Bridging
Loan
Bridging Loan: If a house purchase
arrangement involves the sale of one property and the
purchase of another it will normally be most convenient if
the two deals are concluded simultaneously. If this is not
possible and the purchase of the second property is to be
concluded before the sale of the first is completed then
additional financing may be necessary. This is a 'bridging
loan' & it bridges the gap between the two transactions.
A short term loan (usually at a higher rate)
taken out to cover the financial gap between buying a new
property and selling an existing property.
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