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.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Some bridging finance is not regulated by the financial conduct authority.