For example a bridging loan was taken out in order to purchase a new property before an existing property was sold. This may have been necessary in order to secure the purchase of the new property because the customer felt that if they waited until they sold the existing property they may have lost their dream new home to someone else. By using a bridging loan a cell chain is made easier because the customer can buy their new property without any restrictions caused by selling their existing property. Once they find a buyer for the existing property they will be able to repay their bridging loan. Without the bridging loan the new property may have been lost, or the customer may have had to reduce the price of their existing property to sell it in a shorter timescale. Since the purchase of the new property has been secured, they can wait to sell the property for a fair price.

However each month that they have the bridging loan is costing interests and this should be considered, in addition to the costs in setting up the bridging facility. For this type of bridging loan the exit strategy is the sale of the existing property.