In effect, this type of lending is a kind of mortgage. It is secured on your home, but without low interest rates usually associated with a mortgage. You must be aware of risks associated with this. If you fail to sell your existing home, there is a chance you'll have to sell your new home just to pay off lending.

Probably most common use of a bridging loan would be connected to buying a property. A bridging loan gives you an agreed amount to help you bridge gap between selling and buying your property.

Being self employed or having an adverse credit history or CCJs need not be a problem. A bridging loan can even enable people who have an adverse credit history to build a track record before applying for a conventional mortgage. A successful bridging loan can have a positive effect on a borrower's credit score making future finance more attainable.

Bridging loans can be used to purchase properties at auction, fund short-term commercial or residential renovations, and to safeguard a property purchase if mortgage is delayed.

A useful feature of bridging loans is that client can repay capital at any time, thus reducing outstanding balance and monthly instalments.

A bridging loan can be used for a variety of purposes such as:

Hedge Funds are dangerous. They play with D-bomb and Hedge Fund managers don't know what they are doing. They are like children playing with a landmine in a sandbox. It's fun and exciting until darn thing goes off. A D-bomb explosion would have same impact on global financial market, as an H-bomb would have denoted over Salt Lake City. The result would be a multi-century wasteland after explosion. A D-bomb explosion means that our Civilization will be facing a new multi-century Dark Age.

The D-bomb is Derivatives Market. In theory, derivatives are balanced risk investments that allow Hedge Funds, banks, insurance companies and others to profit from spread created by bet. The three design problems with D-bombs are that risk is usually an either or option that doesn't factor in a third alternative. Many bundled derivatives have components that don't represent outside financial instruments that might have value after a D-bomb explosion. The Derivatives Market represents about forty times total value of all world currencies combined. If D-bomb goes off, all world currencies would be worthless about forty times over. There simply isn't enough money to cover a D-bomb meltdown.

In simple terms, a derivative is merely a bet. And it can be a bet on anything: interest rates, exchange rates, stocks, commodities, etc.Find a counter-party willing to wager against you, and you havecreated a derivative. And to make bet you usually only have to put downa small fraction of bet amount. However, if their bet explodes, Hedge Fund must cover leveraged amount of their bets. It's this coverage requirement for dangerous bets that puts global financial market at risk. The D-bomb risk/reward ratio doesn't make sense to anyone who understands it.

Consider Long Term Capital Management. In 1998, it was largest Hedge Fund in world. It's derivatives shenanigans almost triggered collapse of entire global financial system. It careened to brink of failure and would have gone under if U.S. Government had not organized an emergency bailout. That bailout took taxpayers of twenty countries to cut timer to D-bomb denotation. And, Long Term Capital Management wasn't even an American Hedge Fund.

The global derivatives market is around $272 trillion, according to recent figures from Bank of International Settlements. And three big American banks' JP Morgan Chase, Bank of America and Citicorp - account for $77.6 trillion of money being bet.