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Taking out a bridging loan could help homebuyers through the mortgage process but they must have an exit strategy, a leading industry expert has claimed.
The growth in popularity in bridging loans - which can be used to bridge the gap between buying a new property and selling the old one - can be linked to rising house prices.
Many homebuyers are using such loans to fund the purchasing process before their mortgage is agreed.
However, a spokesperson for the Council of Mortgage Lenders (CML) warned that such loans have high entry and exit fees and a "clear" exit strategy is necessary.
The spokesperson added: "Bridging finance is the main and obvious route where there is a mismatch between the purchase of a property and the sale of the former property, and there is a need to bridge that gap."
Representing 98 per cent of the mortgage industry, the CML is the trade association for the mortgage lending industry.
