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Bridging loans could be useful if secured loans are difficult to qualify for

The potential value of bridging loans has been highlighted by an information and price comparison site which said they can be useful in times of "financial duress".

Lee Tillcock, editor of Business Moneyfacts, explained that this type of fast loan is often used by those buying homes at auction or people who need funds quickly.

Indeed, bridging loans can perform an "ever more important role" in today's economic climate, when longer-term loans may be that bit harder to secure, he added.

"Bridging finance is ideal for any situation where funds are required quickly and for short periods," Mr Tillcock explained."It can be used to help buyers move fast."

Once a home is purchased using a bridging loan, some people may find that a secured loan can then help them to repay the debt over a longer period and at a lower interest rate.


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