A Closed bridging loan will have a clearly defined term, repayment date and method of repayment. A typical example would be to take out a bridging loan following exchange of contracts pending completion of a sale or other guaranteed source of funds. Conversely, an open bridging loan has no defined repayment date. It is higher risk to the lender and as a result, the borrower is likely to pay higher interest as well as a lengthier application process for the lender to understand and be comfortable with the risk.