While bridging loans can be beneficial, they come with risks. The higher interest rates can accumulate quickly, and if the expected funds (like from the sale of a property) don’t materialise, the borrower might struggle to repay the loan. It’s crucial to have a clear exit strategy when taking out a bridging loan.
As part of our bridging loan legal service, we will break down the clauses, terms, and conditions so you are fully aware of the risks involved and your obligations to the lender.
This can include regular updates, completion within a certain timescale, and paying additional fees.