Individuals and legal entities can take out bridging loans for temporary or short-term financing. Borrowers and lenders are able to adjust to each other's needs. Even though the loan term is relatively short, it is often extended up to one year in some cases. The interest rate can range from 2% to 4% in this case. Everything can be done to simplify interest rates and conditions with bridging loans and long-term mortgages (a long-term mortgage statement containing a clause that a loan or part of a loan can be taken or the right to take it). Bridging loans can be repaid in a number of ways. A loan can be repaid through regular monthly payments, for example. Another option is to make a lump sum payment at the end of the loan term. The existence of these debt repayment options is understandable, as loan repayments are usually independent of maturity until several months after the loan is closed.

Bridging loans are ideal as a form of short term financing, often as a temporary measure. Interest rates and conditions vary, so it is important to read them well and choose a loan that is msot suitable for your needs.

A bridging loan is a short-term financing solution designed to "bridge the gap" between immediate financial needs and long-term funding. Typically used in real estate, it helps buyers purchase a new property before selling their existing one. The loan is secured against the borrower’s current property and is repaid once the sale completes, usually within 6–12 months. Bridging loans can be closed (with a fixed repayment date) or open (flexible repayment). They offer quick access to funds but come with higher interest rates and fees than traditional mortgages. Lenders assess eligibility based on equity, exit strategy, and creditworthiness. While useful for avoiding property chain delays or auction purchases, borrowers must ensure they can repay the loan promptly to avoid financial risks.