Housing Bridging Loans

Benefits Summary

🔸 Buying a new home before selling your current property

🔸 Trading down to a smaller or less expensive home

🔸 Purchasing investment properties for renovation

🔸 Securing a property at auction

🔸 Funding buy-to-let renovation projects

🔸 Creating short-term breathing room while arranging sale proceeds

🔸 Moving quickly when standard mortgage timelines may not suit

*As these loans are short term, usually 12 to 18 months, the overall cost may be higher than a traditional mortgage.

Housing Bridging Loan

A Housing Bridging Loan is short-term finance that may help you buy a new property before selling your existing home. It may also support investors purchasing property for renovation, resale, rental, or auction opportunities where timing is critical.

Whether you are trading down, buying at auction, or renovating an investment property, bridging finance can provide the flexibility to move quickly when the right opportunity comes along.

Bridging Loan Uses

There are several approved reasons to use bridging finance:

You may need to move into a new property before your current home is sold.

You may be an investor purchasing a property that needs renovation before it can be rented or resold.

You may also be buying at auctions where funds are required within a short timeframe.

A bridging loan is designed to provide short-term funding while you complete your next step, such as selling your current home, refinancing, or completing renovation works.

Key Bridging Loan Options

Individual Trading Down

This option may suit borrowers who want to sell their current home and move to a smaller or less expensive property. It may also be possible to use this option when trading up, but this should be discussed with your broker or lending manager.

Key Features

Borrow up to 70% loan-to-value of your current home
Up to 4 applicants on each mortgage
No minimum term
Maximum term of 12 to 18 months
Minimum loan size of €100,000
Maximum loan size of €1.5 million
Minimum property value of €145,000
No maximum property value
No additional penalty for partial or full repayment before the expiry of the term
No additional penalty for partial or full repayment before expiry of term.

Loan-to-value means the percentage of the property value compared with the loan amount being sought.

Interest Options Available

1 Accumulated interest

Available for terms of up to 12 months.

With accumulated interest, the interest adds up each month until the loan is cleared. This amount is added to your loan balance and must be repaid in full when you sell your current property or clear the loan.

2 Interest Only

Available for terms of up to 18 months.

With interest-only repayments, you pay the interest each month. The original amount borrowed remains outstanding and is usually cleared when your current property is sold.

Applicant Criteria

Minimum applicant age: 21 years

Maximum age at maturity: 75 years

Minimum annual income: €40,000

Income can be combined for single or joint applications

Up to 4 applicants may be included on each mortgage

Property Location Criteria

DUBLIN

CORK

KILDARE

Limerick

wicklow

dundalk

meath

drogheda

galway

waterford city

And other urban centres with a population of more than 5,000 people.

Key Bridging Loan Options

Buy-to-Let Renovation & Auction Finance

This option may suit experienced landlords, investors, individuals, or companies purchasing property for renovation, resale, rental, or auction purposes. It may be particularly useful where funds are needed quickly or where the property requires improvement before long-term finance is arranged.

Key Features

Borrow up to 70% loan-to-value of the property being purchased
Up to 4 applicants on each mortgage
No minimum term
Maximum term of 12 to 18 months
Available to individuals
Available to companies through a Special Purpose Vehicle
Available to professional landlords owning at least 2 investment properties
No additional penalty for partial or full repayment before the expiry of the term

A Special Purpose Vehicle, or SPV, is a limited company set up for the sole purpose of purchasing and holding property for investment.

Loan Amounts & Exposure Limits

For Buy-to-Let Renovation and Auction Finance:

An individual or company may be able to borrow up to €4 million where the weighted average LTV for all loans is below 70%

Minimum loan size: €100,000

Maximum loan size: €1.5 million

Maximum exposure: €7 million

Borrowing between €4 million and €7 million may be capped at 60% LTV

These limits are subject to lender assessment and approval.

Ready to Explore Your Options?

Would you like to learn more about our Housing Bridging Loans? Get in contact today and one of our Qualified & Experienced Lending Managers will get right back to you.

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