First Charge Bridging Loans

A first charge bridging loan is a type of short-term loan that provides quick access to capital. It is a form of bridging finance, where the loan is secured against a property. The ‘first charge’ means the lender has the first claim on the property if the loan is not repaid. This gives the charge lender priority over any other lenders.

First charge bridging loans are typically used for property purchases, renovations, or to bridge a gap in financing, offering a fast and flexible solution when traditional mortgages are not an option.

How does a first charge bridging loan work?

A first charge bridging loan works by providing a short-term loan secured against a property. It is one of the types of bridging finance available, offering a quick loan when purchasing a new property or renovating an existing one.

The loan is provided by specialist bridging lenders and is typically repaid within 3-12 months, either through the sale of the secured property or by obtaining long-term financing such as a mortgage.

The ‘first charge’ means the bridging lender has the first claim on the property if the loan is not repaid, taking priority over any other lenders. This makes first charge bridging loans a popular choice for those looking to bridge a gap in their financing quickly and efficiently.

Some of the most common uses of first charge bridging loans include:

Remember, a first charge bridging loan is a short-term solution, and you should have a clear exit strategy in place to repay the loan within the agreed term, typically 3-12 months.