If you take a Bridging Loan For  House Purchase, you would generally decide on a loan term over say 12 months, although the loan can be repaid at any time within that 12 months and interest would only be payable on the actual days that the loan was outstanding. Note it is always better to go for a period that gives you plenty of time to redeem the loan, as the fees payable are the same if the loan is three or twelve months. Furthermore, you can never underestimate the delays that can be incurred when trying to get completion and the extra time can give you peace of mind instead of worrying about repaying the loan.

Generally speaking, bridging loans are FCA regulated if you intend to move into the house yourself, if it is a commercial transaction i.e you intend to sell the property without actually living in it then it is viewed as a business /commercial transaction and not therefore regulated.

These loans can vary significantly in price so it pays to shop around and compare as many loans as you possibly can before proceeding.

These loans are usually used if you find a property that you would like to buy before you have sold your own, they enable you to act like a cash buyer and take you out of the property chain. Although you still have to sell your own property to redeem the loan.