Short-term property finance, arranged at short notice
A bridging loan buys you time — to complete on a purchase before a sale goes through, to win at auction, or to finish works no term lender will fund. We arrange them across the whole of the UK market.
Start an enquiryWhat a bridging loan actually is
A bridging loan is a short-term loan secured against property, usually for somewhere between one and twenty-four months. It exists to cover a gap: you need money now, and a predictable event later — a sale, a refinance, the end of a build — will repay it.
That short horizon changes how lenders think. A term mortgage is underwritten on your income over decades. A bridge is underwritten on two things: the property offered as security, and how credibly you will repay. Lenders call the second one the exit, and it matters more than anything else on the application.
Because bridging is priced monthly rather than annually, the headline numbers look small and add up quickly. A rate of 0.85% a month is a little over 10% a year. It is expensive money used briefly and deliberately, and the right question is never whether it is cheap — it is whether the opportunity is worth the cost of moving fast.
When a bridge is the right tool
These are the situations we are asked about most often. If yours is not on the list, it is still worth a conversation — unusual cases are common in this market.
Breaking a chain
You have found the house you want and your buyer has pulled out or is slow. A bridge lets you complete on the purchase now and repay when your existing home sells, rather than losing the property.
Auction purchases
Auction contracts typically require completion within 28 days, and often 20. No mainstream mortgage moves that fast. Bridging is the standard answer, and lenders in this space are used to the deadline.
Refurbishment and conversion
A property without a working kitchen or bathroom is usually unmortgageable. A bridge funds the purchase and the works, then a term lender refinances it once it is habitable and revalued.
Development exit
A scheme is finished but units have not sold yet, and the development facility is expiring at a higher rate. An exit bridge repays it on cheaper terms and gives you room to sell properly rather than at a discount.
Business cash flow
A short, secured facility against property you already own can cover a stock purchase, a VAT bill or a contract that needs funding before it pays out — often faster than commercial term lending.
Probate and inheritance
Inheritance tax is due before an estate can be distributed, which can leave beneficiaries needing funds against a property they cannot yet sell. A bridge secured on the estate resolves the timing.
How an application runs
- 1
We talk through the case, the security and your exit, and tell you honestly whether it is fundable.
- 2
We approach lenders whose criteria fit and come back with indicative terms to compare.
- 3
You pick the terms; the lender instructs a valuation and issues a formal offer.
- 4
Solicitors complete the legal work and funds are released, often within two to four weeks.
See what a bridge would cost
Our calculator works in gross and net loan, handles retained, rolled-up and serviced interest, and shows the figure that actually reaches your account.
The words lenders will use
Bridging has its own vocabulary, and quotes are hard to compare until it makes sense. This is the short version.
- Gross and net loan
- The gross loan is the whole facility, including fees and any interest held back. The net loan — or net advance — is what actually reaches your account. They can differ by tens of thousands, so always check which one a quote refers to.
- Retained interest
- The lender holds back the full term's interest from the advance at the outset. You pay nothing monthly, but you receive less on day one and the loan has to be grossed up to compensate.
- Rolled-up interest
- Interest is added to the balance each month and settled in one payment at the end. Nothing to pay monthly, and because it compounds it costs slightly more than serviced interest over the same term.
- Serviced interest
- You pay the interest monthly, like a standard interest-only mortgage, so the balance never grows. Lenders will want evidence of income to cover the payments.
- First and second charge
- A first charge means the bridging lender ranks ahead of everyone else against the property. A second charge sits behind an existing mortgage, which is riskier for the lender and therefore priced higher.
- Loan to value (LTV)
- The gross loan as a percentage of the property's value. Most bridging lenders stop between 70% and 75%; going higher usually means offering a second property as additional security.
- Exit
- How the loan gets repaid — nearly always a sale or a refinance. Lenders scrutinise this harder than anything else, because it is what turns a short-term loan into a repaid one.
- Open and closed bridge
- A closed bridge has a fixed repayment date, typically because a sale has already exchanged. An open bridge has no confirmed date and costs more, because the lender is carrying the uncertainty.
What it costs
A bridging quote has more moving parts than a mortgage illustration. These are the ones that show up on nearly every case.
Interest
Quoted monthly. Rates commonly run from around 0.55% to 1.5% a month depending on the security, the loan to value and the strength of your exit.
Arrangement fee
Usually 1% to 2% of the gross loan, added to the facility rather than paid upfront.
Valuation
Paid by you, to a surveyor on the lender's panel. Cost depends on the property's value and type.
Legal costs
You pay your own solicitor and, on most bridging cases, the lender's legal costs too. Worth budgeting for from the start.
Exit fee
Not charged by every lender. Where it applies it is typically around 1% of the loan, or one month's interest.
Broker fee
Disclosed in writing before you apply. You will never find a fee from us buried in the paperwork at completion.
Regulated and unregulated bridging
A bridging loan secured against a property you or an immediate family member live in, or intend to live in, is a regulated mortgage contract. It carries the full protections of Financial Conduct Authority regulation, including a formal suitability assessment and access to the Financial Ombudsman Service.
A loan secured against an investment property, a buy-to-let or a commercial building generally is not regulated. That does not make it unsafe or unusual — most bridging is unregulated — but the consumer protections that apply to a residential mortgage do not apply in the same way, and it is important you know which side of the line your case sits on.
We will tell you which applies to your circumstances before you commit to anything, and we will put it in writing.
Frequently asked
How quickly can a bridging loan complete?
Two to four weeks is typical. A straightforward case with a cooperative solicitor and a prompt valuation can complete in under two. The legal work and the survey are almost always what set the pace, not the lending decision.
Can I get a bridge with poor credit?
Often, yes. Bridging lenders weigh the security and the exit far more heavily than credit history, and many will consider defaults, County Court Judgments or a past bankruptcy. It may narrow the choice of lender and affect pricing, but it rarely rules a case out on its own. Tell us early so we approach the right lenders first.
How much can I borrow?
Most lenders will go to around 70–75% of the property's value on a first charge. Higher is possible where you can offer an additional property as security. There is no upper limit in practice — we place cases from around £50,000 into the millions.
Do I need to make monthly payments?
Not necessarily. With retained or rolled-up interest there is nothing to pay each month, which is why most borrowers choose one of those. Serviced interest, where you do pay monthly, works out marginally cheaper if you have the income to support it.
What happens if I cannot repay at the end of the term?
Speak to us early — well before the term ends. Lenders will sometimes extend, and refinancing onto another facility may be possible. But a bridge that runs past its term attracts default interest at a substantially higher rate, and the lender can ultimately repossess the security. This is precisely why the exit is assessed so carefully at the outset.
Is a bridging loan secured against my home?
Only if you choose to offer your home as the security. Many bridges are secured against an investment property or the property being purchased instead. Wherever the charge sits, that property is at risk if the loan is not repaid.
Before you apply
- A bridging loan is secured against property. Your property may be repossessed if you do not keep up repayments or repay the loan at the end of its term.
- Bridging finance is short-term borrowing and is usually more expensive than a term mortgage. It should not be used as a long-term funding solution.
- Some forms of bridging finance are not regulated by the Financial Conduct Authority. We will confirm in writing whether your case is regulated before you proceed.
Tell us about your case
Eleven questions and about two minutes. If it is not fundable, we will say so.
