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    Spain and Portugal
    Covering all
    Spain & Portugal

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Bridging finance in 2022

Bridging loans serve as an alternative to a mortgage where finance is needed for a shorter term than is typical for a mortgage, when the loan is repaid by a planned future transaction (usually the sale of the asset itself or another property). We are noticing an increase in demand for this type of finance. Loans generally need to be in excess of €500,000, up to 65% loan-to-value (LTV) and loan terms of 1-3 years. Depending on the profile of the client, rates can start as low as 0.7%pcm. The main benefit to the client is that no capital repayment is required during the term and interest can be paid either monthly, yearly or rolled up to maturity.

We had an enquiry this week from a client wanting to borrow €10 million (50% of the purchase price) for commercial purposes for the next 12-18 months. He had been offered 13% pa in principle via a private investor and has approached us to get a better interest rate. As a broker with specialist knowledge of this market, we have access to more potential lenders and are likely to achieve much more competitive conditions. It’s important to highlight that clients are not protected by mortgage regulation for this type of finance, you can find a little more about bridging finance by checking out our mortgage products.