Bridging Loans

Bridge financing is a form of temporary financing intended to cover short-term costs until the moment when regular long-term financing is secured. In the context of mortgages, bridging loans specifically help homeowners who are in the process of buying a new property while still owning their current home. This type of financing allows them to access the equity in their existing property, facilitating the purchase of a new home without waiting for their current home to sell. Bridge loans typically have higher interest rates and shorter repayment terms, often lasting just a few months. They provide essential liquidity, enabling buyers to act quickly in competitive housing markets.