to a year. However, it is not uncommon for some loans to last two years.  It is designed to free up fast funding for anyone who owns either residential or commercial property. 

Why is it more popular than ever?

Bridging Loans are actually a revival of a more traditional style of loan open to anyone who owns property.  They are based on the actual value of the property, rather than increasingly spurious personal credit ratings or history.  Navigating banking bureaucracy to obtain a vital loan could take months, and  quite literally dash any hope of getting funding through in a time sensitive situation. A bridging loan on the other hand, can in most cases, be completed in a matter of days, and in some cases in as little as 48 hours! Following the banks’ reluctance to loan money, bridging loans provide a simple, solid and dependable means of securing much needed short term funding.

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