What is a Bridging Term?

The bridging term refers to the duration of a bridging loan, typically ranging from 1 to 18 months. This short-term financing is designed to cover a temporary funding gap, not to be a long-term solution.

The length of the bridging term is determined by the borrower's specific needs and the complexity of their project. It's always best to plan for a realistic term upfront to avoid unexpected costs.

Careful management of the bridging term is essential to avoid penalties and ensure a smooth transition to the long-term financing or sale of the property. Regular communication with the lender is key.