3. What can a bridging loan be used for?
A bridging loan can be used for many business-related purposes: buying property at auction, chain breaks, raising capital, refinancing, paying tax bills, funding refurbishments, or exiting development projects. As long as the use is non-regulated and business-related, bridging may be a solution.
4. Do I need good credit to get bridging finance?
Not necessarily. While lenders may check credit history, bridging finance is primarily based on the property and exit strategy. Even borrowers with poor or limited credit may be eligible—especially if there’s strong security or a clear repayment plan.
5. What’s the difference between first charge and second charge bridging loans?
A first charge bridging loan is the primary loan secured against a property. A second charge sits behind an existing mortgage or loan and typically offers smaller amounts but with faster approvals. Both can be used for business purposes, subject to lender consent.