If you own your current home outright, the bridge is a "first charge." If you still have a mortgage, the bridge is a "second charge," which is typically more expensive because the mortgage lender gets paid first if the home is repossessed. Guide: How to Buy a House with a Bridging Loan
A bridging loan (or "bridge loan") is a short-term financing tool used to "bridge" the gap between the purchase of a new property and the sale of an existing one. It provides immediate cash flow, allowing you to secure a new home without waiting for your current house to sell. bridging loan to buy house
These have a fixed repayment date, usually based on a finalized sale date for your old property. If you own your current home outright, the
Because these loans are temporary, lenders require a clear "exit strategy"—a specific plan for how you will repay the loan, such as the sale of your old home or switching to a traditional mortgage. Loan Types: These have a fixed repayment date, usually based
Bridging loans are against property, meaning your home acts as collateral. They typically last between 3 and 12 months , though some terms extend to 3 years.
These have no fixed date but must still be repaid within a set period (usually one year).