Should I use bridging finance to buy a property?

“Bridging loan” is a term used to refer to borrowing money to cover a short-term deficit in liquidity. It is sometimes used to cover gaps between the sale and purchase of two properties. These loans can be extremely helpful as they can be arranged and approved fairly quickly in case you need to secure the property against it. The size of the loan will depend exclusively on your current equity. On the positive side, the repayment plans of bridging loans have a certain degree of flexibility and you can pay off the loan by selling the property or by getting a traditional mortgage. 

However, these loans are usually short-term and due to this, they can accrue higher interest rates than a traditional mortgage. They can also incur higher fees which add to the overall cost of the transaction. Using a bridging loan from a reputable lender is a secure form of borrowing and can have very positive outcomes, especially if you are looking to take advantage of a good opportunity and close a deal more quickly. The use of this loan will depend solely on your equity and your personal circumstances, so make sure you research thoroughly before making a decision.