Bridging Loans - What Is A Bridging Loan & How Does It Work?

So what is a bridging loan? Well a bridging loan is a short term loan which is usually used by someone who is in the middle of selling their old property and buying a new property. A bridging loan is taken out when the person has not sold their old property yet and need the bridging loan to fund the purchase of their new property until their old property is sold. There are many mortgage providers, banks and building societies that can offer bridging loans. A bridging loan typically lasts for between 2 weeks and 3 years. Bridging loans can also be used in other circumstances such as a business loan for operating capital.