A bridging loan is short-term finance secured against property — a way to move quickly when timing matters more than the long-term cost of borrowing. It bridges the gap between what you have now and what you need to complete: buying at auction, securing a property before your own sale finishes, refurbishing before you refinance, or acting on an opportunity that won't wait for a standard mortgage.
This page is for investors, developers, landlords and homeowners who need to complete fast or fund a property a mainstream mortgage can't reach. We arrange bridging across a broad lender panel — and because bridging is genuinely flexible, we also check first whether there's a cheaper, more practical way to achieve the same goal before recommending it.
Key facts
- What it is: short-term, property-secured finance, usually arranged for up to around 12 months.
- Speed: can complete quickly — in the right circumstances within days, though a more affordable lender with a full valuation typically takes a few weeks.
- Loan to value: commonly up to around 75% LTV; for purchase-and-refurbish cases borrowers often work nearer 55%-65%, putting in a larger deposit.
- Interest: frequently rolled up (retained) rather than paid monthly, so you repay a larger sum at the end rather than servicing the loan throughout.
- Indicative rates: bridging is typically priced from around 0.5% per month, rising with risk and urgency. It is more expensive than a term mortgage by design — a different product for a different job.
- Exit: every bridge needs a clear, evidenced way to repay — usually a sale or a refinance.
- Regulation: a bridge on a home you live in is a regulated loan with stricter rules; bridging on investment property is generally not regulated by the FCA.
How bridging loans work
Bridging closes the gap between now and a future event. The classic example is an auction purchase, where completion is required within a tight deadline that an ordinary mortgage can't meet. A bridge lets you complete quickly, then repay once your longer-term finance or sale is in place.
The other common use is buy-to-refurbish. A buy-to-let lender generally wants a property habitable and lettable from day one, so a building that needs a kitchen, bathroom, windows or rewiring won't qualify for a term mortgage straight away. A bridge funds the purchase and works, often creating an equity uplift, after which you refinance onto a standard mortgage — frequently recovering much of the cost through the added value if the budget is managed well.
Bridging is asset-based: lenders lend primarily against the property and a set loan-to-value, with the exit as the other anchor. Because it's short-term and fast, it carries higher rates and commercial costs than a mainstream mortgage — which is why it suits situations where speed or flexibility is worth paying for, not as a like-for-like alternative to a term loan.
Who it's for, and the exit that underpins it
Bridging can be used by individuals and companies, on investment property, land (with or without planning), commercial units and residential homes. The single most important feature of any bridge is the exit — how you'll repay it — and the rules differ sharply by type.
On a regulated bridge (a home you'll live in), the term is capped and the lender requires a very firm exit: a property listed for sale on a recognised portal, or a decision in principle from a lender confirming a refinance. Lenders are deliberately cautious here, because it's your home.
On the unregulated side (investment property, whether company or personally owned), there's far more flexibility on acceptable exits — a refinance, the sale of other assets, company profits or dividends, development exit finance, even gifts or family money. The right route depends entirely on your circumstances, and getting the exit right is the part we focus on hardest: we won't arrange a bridge we can't see a clean way out of.
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.
Charges, costs and what to expect
Bridging carries similar cost categories to a mortgage, but with fewer of the incentives. There are no free valuations or free legals as you might get on a remortgage — these are commercial products.
- Valuation and legal costs apply, and you'll usually pay both your own and the lender's legal fees. As a rough planning figure, allow in the region of £800-£1,000 for your own legals, and roughly double that if you're covering the lender's too — amounts that can often be deducted from the loan.
- Interest is most often retained rather than serviced, so you make no monthly payments and instead repay a larger balance at the end. That preserves cash flow during a refurbishment or sale.
- First and second charge: a charge sets the order of repayment if a property is sold or repossessed. A first-charge lender is repaid first; a second charge sits behind it. Where a company owns the property, lenders may also take a floating charge over other company assets — effectively the corporate version of a personal guarantee.
The headline rate can look high next to a term mortgage, but the two aren't 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.
Why a specialist broker helps
We arrange a high volume of bridging and have access to lenders right across the market, so we can approach whoever best fits your asset, timescale and exit. Just as importantly, we don't bridge for the sake of it — because the cost is real, we first look at your wider portfolio and assets to see whether there's a cheaper or more practical route. Where speed is the deciding factor, bridging comes to the front, and we manage it through to completion.
Common situations we handle
- Auction purchases with tight completion deadlines.
- Buy-to-refurbish projects that need work before a term mortgage will lend.
- Chain breaks, where a purchase must complete before a sale does.
- Land and commercial acquisitions outside mainstream mortgage criteria.
- Adverse credit, where lending is asset-based — though the exit (and any planned remortgage) still has to be viable.
The process
- Enquiry. You tell us the property, the purpose and the timescale.
- Sense-check. We confirm bridging is the right tool, or find a cheaper alternative.
- Lender match and exit. We identify the best-fit lender and pressure-test the repayment route.
- Valuation and legals. We progress the valuation and legal work.
- Completion. We see the loan through to drawdown — fast where speed is critical.
Frequently asked questions
What is a bridging loan and how does it work?
It's short-term finance secured on property that bridges the gap between what you have and what you need — letting you complete quickly, then repay via a sale or refinance.
Who can use a bridging loan?
Individuals and companies, on investment property, land, commercial units and residential homes. A bridge on a home you'll live in is regulated and carries stricter terms.
What is an exit strategy?
It's how you'll repay the loan — usually a sale or a refinance. Regulated bridges need a firm, evidenced exit; unregulated investment bridges allow more flexibility, including refinance, asset sales, company profits or development exit finance.
How fast can a bridge be arranged?
Very fast when needed — within days in the right circumstances — but speed costs more. With time to use a more affordable lender and a full valuation, a few weeks is normal.
Can I get a bridge with bad credit?
Often yes, because bridging is asset-based rather than income-based. The severity of any credit issues can affect the choice of lender and the rate, and we still need a viable exit — particularly if you plan to remortgage to repay.
What are first and second charge bridges?
A charge sets who is repaid first from the property. A first charge ranks ahead of a second charge. Where a company owns the asset, lenders may also take a floating charge over other company assets.
Are there alternatives to bridging?
Sometimes — usually raising capital against other assets. But where money is needed quickly, bridging is often the practical answer. If there's time, we'll explore longer-term options first.
Talk to an adviser
Tell us about the property, the deadline and your planned exit, and we'll set out the right way to fund it. 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.
To put numbers to your own scenario, use our bridging loan calculator — it estimates interest, fees, net advance and LTV.
Related bridging finance
Auction bridging · Refurbishment bridging · Regulated bridging · Chain-break bridging · Commercial bridging · Second-charge bridging · Open bridging · Closed bridging · HMO bridging · Land bridging · Buy-to-let bridging · Bridging & development finance in London · Buying next door to knock through · Case study: a bridge that saved a new-build purchase
Bridging guides
Bridging loan costs · How long a bridging loan takes · Bridging loan deposits · Bridging loan vs mortgage · Bridging loan vs development finance · Alternatives to bridging · Pros and cons of bridging