What is the difference between ‘open’ and ‘closed’ bridging?
A ‘closed’ bridge is where all terms and conditions of both sale and purchase on both properties have been agreed so the “exit route” or repayment source is already arranged but the funds are not likely to become available in the time required or there is a delay on moving in. An ‘open’ bridging loan means that there is not a confirmed repayment method or “exit route”. This usually comes about when terms have not yet been agreed on selling one property but you are still determined that you want to go ahead with the purchase of the second property. Different rates and LTV’s typically apply to ‘open’ and ‘closed’ propositions.
