Financing
Bridging Loan
Short-term finance for quick purchases or refurbishment
Full Definition
Bridging loans provide short-term finance (typically 1-24 months) for property transactions requiring speed or not meeting standard mortgage criteria. Interest rates are higher (0.5-1.5% monthly) but enable quick purchases, auction buying, and refurbishment funding. Exit strategy (sale or refinance) must be clearly defined.
Related Terms
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Analyse a PropertyMore Financing Terms
LTV (Loan to Value)
Mortgage amount as percentage of property value
ICR (Interest Coverage Ratio)
Rental income compared to mortgage interest payments
Remortgage
Replacing existing mortgage with new one
Equity
Property value minus outstanding mortgage
Leverage
Using borrowed money to amplify returns
Portfolio Landlord
Landlord with 4+ mortgaged properties