Bridging finance is a solution that aims to provide money to property investors quickly, while they wait to secure a more long-term solution.
Bridging finance, or a bridging loan, is a short-term loan solution which is secured against a property.
Typically, the property is renovated to maximise the value e.g a HMO conversion.
Once the renovation has been completed the property is re-financed, the capital is released to the owner, the bridging finance lender is repaid and the (first) charge is satisfied.
A bridging loan fills the time gap between a professional needing the money to secure a property and the time it takes to secure a long-term finance option from a traditional bank.