Closed Bridging Finance

This is the term for bridging loans that have a clearly definable and secured exit strategy in place. The lender would expect confirmation that exchange of contracts has taken place and the deposit has been received by the solicitors for the purchase. This enables lenders to confirm the intent of the proposed exit party.

For example; if the bridging loan is to be repaid via the sale of an existing property (the exit), contracts should have been exchanged via solicitors and the deposit paid, this enables the lender to confirm that the purchasers of the property are thereby being fully committed to the deal and consequently mitigating the lenders risk.

As has already been mentioned, the rates for this type of transaction are no different from an open bridging loan; however the chance of your bridging loan application being approved will be greatly increased in the circumstances described above.