A bridging loan is a type of short-term financing that is typically used to bridge the gap between the purchase of a new property and the sale of an existing one. It can help borrowers to access the funds they need to buy a new property before they have sold their current one. Bridging loans are usually secured against the borrower’s existing property and can be used to cover the purchase price of the new property, as well as any associated costs such as stamp duty and legal fees. They are usually offered for a period of 6-12 months; this can vary depending on the lender and the circumstances of the borrower.
