Timing can be a crucial issue when selling one property and buying another. Sometimes if the right property becomes available, it is not always possible to wait until the current one is sold or negotiate convenient settlement terms. A bridging loan can be used to cover the financial gap when buying one property before the existing one is sold.

There is a certain time period, usually six to twelve months, in which the existing property must be sold. A bridging loan can be secured by both the existing and new properties.

Bridging finance may be more expensive than ordinary home loan finance, however it’s main advantage is that a Bridging Loan may prevent you from loosing your deposit through inability to settle on the new purchase.