Bridging finance

Bridging finance is short-term lending that covers the gap between buying a new property and selling an existing one.

The two types

• Closed bridging — you have an unconditional sale on the existing property with a known settlement date. Lower risk, lower rate, easier to obtain.
• Open bridging — the existing property is not yet sold. Higher risk, higher rate, and lenders are considerably more cautious.

What it costs

Rates are above standard mortgage rates, often significantly, plus establishment fees. During the bridging period you are servicing both loans.

The risk

If the existing property does not sell, or sells for less than expected, you are exposed. Open bridging in a falling market is one of the more dangerous positions in property. Lenders usually require a substantial equity buffer for exactly this reason.

Common misunderstanding

Bridging is a timing tool, not a funding solution. If the numbers only work assuming the existing property sells at your hoped-for price, that is not a plan.

Have a fallback. What happens if it takes six months? Can you service both loans that long? If not, sell first.

Related terms

Last reviewed: 1 August 2026 · General information only, not financial advice.

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