What Exactly is Open Bridging?

For the UK property investor, open bridging is different from closed bridging in that there isn't always a specified loan period. These loans tend to be a lot more expensive than normally loans. The reason for this is because the lender sees them as being more risky.

From the average homeowners point of view, this form of bridging is normally taken out by a buyer who has found a property they want to purchase but have either not got their own property on the market yet or whose own property hasn't received an offer for it yet.

Generally the bank will ask the person/persons wanted to take out the open bridging, a lot of questions and they will normally need to have a reasonable amount of equity in their current home.

The lender will usually want to see the mortgage offer on the new property and they will want to see proof that the current property is on the market and there are active steps being taken to sell it.

Lenders have also been know to ask what contingency plans you have in place if the sale of your current property does not go according to plan and it has not sold within a few months.

For homeowners in this situation lenders do often put a limit on the term of the loan. This limit is normally around 12 months, after that time you will have to renegotiate.

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