Bridging Finance in Spain and Portugal

A bridge loan is a temporary financing option designed to help homeowners “bridge” the gap between the sale of an existing home and the purchase of a new one. Owners use the equity in their current home, for the down payment on their next property while waiting for their home to sell. 

What is bridging finance? 

This type of financing is most common in hot real estate markets where bidding wars are the norm. There has been an increasing demand for this type of service, as currently, real estate markets across the world are quite dynamic. Bridge financing allows buyers to make quick decisions about their new dream home without worrying if their existing home has sold.  The proceeds from the current home sale are used to pay off the bridge loan and any interest. 

Bridge loan advantages: 

  • Positions you to buy a house before yours sells 

  • Provides peace of mind  

  • Allows you to use the equity in your current home for a down payment on your new home 

Potential disadvantages of bridge loans: 

  • Interest can be more expensive than conventional financing 

  • Terms, costs and conditions can vary widely 

  • May be a higher risk: you’re taking on a new loan with no guarantee that your home will sell during the term 

Before you begin a new home search in a sellers' market, we advise you to determine if you are eligible for a bridge loan first. Then you’ll be ready to quickly make an offer on the new home. 

Consult a mortgage specialist below to learn more about bridge financing. 


As a broker and specialist in this market, our partner Mortgage Direct works closely with multiple short-term bridging lenders, based both in Spain and in Portugal and are, therefore, able to move very quickly with our lenders to ensure quick financing can be in place.  

Bridging finance is most common in hot real estate markets and it may be exactly what you need.

Bridging finance options - Spain 

Short-term bridge finance is not as accessible in Spain as it might be in other countries, especially when there is a need to access funds within a very short time frame.  Due to recent Spanish mortgage legislation, Bridge Financing is currently available for companies, if there is a commercial need for the funding and if the company is you are able to transfer an asset into a corporation entity. 

Our partner, Mortgage Direct can arrange Bridging Finance throughout Spain for: 

  • amounts in excess of €500,000  

  • for loan terms of up to 36 months  

  • up to 65% Loan to Value ratio 

Interest rates are available from 0.70% per calendar month (pcm) and different sectors are considered. One of the main benefits is that no capital repayment is required, and interest can be paid either monthly, yearly or rolled up to maturity.  

Bridging finance options - Portugal 

In Portugal, we are seeing an increased demand for bridging finance. Clients who are looking for a new home but have not yet found a buyer for their existing Portuguese home, are increasingly utilizing short-term bridge financing. We can arrange this type of finance option – where a short-term mortgage will be placed on both the new property and the existing one. 

Get a mortgage quote for your property from your couch 

You’ve been thinking about getting a mortgage loan to buy your dream home - congratulations! Properstar is partnering with a leading mortgage broker, Mortgage Direct, that operates in Spain and Portugal. Together, we can help you to find the right mortgage solution.  

You'll get personalized mortgage advice and up to 2 no-obligation mortgage quotes. Find out more details and get your quote directly. 


* Mortgage Direct is regulated by the Bank of Spain and is registered in the Blended Occupancy Specialist (BOS) Registry of Real Estate Credit Intermediaries under number D108. 

Get in touch with a mortgage advisor  


Get in touch with a mortgage advisor

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