B
Loans
Bridging Loan
A short-term loan designed to 'bridge' a temporary funding gap, often used when buying a new property before selling your current one, or when waiting for a large payment that has been confirmed but not yet received. Bridging loans carry higher interest rates due to their short-term nature.
Usage Examples
"They took out a bridging loan to cover the deposit on their new house while waiting for the sale of their old one."
"Bridging loans are typically for 3 to 12 months and charged at rates higher than standard personal loans."
"Before using a bridging loan, ensure you have a confirmed source of funds to repay it — the costs add up quickly."