A construction bridging loan is a specialist type of short-term loan that’s suitable for building developments and large-scale renovation projects. It is designed to cover the cost of initial property construction until standard finance can be arranged.

Construction bridging loans are useful for:

• Securing development land for a build
• Starting a project while a self-build or commercial development mortgage is arranged
• Covering a change in scope
• Covering a shortfall in development finance
• Funding another project while others are ongoing
• Covering unexpected expenses

The main benefit of a construction bridging loan is speed: you could have a decision in hours and the money within days.

If you’re in the middle of a fast-moving situation, that could be key!

Can I get a Construction Bridging Loan?

Construction bridging loans are available for anyone planning to build property for yourself or as a business. That includes property developers, construction companies and self-builders.

Bridging loans aren’t assessed in the same way that residential mortgages are. Rather than affordability and your credit score, lenders are more interested in your exit strategy and how you’ll make the payments to pay off the loan.

A typical exit strategy will be a standard residential or commercial mortgage, buy to let mortgage or other long-term finance.

As long as you can demonstrate that you can afford the loan repayments and have a solid exit strategy in place, you should be able to get a construction bridging loan.

GPS Financial has access to all the leading lenders, so your chances of being accepted can increase exponentially!