What is a bridging loan?

A bridging loan is a short-term loan that is used to bridge the gap between the purchase of a new property and the sale of an existing property. It helps individuals or businesses secure financing quickly, allowing them to proceed with their plans without having to wait for the sale of their current property. Bridging loans are typically used in real estate transactions and can be a useful tool for those looking to buy a new property before their current one is sold. However, it is important to note that bridging loans often come with higher interest rates and fees, so it is crucial to carefully consider the terms and conditions before taking out such a loan.