100 percent bridging loans are useful for people inbetween buying a new property and who may still be selling their old home. The timing of mortgages and the buying or selling cycle can vary, especially when you are involved in buying chains and offers, bids or auctions.

Some banks will lend you a 100% bridging loan, which works towards financing temporarily your new home for the 100% mortgage, whilst you are still waiting for the first property to sell, or for the new buyer to secure the funds for the purchase of the home from you, and so you cannot pay for your mortgage temporarily.

This is useful as it essentially bridges the gap between the shortfall of the old building being sold and the new building being bought, as there could be a short term of time whereby you may actually own 2 houses, and so have to service the costs of these.

Although very useful, 100 percent bridging loans should be used simply as a short term solution, as the APR could be higher than a 100 mortgage or remortgage due to the nature of the loan.

When used for the correct purpose, these bridging loans can avoid big headaches for the mortgagee who finds themselves with a shortfall in their money, but should simply be used as a short term solution due to the interest rates of the 100% loans and look towards the mortgage and remortgage market for 100 percent lending options.