Closed Bridging Loans

This may be used when longer term finance has already been arranged but the funds cannot be drawn down ie. In the case of a house sale and purchase when a mortgage offer has been obtained – the seller requires you to exchange contracts on the new purchase prior to the sale of your property and your mortgage offer will not permit the purchase without the sale of your property.

In this circumstance finance is required at short notice and provided on the basis that when the existing property is sold it will be used to repay the closed bridging loan. The lender would normally secure the bridging loan on the existing property to be sold and may not require proof of income just confirmation of how and when the loan will be repaid.

Closed Bridging is a less risky option than “Open Bridging“.