A bridging loan is used as a short-term finance option until long-term financing can be arranged. These types of loans are secured against your property or properties and can be used for the following reasons:

• Property refurbishment
• When buying a property at auction
• Consolidating debt

Bank of Scotland offer bridging loans with attractive rates and repayment options. They provide bridging loans on an interest-only basis with this you have two options of depositing an advance payment to cover the interest or make monthly payments. However, you will still be required to complete full payment of the loan on the agreed date.

These types of loans are attractive because of the potential to secure a high Loan to Value. In some cases, you may be able to get up to 85% of your property value.

If you are bridging the gap between a property purchase and selling your current property the money will be paid back on the completion of your current property. However, if this is not the reason you are using the loan for you will need to provide Bank of Scotland with a clear plan on how you intend to repay the loan at the end of the term.

To be eligible for a Bank of Scotland bridging loan you are required to have had your mortgage for at least 6 months.