When selling one property and buying another, timing the settlements to coincide can be very difficult even if you do find a property to buy in a short space of time.
Bridging finance helps to solve the problem of coordinating the settlement on one property with the purchase of another. When you are considering buying a new property, bridging finance can provide you with greater flexibility and more opportunities. If you find a property to purchase before you sell your existing property, a bridging loan provides short-term access to additional funds which enables you to buy before you sell. Effectively, the lender agrees to take on both mortgages.
