An open bridging loan has no fixed repayment date. Unlike a closed bridge - where you have a confirmed exit before drawdown - an open bridge is arranged where the exit is intended but not yet contractually confirmed. It gives flexibility when timing is uncertain, at a slightly higher cost.
Open vs Closed: The Core Difference
| Feature | Open Bridge | Closed Bridge |
|---|---|---|
| Exit confirmed at drawdown? | No | Yes |
| Typical term | 12–18 months | 1–12 months |
| Monthly rate | Slightly higher | Lower |
| Flexibility | High | Lower |
| Best for | Unconfirmed sale or remortgage | Exchanged on sale, remortgage agreed |
When Is an Open Bridge Appropriate?
Open bridging suits situations where you know broadly how you will repay but cannot pinpoint the exact date:
- You are selling a property but have not yet found a buyer or exchanged contracts
- You intend to refinance but haven't applied for the long-term mortgage yet
- A development is nearing completion but the sale or refinance date is uncertain
- You are acquiring a property and plan to sell an existing asset - but timing isn't locked
Open Bridging Rates
Open Bridge with No Fixed Exit
In some cases, the borrower has no specific exit strategy in mind at the time of application - for example, a property investor managing cashflow who intends to refinance at some point. This is considered higher risk by lenders and may restrict the pool of lenders available. At Doulton Bridging Finance, we are honest about where a case sits in the market - if a lack of exit strategy makes a loan difficult to place, we will tell you.
Key Lender Considerations
Lenders offering open bridging will typically ask for: a realistic narrative around the exit, evidence of the property's saleability or remortgage viability, a demonstration that the borrower can service or roll interest during the term, and sometimes a valuation that supports both current and development/improved value.