A bridging loan is a type of short-term financing that can provide quick access to money for a range of purposes, but it is most commonly used in the real estate sector.
It serves as a “bridge” between a financial gap that occurs when you need to pay for something but are waiting for funds to become available from another source, such as the sale of a property or the receipt of a loan with a longer term.
This finance is secured against the existing property (utilising equity) and the new property being purchased. Usually, bridging loans are short term (normally 6 months) to allow for the sale of the original property and more expensive than other types of loans.
There are alternative ways to finance a change from one home to another, so please talk with us to discuss your options.