Bridging Loan real estate The single biggest difference between an open or closed bridging loans UK is in your exit strategy.
Although both are used for short term lending, open bridging loans don’t have a proven repayment strategy in place and only have a set time for repayment (which may be very broad in practice.)
An example of this could be someone hoping to sell a house in order to repay their bridging loan, but haven’t got a firm date in mind or an already agreed buyer in mind. On the flip side, with closed bridging loans the exact way the loan will be repaid is determined from the beginning. The lender can clearly see a strategy for getting their money back, whether it is via the sale of property, inheritance etc.
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