1st UK Finance

read moreBridging loans are a short term finance option for obtaining finance from a property, the term bridging loan comes for the term to bridge the gap which in effect means bridging the gap between funding coming in from a property sale or from another source of funding becoming available to you. Most bridging finance is used to enable the purchase of a residential property or commercial property before the existing one is sold.

Bridging loans come into their own when either purchasing a property or raising equity out of a property because other forms of lending are not possible. These are loans that are of a temporary nature so as can be expected bridging loan interest rates are usually more than with a traditional mortgage, although in recent years the gap between a bridging loan and a traditional mortgage has come down significantly.