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. The amount you are able to borrow will be dependent on the value of any properties you are willing to put up for collateral.

Lloyd’s bank offer two types of bridging loans, these are called ‘open’ and ‘closed’ bridging loans. A closed bridging loan is more commonly used as they can be sure that they will receive the loaned amount back on a specific date that is agreed when your bridging loan is obtained. A closed bridging loan is perfect for anyone who already has a buyer for their current home but need to acquire funds fast to purchase a new home.

On the other hand, an open bridging loan is more difficult to be approved for although possible providing your property has the required value to cover the loan amount. The open bridging loan is most common with people who are looking to purchase another home without a buyer on their current one.

Repayments on Lloyds bridging loans used for purchasing property are made when the sale on your current home is completed.

They are not only able to provide these loans for purchasing a new home or commercial property but they can be used for almost anything including:

• Property refurbishment
• When buying a property at auction
• Consolidating debt
• Capital raising for business
• Or funding for short-term cash flow problems