A bridging loan is taken out to ‘bridge’ the gap between the purchase of a new property and the sale of an existing one.

Loans are generally short-term and secured on the existing property, but repaid as soon as this is sold.

‘Bridges’ may help you secure your new property, but you should be aware that they can be expensive and if the sale of your existing property falls through, you will be left paying two loans at once.

This article (Bridging Finance) is intended to provide a general appreciation of the topic and it is not advice.

Article expiry: 05 Feb 2021