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Commercial Bridging Loans Bridging Loans are often used for commercial reasons. Many developers may get a property cheap or at a discount. They then use the finance secured against the properties open market value. The developer then develops the property and may sell this on and repay the loan making a profit.

Business Bridging Loans Businesses have many uses for bridging finance. Often bridging finance is used for management buyouts.

Residential Bridging Loans The typical residential bridging loan will be someone who needs to sell their existing property before buying their next one. Instead of waiting for the sale to go through they get bridging loan secured on 1 or both properties to allow the purchase to go ahead.

Buying Property at Auction When buying property at auction typically you will need to complete on the purchase within 30 days. Traditional mortgages will generally take longer. Therefore with a sizeable deposit a bridging loan could be used instead and then remortgaged in the future on to a buy to let or residential mortgage.

Moving Home If you find you perfect house then often to buy it you will need to sell your existing home to provide enough funds to purchase the next one. However if the house has not sold a bridging loan can sometimes be used to bridge the gap until the old house is sold.

Stopping Repossessions Once a home-owner has missed many payments on a mortgage then the lender has the right to repossess. One way to stop this is if you have enough equity with a bridging loan to pay off the lender until a more suitable longer term lender can be found.

Commercial Development or Refurbishment In many cases developer find property which is discounted. However traditional lenders will not use them as suitable security due to the state they are in. In cases like this the developer could use a commercial bridging loan to buy the property develop it and then either sell it to repay the loan or remortgage it to a longer term more suitable mortgage.