Bridging loans offer a useful source of income when purchasing a property, it has been claimed.

A spokesperson for the Council of Mortgage Lenders argues that the products can allow an individual to buy a new house before the sale of their old one has gone through.

She asserts that the name itself is derived from the ability to bridge the gap between two more secure financial situations.

"Bridging finance is the main and obvious route where there is a mismatch between the purchase of a property and the sale of the former property," she states.

"It shouldn't necessarily be seen as a long-term solution to any property-related transaction."

Secured home loans could be a further means of releasing equity in a property prior to selling it.

Figures published by PriceWaterhouseCoopers in 2005 showed that 82 per cent of all borrowing at the time was secured, with property commonly used as collateral.ADNFCR-1287-ID-18318453-ADNFCR

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