A Bridging Loan or Bridge Loan is a short-term loan given to 'bridge the gap' between buying a new house and selling your previous house.
Bridging Loans can also be useful when used as a short term loan to help you buy a property at auction, when money is needed immediately as you may not have sold your current property yet.
A Bridging Loan (or Bridge Loan) comes into its own when the need arises to borrow money for a short-period. The most common use of these loans is to help fund a new house purchase while you're waiting for your existing property to sell.
Bridging Loans can be invaluable in facilitating a property purchase that otherwise might not be possible. But as you might expect with a stop-gap measure, they can be significantly more expensive than a 'normal' loan.
Your property may be repossessed if you do not keep up repayments on your mortgage.