Example: auction purchase
A property investor may use bridging finance to complete an auction purchase, then refinance onto a longer-term mortgage.
This is an illustrative example only. Suitability depends on individual circumstances.
Finance
Move quickly when timing matters.
Bridging finance provides short-term funding, often for property transactions that require speed.
Tera is a credit broker, not a lender. Any finance is subject to status and the terms of the finance provider.
Overview
Bridging finance is a short-term facility, typically used when longer-term funding is being arranged or a property transaction needs to complete quickly.
How it works
Funding is provided for a defined short period, usually secured against property. Exit strategy is important — typically sale or longer-term refinance.
Common uses
- Property chain breaks
- Auction purchases
- Refurbishment before refinance
- Time-sensitive acquisitions
Benefits
- May enable fast completion
- Can bridge gaps between transactions
- Flexible for time-sensitive opportunities
Considerations
- Higher costs than long-term finance
- Clear exit strategy is essential
- Security and valuation required
- Terms are typically short — months rather than years
Information required
- Property details and purchase timeline
- Exit strategy
- Deposit or equity available
- Existing property portfolio
Who may consider
- Property investors with clear exit plans
- Businesses completing time-sensitive purchases
- Developers awaiting longer-term funding
The process
- 1.Discuss the requirement and timeline with Tera
- 2.Provide property and financial details
- 3.Review bridging options and costs
- 4.Complete quickly through the chosen provider
Bridging finance FAQs
Ready to understand your funding options?
Start with a short assessment and tell us what your business is planning next.
- No obligation to accept an option
- Clear next steps
- Human support available