A bridging loan is short-term, property-secured finance designed for speed — usually arranged for up to around 12 months, with the interest often retained rather than paid monthly. A mortgage is long-term borrowing repaid over many years. A bridge buys you time to complete or add value; a mortgage funds the property you keep.
At a glance
| Bridging loan | Mortgage | |
|---|---|---|
| Purpose | Completing quickly — auction, chain-break, refurbishment, or property a term lender will not touch yet | Buying or refinancing property you intend to hold for the long term |
| Term | Usually up to around 12 months; up to 24 on some unregulated loans | Repaid over many years |
| Speed | Within days in the right circumstances; a few weeks is normal | Typically weeks to arrange |
| Repayment | Usually one repayment at the end, from a sale or refinance — the exit | Monthly payments throughout the term |
| Interest and fees | Priced monthly — typically from around 0.5% per month — plus an arrangement fee, typically 2% | Priced as an annual rate; fees vary by product and lender |
| Assessment | Led by the property, the loan-to-value and the exit | Led by income and affordability |
| Regulation | Regulated only when secured on a home you live in | A mortgage on your home is FCA-regulated |
What a bridging loan is for
Bridging closes the gap between now and a future event. The classic cases are an auction purchase with a tight completion deadline, a chain break where a purchase must complete before a sale does, and buy-to-refurbish projects where a property needs work before a term lender will mortgage it. The loan is asset-based: the lender lends primarily against the property and a set loan-to-value, with the exit — how you will repay — as the other anchor. Our bridging loans page covers the product in full.
What a mortgage is for
A mortgage funds ownership. It is assessed on income and affordability, repaid monthly over the term, and priced for the long haul — which is why its rates are lower than bridging. The trade-off is pace and flexibility: an application moves at the speed of full underwriting, and the property generally has to be in lettable or habitable condition from day one.
The cost comparison, honestly
The headline rate on a bridge can look high next to a term mortgage, but the two are not comparable: a term mortgage might take weeks to arrange and lose you the property, while a bridge delivers the cash quickly with far less paperwork. Bridging is more expensive than a term mortgage by design — a different product for a different job. If you have the time to use a mortgage, a mortgage will almost always cost less; if you do not, the bridge is what makes the transaction possible. We set out the full fee structure in our bridging loan costs guide.
Can you have both at once?
Yes. A bridge can sit as a second charge behind an existing mortgage, releasing short-term funds without disturbing your current deal. And the two products often work in sequence: bridge to complete, mortgage to repay — the refinance being the exit the bridging lender underwrites against.
Which do you need?
One question settles most cases: do you need to complete faster than a mortgage can move, or fund a property a mortgage will not yet touch? If yes, bridging is the tool — with a clear, evidenced exit. If no, a term mortgage is almost always the cheaper and simpler route. If there is time, we will explore the longer-term options first; we do not bridge for the sake of it.
Frequently asked questions
Is a bridging loan more expensive than a mortgage?
Yes, by design. Bridging is typically priced from around 0.5% per month, rising with risk and urgency, plus an arrangement fee — typically 2% of the loan amount. It is short-term finance for situations where speed or flexibility is worth paying for, not a like-for-like alternative to a term mortgage.
Can I use a bridging loan to buy a house and then get a mortgage?
Yes — that is one of the most common structures. The bridge completes the purchase quickly, and the mortgage refinances it once the property qualifies or the timing allows. The refinance is your exit, and the lender will want to see it evidenced before the bridge is agreed.
Can I have a bridging loan and a mortgage at the same time?
Yes. A bridge can sit as a second charge behind an existing mortgage, so you can raise short-term funds without disturbing your current deal. The combined borrowing still has to fit the lender's loan-to-value limits and needs a clear exit.
How do I repay a bridging loan?
Through the exit agreed at the outset — usually a sale or a refinance onto a term mortgage. Every bridge needs a clear, evidenced way to repay; it is the single most important feature of the loan.
Talk to an adviser
Tell us about the property, the deadline and your planned exit, and we will tell you which product fits — and whether a cheaper route exists. Call 020 7126 8574 or request a call back — we aim to reply within one working day.
Your home may be repossessed if you do not keep up repayments on a mortgage 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.
To put numbers to your own scenario, use our bridging loan calculator — it estimates interest, fees, net advance and LTV.
Related bridging finance
Bridging loans · Bridging loan costs · Pros and cons of bridging · Alternatives to bridging