THE government recently announced plans to speed up the house buying process. The most radical suggestion is the introduction of a "seller's pack", which should contain all the information necessary for buyers to make an informed choice.

But in the small print Labour also said it would look at bridging loans: how they work, how they can be improved and if there are better alternatives.

If used properly, bridging loans can speed up the house buying process and cut down the number of sales that falter or fall through because of problems somewhere along the chain - at least 10% of purchases are seriously delayed.

The problems slow down the whole process and add to the number of buyers, all competing for a limited number of properties, which can drive prices unrealistically high.

Here are ten essential questions about bridging loans and their alternatives.

It is a loan to bridge the gap between the sale of one property and the purchase of another. You may, for example, need to move before the sale of your existing property is completed.

A bank or building society lends you the money necessary to buy your new home, using your existing home as security.

You can take out a closed-end loan which lasts for an agreed length of time - usually the period between exchanging contracts on your existing home and completing the purchase of the new property.

Open-ended loans are more risky. If you arrange an open-ended loan to buy your new home and then discover that you cannot sell your existing property, you will have to

pay your new mortgage and the bridging loan, plus the mortgage on your old home until it is sold.

It can be very costly - and you may eventually be forced to accept a lower price for your old property if you discover that you are unable to manage your debts.

You usually have to approach a bank or building society - although not your existing lender. Whether or not the loan is granted depends on your individual credit record and relationship with the lender.

Lenders usually levy a rate according to your own circumstances - the more of a credit-risk they think you pose, the more you will pay.

But they typically charge about two percentage points above the typical standard variable rate, currently 6.99%. There can also be an application fee of about 1% of the loan value.

Several mainstream banks and building societies have pulled out of the bridging-loan market, including Halifax. Many also only offer closed-end loans.

The Department of Environment, Transport and the Regions wants to look at a wider variety of so-called "chain-breaking" loans that could be more suitable than bridging loans. They are already available from some lenders, usually through mortgage brokers or financial advisers that have good relationships with particular banks or building societies.

They cover your new property and your old property at the same time, effectively combining two mortgages into one. When you have sold your existing property, you can pay off a chunk of the mortgage on your new home.

It will be cheaper than maintaining a mortgage and a bridging loan, because there will be only one arrangement fee and one set of legal costs to be paid. Interest on the loans is also at standard mortgage rates, compared with a rate of up to two percentage points higher.

Stuart Robinson, director of Savills Private Finance, an independent financial adviser, says: "These loans are much cheaper because you choose your rate. We are offering a

1.35 point discount for two years at the moment - and you can redeem at any time."

You must be sure that you can meet the payments on two mortgages at the same time. Watch out too for redemption penalties. Some lenders impose a penalty if you redeem all or part of your chain-breaking loan.