Borrowers are finding it increasingly difficult to access finance bridging - and what is being offered is becoming more expensive. As the housing market slows down, borrowers are finding it increasingly difficult to sell their first home. Often it is taking months longer than anticipated and sometimes the price can be far below expectations.

The result is that many of the lenders are tightening up on the finance they are offering and some are even making it more expensive for many borrowers. As one lender put it, it is not in their interest to have people over-exposed when the market is tightening up. "When the property market is rising, people can be more relaxed about closing one side - but when the market is tightening up and there are clear signs of stickiness on the selling side, there can be problems and that has to be borne in mind."

Before considering bridging finance, borrowers should assume that their home may not be sold in a reasonable amount of time. Even if the house is not sold for up to nine months, they should able ensure they are in a position to pay. The other thing you might consider as a borrower to consider is the size of your mortgage. If the home has to be sold for £10,000 (€12,700) or even £40,000 (€50,790) less than you had been hoping, could you add that amount to the mortgage?

Lenders are of course taking all this into account when considering bridging finance. But some will not consider it at all. Bank of Ireland, for example, will only offer closed bridging where contracts have been exchanged. This means the bank can be sure of exactly the amount and the timing of the coming monies. It offers this at its standard variable rate of 5.85 per cent.

According to a spokeswoman for the bank, it would not be financially wise for customers to use bridging facilities along with financial outgoings on old and new mortgages. "The mortgage advisers in Bank of Ireland branches are available to customers to assist them to co-ordinate the closing and selling dates of buying a home, to ensure that delays and financial outlays are kept toas close to the minimum as possible."

This is the best course of action, but however it is not always possible, and according to Irish Permanent about one in every four people trading up need some form of bridging finance. Irish Permanent offers both open and closed bridging finance, the policy for which has not been changed in recent years, according to a spokesman.

However, whether or not contracts have been signed, Irish Permanent charges 7.54 per cent, well above its 5.89 per cent variable rate.

But the spokesman said it has no specific criteria and the financing is available to all existing Irish Permanent customers. It is also possible for first-time buyers to get bridging for their grant from the Irish Permanent.

The £3,000 (€3,810) grant can take as long as 12 weeks to be paid to a borrower. It can be taken up front, although a high interest rate which works out to 7.92 per cent on an annual basis will be charged for the privilege.

For those who get caught unable to sell their home for as much as they had expected, there are difficult calculations involved in trying to decide what to do. For example, if your house was worth £300,000 (€380,920) and you were paying an interest rate of 6 per cent, the annual repayment would be £18,000 (€22,855) a year. But if you were considering renting it, the house might only take £1,000 (€1,270) a month after tax, insurance payments and some maintenance. This could mean just £7,000 (€8,890) into your hand - leaving a shortfall of £11,000 (€13,670).