Open vs closed bridging loans
Open versus closed is not two products. It is the same short-term, property-secured facility with one underwriting question: is there a guaranteed repayment date, or only a maximum term and a plan?
Closed bridging has a date the lender can treat as contracted — classically an exchanged sale, or a mortgage offer that can complete on a known day. “We hope to sell in eight weeks” is not closed.
Open bridging has no fixed day. It still has a maximum term and still needs an exit. Most auction, refurbishment and unsold-chain files are open. Open does not mean repay whenever you like.
Why closed is usually cheaper
Lenders price the chance they are still on the charge after the date they modelled. Market commentary in 2026 has put a typical gap around 0.1% to 0.2% a month on equivalent files. That is commentary, not a statistic we guarantee, and a messy closed file can still price worse than a clean open one.
The risk the headline rate hides
An exchanged sale can collapse. An offer can be withdrawn. The loan is then an open problem. Open files cost more because term overrun is more likely. Model a longer term in the calculator and look at the extra retained interest.
Open/closed is not the same as regulated/unregulated. You can have a regulated open bridge. See how bridging works and fees.
FAQs
Is closed always cheaper?
Usually on an equivalent file. Not as a rule of physics.
Can I start open and become closed later?
Sometimes, if contracts later exchange. Do not budget it as a right.
Does closed lock me in?
Closed refers to the exit date, not a mortgage lock-in. Early redemption and rebates depend on the offer.
What if the exchanged sale fails?
You still owe the gross loan. Tell the lender and rebuild the exit.
Next step
Use the calculator for an indicative starting point, then enquire if you want an introduction.