Bridging loans are a short-term funding option. They are used to ‘bridge’ a gap between a debt coming due and the main line of credit becoming available. Or they can simply act as a short-term loan in pressing circumstances.
Why would you take bridging loan? There are many circumstances when bridging finance can be used to assist you including property investment, buy to let and development.
Examples can be, If you are refurbishing a property for selling you can take bridging loans. Or if you are converting your house to enhance its value to the high street lender you may want to consider taking a bridging loans.
The Financial Conduct Authority do not regulate Bridging / Commercial loans and certain types of Buy to Let Mortgage and some investment mortgage contracts.