Bridging Loan is a typically short-term facility to provide capital in situations where there is a time lag between the purchase of one asset and the sale of another. It enables the borrower to buy before they can sell. This is especially useful in the property market, where chains and auctions can mean promising opportunities are time sensitive.

A bridging loan is a short-term solution which lasts between 1-24 months. They are often used by landlords, developers and people stuck in a broken housing chain. Due to the nature of the loan they can be expensive and it is crucial before taking out this type of finance that you know how you will repay the loan, for example through the sale of a property or with funds from a mortgage.