Bridging loans are taken either by professional property investors or developers when they need swift finance. Bridging finance can be used in a number of different circumstances including:
- To assist with a swift purchase
- To refinance an existing loan
- To allow time for a planning permission to be obtained
- To release equity
- A combination of the previously mentioned purposes
Some non-professional property investors take advantage of the availability of bridging loans in order to release some equity against their properties. The latter can be qualified as a regulated transaction. In this instance, the bridging lender and introducing broker should be FCA regulated.