Closed Bridge

A closed bridging loan has a defined, confirmed exit date. The most common example is where exchange of contracts has occurred on a property sale, giving a confirmed completion date by which the bridge will be repaid. Because the exit is certain and dated, lenders view closed bridges as lower risk and typically offer lower rates than open bridges.

Other examples of closed exits include a confirmed mortgage offer from a lender with a known completion date, or a definitive agreement for the sale of a business asset. The key is that the repayment source is identifiable and contractually committed, not merely planned.

Lenders will want to see documentary evidence of the confirmed exit when assessing a closed bridge application. This might include the solicitor's exchange confirmation or the mortgage offer letter.

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