What is a Bridging Loan?
A bridging loan, also known as a ‘fast loan’, is a sum lent on a short-term basis to quickly fund a property purchase. This makes them perfect for securing a new home before selling your current one, for example when buying a property at auction.
The clue’s in the name: bridging loans act as a financial bridge between projects. You’d typically take one out when you expect to pay it off over a short period of time, as the interest rates on bridging loans tend to be higher than many other types of loan.