Bridging finance is built for speed and costs more than term borrowing, so it pays to check the alternatives first. Depending on the timescale and the asset, a remortgage or further advance, a second charge, development exit finance or raising capital across a portfolio can do the same job for less. We check this before we recommend a bridge.
Why look beyond bridging
A bridge solves a timing problem, and you pay for that solution: monthly-priced interest, an arrangement fee, and dual legal costs. Where the deadline is real — an auction, a chain break, a property no term lender will touch yet — that cost buys the deal. Where the deadline is soft, a cheaper instrument usually exists, and the discipline is to find it before committing. Because the cost is real, we first look at your wider portfolio and assets to see whether there is a cheaper or more practical route.
The main alternatives
A remortgage or further advance
Where time allows, refinancing an existing property — or taking a further advance from your current lender — raises capital at term-mortgage pricing. It brings a valuation, legal work and an arrangement fee, and it moves at mortgage pace: typically weeks. For a planned purchase rather than an urgent one, this is often the cheapest route. See buy-to-let remortgages.
A second charge
A second charge raises funds against a property you already own, sitting behind the existing mortgage so your current deal stays untouched. Where the need is short-term and urgent, second-charge bridging does the same job at bridging pace; where it is longer-term, a second-charge term loan may price better. Which wins depends on how long you need the money and what it is for.
Development exit finance
If the pressure point is the end of a development — the scheme is complete or nearly complete and the development facility is expiring — the designed tool is development exit finance, which replaces the development loan and buys time to sell the units properly rather than at a discount.
Raising capital across a portfolio
Where you hold equity in other properties, that equity can work instead of new cash — through a refinance of the wider portfolio, or a cross-charge that lets a lender take security across more than one asset. This is frequently the structure that makes a deposit unnecessary; our bridging loan deposit guide shows how it works.
Cash, company funds or family money
The quiet alternative: where accessible funds exist — company profits, dividends, savings or family support — the cheapest bridge is the one you do not take. The judgement is whether deploying those funds elsewhere would earn more than the bridge costs; that is a conversation worth having before any application.
When bridging is still the right answer
Where money is needed quickly, bridging is often the practical answer — a term mortgage might take weeks to arrange and lose you the property. At auction, with 28 days to complete, a standard mortgage application simply cannot move quickly enough. And for property a term lender will not yet touch — unmortgageable stock, heavy refurbishment — bridging is not the expensive option; it is the only one that opens the deal. The full product picture is on our bridging loans page, with costs itemised in the bridging loan costs guide.
How we decide
We start with the goal and the deadline, then test the cheapest sufficient route first: existing lender, refinance, second charge, equity elsewhere. Only when speed or the asset rules those out does bridging come to the front — with a clear, evidenced exit, because we won't arrange a bridge we can't see a clean way out of.
Frequently asked questions
What is the cheapest alternative to a bridging loan?
Where time allows, term borrowing — a remortgage, further advance or buy-to-let refinance — is generally cheaper than a bridge, because it is priced for the long term. The trade-off is pace: a term mortgage might take weeks to arrange, which is exactly the gap bridging exists to cover.
Can I use a second charge instead of a bridging loan?
Often, yes. A second charge raises funds against a property you already own without disturbing the existing first-charge mortgage. Where the need is short-term, second-charge bridging does the same job at bridging pace.
Are there alternatives when buying at auction?
Fewer. With 28 days to complete, a standard term mortgage is not a realistic option — the application simply cannot move that quickly. Unless you are a cash buyer or can raise the funds against other assets in time, auction bridging is usually the practical answer.
Will you tell me if bridging is not the right tool?
Yes. Because the cost is real, we first look at your wider portfolio and assets to see whether there is a cheaper or more practical route — and we won't arrange a bridge we can't see a clean way out of.
Talk to an adviser
Tell us what you are funding and when it has to happen, and we will tell you the cheapest route that actually works — bridge or otherwise. Call 020 7126 8574 or request a call back — we aim to reply within one working day.
Your property may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it. Most bridging loans on investment property are not regulated by the Financial Conduct Authority.
Propertyze is a trading style of City Finance Brokers Ltd, authorised and regulated by the Financial Conduct Authority, FCA No. 766295.
Related bridging finance
Bridging loans · Second-charge bridging · Development exit finance · Pros and cons of bridging