Bridging Loans

  • Bridging Loans

Bridging Loans: Buying Before You Sell Without Losing Sleep

Many homeowners want to secure their next property but have not yet sold their current one.

Move once, not twice – if your finance is structured right

Bridging loans can smooth the transition between homes.

Suggested Sections

  • What is a bridging loan?
  • How peak debt and end debt are calculated.
  • How interest is treated during the bridging period.
  • Closed vs open bridging
  • When there is already a sale contract on the existing home vs when there is not.
  • Typical maximum bridging periods.
  • Pros and cons of bridging finance
  • Pros: Avoid renting between homes, more time to sell.
  • Cons: Higher short-term debt level, need realistic sale expectations.
  • Assessment and exit strategy
  • How lenders test that you can manage the end debt once the old property is sold.
  • Importance of conservative sale price estimates and timelines.
  • Practical tips for a smooth move
  • Align settlement dates where possible.
  • Work with a broker who understands lender-specific bridging policies.