Masthaven Group Ltd,
Mimosa House,
12 Princes Street,
London W1B 2LL
Tel: 020 7036 2000
Fax: 020 7036 2001
e: enquiries@masthaven.co.uk
Open Bridging Loan
Q - What is an open bridging loan (open bridge)
An open bridge is where the repayment method is undetermined at the point of initial enquiry. Almost all bridging loans are now open bridging loans because the repayment method is rarely guaranteed. Usually it will be refinance or sale of property. If refinance, the lender can pull the product that the client requires at a moment’s notice and then the client has to then go and find a different product to apply for. Similarly, sales of property fall down at the last hurdle quite frequently due to a variety of reasons. Most bridging companies now deduct the term’s interest from the advance of the loan and repay what is not used as this gives them extra security knowing that the interest is paid for the term of the loan.
See our Bridging loan rates
See also
