What are bridging loans and how do they work? Bridging loans are designed to help people complete the purchase of a property before selling their existing home by offering them short-term access to money at a high-rate of interest. As well as helping home-movers when there is a gap between the sale and completion dates in a chain, this type of loan can also help someone planning to sell-on quickly after renovating a home or help someone buying at auction. As banks and building societies have grown more reluctant to lend in the wake of the financial crisis, there has been an influx of bridging lenders into the market. However, rates are generally higher than Mortgages and there can be hefty administration fees on top. They are, however, a very useful tool enabling a purchase undeer otherwise difficult circumstances.