A buy-to-let bridging loan — usually arranged as a bridge to let — is short-term finance for buying or refinancing a property that is not yet ready for a standard buy-to-let mortgage. You purchase and refurbish on the bridge, then exit onto a term mortgage once the property is lettable, often drawing capital back out against the improved value.
This page is for landlords and investors buying property that needs work, completing at auction, or repositioning an asset to raise its rental income. We arrange bridge to let across 135+ lenders, and we structure the exit before the bridge — because the loan is only as good as the way out of it.
Key facts
- What it is: a short-term loan to purchase or refinance a property unsuitable for a normal buy-to-let mortgage, with a pre-agreed exit onto a term product.
- Loan to value: most lenders go to around 75% gross on the bridging element. Because costs and retained interest are deducted up front, plan for a deposit of roughly 30%.
- Term: typically 12 to 18 months. Two years is possible, but rare.
- Interest: usually retained rather than serviced monthly, so there is nothing to pay during the works. The rate depends on the asset, its location, your credit position and the strength of the exit — rates move with the market, so we quote against your actual case.
- The exit: built in on a true bridge to let — the lender underwrites the bridge and the buy-to-let mortgage at the same time.
- Speed: well suited to auction purchases, where completion is usually required within 28 days.
How bridge to let works
A bridge to let is two products underwritten as one. The bridge funds the purchase and refurbishment; the buy-to-let mortgage is agreed at the outset as the exit. Provided the works complete as planned, the term mortgage is waiting — your borrowing at the end is secured, and the lender knows how it will be repaid.
Take a worked example. You buy a property for £100,000 and spend £20,000 on refurbishment. Finished, it should be worth £150,000 and let for £1,000 a month. The lender tests the bridging side first: is the budget realistic, and is the end value likely to be achieved? Then the buy-to-let side: does £1,000 a month cover the loan costs?
The exit mortgage is assessed against the higher post-works value. Refinance against £150,000 rather than £100,000 and part of your capital comes back out, ready for the next purchase.
Who it's for
The common thread is a property a term lender will not touch on day one. Typical cases:
- Refurbishment before letting — the property is lettable but tired and dated, and works will lift both the value and the achievable rent.
- Unmortgageable stock — structural repairs or a condition no buy-to-let lender will accept at purchase.
- Auction purchases — a 28-day completion deadline that a standard mortgage application cannot meet.
- Regulatory upgrades — works that bring a property up to the EPC C standard required for private rented homes by 2030.
The discipline underpinning all of these is the exit. If the refurbishment stalls and you are left with a property that is neither lettable nor saleable, the debt against it remains. We pressure-test the works budget, the end value and the rental assumptions first — viability from the outset is the whole game.
Costs and fees
Always account for a 2% arrangement fee paid to the lender, which is added to the loan. A valuation fee varies with the value of the property but is often around £500 to £1,000; a large asset undergoing major refurbishment needs a more detailed report and will cost more.
Budget around £2,000 for legal costs. With bridging loans you generally pay for both your own and the lender's representation, at roughly £1,000 each. On purchases, factor in the 5% additional-dwelling stamp duty surcharge alongside the loan costs.
Monthly interest is retained from the advance rather than serviced, which is why the usable loan sits below the headline 75%. A bridge costs more than a term mortgage by design; the comparison that matters is not the headline rate but the return — the equity created, the rent unlocked, the capital released at refinance.
The process
- Enquiry. The property, the purchase route and the timescale, plus proof of ID, proof of address, evidence of deposit and your credit report — so we see exactly what the lender will see and pick the right one first time.
- Appraisal. We work up the numbers: the cost of works (two or three builders' quotes, or your own schedule if you have the experience), the expected end value and the likely rent.
- Lender match. Sometimes a single bridge-to-let product is right; sometimes bridging with one lender and exiting with another is more cost-efficient. We compare both routes.
- Valuation and legals. We progress the valuation and legal work through to drawdown.
- Conversion. Works finished, you trigger the switch to the buy-to-let product — revaluation to confirm the works and the value, rent evidenced, underwriting, offer, legals. Relatively painless at that point.
Frequently asked questions
How much deposit do I need for a bridging loan on a buy to let?
Most lenders go to around 75% gross on the bridging portion. With costs and retained interest deducted from the advance, plan for around a 30% deposit in practice.
How much can you borrow on a bridge to let?
The bridge is capped against the value at acquisition or refinance — around 75% with most lenders. The exit mortgage is assessed against the post-works value, so added value means capital back out at refinance.
Can I get a bridge to let with bad credit?
Yes. Bridging is led by the asset and the exit rather than a clean credit file. Provided the property has value, will let, and the rental income covers the exit loan, options exist — though rates and arrangement fees are likely to be higher.
How does the switch to the buy-to-let mortgage work?
Once the property is ready to let, you advise the lender and trigger the conversion. An application goes in, the property may be revalued to confirm the works — particularly after a long refurbishment, when the market may have moved — and the rental income is evidenced.
What are the risks?
The exit failing. Terms are short — typically 12 to 18 months — and interest is higher than a term mortgage, so an unfinished project leaves you holding expensive debt against a property that cannot yet earn. The numbers have to stack up before you start.
Why use a broker for bridge to let?
Some lenders are broker-only, so a broker opens the whole market rather than part of it. We can often negotiate rates and fees, and we will tell you when bridging with one lender and exiting with another beats a single packaged product.
Listen to the episode
Buy-to-let bridging, covered in more depth.
Talk to an adviser
Tell us about the property, the works and the rent you expect, and we will structure the bridge and the exit together. 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
Bridging loans · Buy-to-let mortgages · HMO bridging · Chain-break bridging