Bridge Direct 0
Commercial bridge loans are a short-term finance solution, which as the name suggests, are used to ‘bridge the gap’ before a more secure, longer-term means of finance can be finalized. These types of bridge loans were used in property purchases that were time critical and involved a chain, meaning that an existing property needed to be sold to fund the acquisition of the new one. By taking out a bridging loan, the borrower could secure the funds temporarily against the capital held in the existing property allowing them to complete the new sale and await a buyer for the existing property. This also meant that the borrower could hold off on the sale until reasonable off came in, as opposed to having to lower their asking price or accept below market offers.