Bridging Loans | UK Property Bridging Loans | Fast Bridging Finance

What Is A Bridging Loan?

UK Property Bridging Loans

A bridging loan is a short-term property finance solution designed to help you move quickly when traditional lenders can’t. Terms typically run up to 12 months, and approval is based on having a clear, credible exit strategy — usually a mortgage, remortgage, or the sale of a property or other assets.

Bridging finance is commonly used when you need to buy a new property before selling your existing one, allowing you to cover the funding gap without delays.

These loans are fast, flexible, and suitable for a wide range of property transactions. Clients use bridging loans to:

• Purchase a new home before their current one sells

• Downsize or relocate

• Buy property at auction with completion deadlines

• Renovate, refurbish, or flip a property for profit

Although bridging loans were once seen as a niche tool for developers and seasoned investors, they are now widely used in standard residential and buy-to-let transactions. The speed of approval and versatility make bridging finance a practical option for anyone needing quick, short-term property funding.

How Do Bridging Loans Work?

Bridging loans are designed to move much faster than standard mortgages. They’re secured against property and rely heavily on a clear, provable exit strategy — usually selling an existing property or refinancing with a long-term mortgage.

To qualify, you’ll need:

• Property as security — this may be the property you’re buying, the one you’re selling, or multiple properties.

• A realistic repayment plan — most borrowers exit the loan through a sale or by securing a mortgage.

Because bridging loans are backed by property, the risk to the lender is relatively low compared to unsecured short-term lending. That’s why interest rates are generally more competitive than many other fast-finance options.

How interest works

Interest on bridging loans is charged monthly. If you repay early, you stop paying interest immediately.

Example:
If you take a 12-month bridging loan but repay after 3 months, you only pay 3 months of interest — nothing more.

Borrowers can also choose rolled-up interest, meaning you make no monthly payments during the loan term. Instead, the interest accumulates and is repaid along with the loan balance in one lump sum at the end. This structure is one of the key differences compared to standard secured or personal loans.

Key advantages of bridging finance

Bridging loans offer several benefits for homeowners, investors, and developers:

• High borrowing limits — up to around 80% of the property value (sometimes higher with additional security).

• Speed — funds can be arranged in as little as 72 hours in strong cases.

• Flexibility — suitable for chain breaks, auction purchases, refurbishment projects, downsizing, or buying before selling.

In practical terms, a bridging loan allows you to buy a new property without rushing the sale of your current one, helping you avoid losing out to cash buyers and giving you more control over your timeline.

How Are Bridging Loans Secured? What You Can Use as Security

Security (collateral) is the foundation of any bridging loan. Lenders base their decisions almost entirely on the strength and value of the asset you offer, which is why bridging finance can support larger loan amounts, competitive rates, and flexible terms — even if your credit profile isn’t perfect.

1. Residential Property You Already Own

The most common form of security is residential property. This includes:

• Houses

• Apartments and flats

• Buy-to-let properties

• Properties you’re buying, selling, or refurbishing

For more complex transactions, lenders will also consider semi-commercial property such as mixed-use buildings with both residential and commercial elements.

2. Commercial Property as Security

Many bridging lenders accept a wide range of commercial buildings, including:

• Offices

• Retail units and shops

• Warehouses and storage facilities

• Industrial sites

Commercial assets often unlock higher loan amounts and can support more specialised projects or business-focused transactions.

3. Alternative Assets and Non-Standard Collateral

Some lenders offer even more flexibility by accepting:

• Land — with or without planning permission

• Development sites — including part-built projects

• Property investment portfolios

• Multiple properties cross-secured to raise a higher loan amount

This is especially beneficial for developers, investors, and business owners aiming to fund unique or time-sensitive opportunities.

4. Regulated vs. Unregulated Bridging Security

Unregulated bridging loans — typically used for business, investment, or development — often allow a wider range of acceptable collateral and more flexible lending criteria. These loans are not regulated by the Financial Conduct Authority, so borrowers must review terms carefully and fully understand their obligations.

4 Types of Bridging Loan Exit Strategy

Every bridging lender places major importance on your exit strategy — the plan that shows exactly how you will repay the loan. A strong, credible exit strategy is often the deciding factor in whether your application is approved.

The four most common ways to repay a bridging loan are:

1. Selling an Existing Property

The most widely used exit strategy.
You take out a bridging loan to move forward with a purchase or project, then repay it once your current property sells. This is ideal for chain breaks, upsizing, downsizing, or buying before selling.

2. Securing a Mortgage or Remortgage

Many borrowers exit their bridging loan by moving onto long-term finance.
This could be:

• A standard residential mortgage

• A buy-to-let mortgage

• A remortgage on an existing property

This route is popular when the borrower needs fast access to funds while waiting for traditional lending to complete.

3. Rebridging

Rebridging involves taking out a new bridging loan to repay the original one.
It is not accepted as an intended exit strategy at the application stage, but it can be used if your original plan fails — for example, if a property doesn’t sell in time or mortgage delays occur.

4. Using Savings, Investments, or Inheritance

Some borrowers pay off the loan using personal funds, investment maturity, bonuses, or inheritance.
This can be a clean and fast exit, particularly for high-net-worth individuals or investors who expect liquidity during the loan term.

Are Bridging Loans a Good Idea?

When used in the right circumstances, a bridging loan can be a powerful financial tool, offering speed, flexibility, and control — especially compared to traditional mortgages. For homebuyers, property investors, and developers, bridging finance allows you to act quickly without being limited by cash reserves or lengthy mortgage approvals.

However, deciding whether a bridging loan is right for you isn’t just about comparing interest rates. You need to consider the overall cost, including fees, interest, and potential risk exposure, to understand the true financial impact over the loan term.

In many cases, bridging finance can save money in the long run. For example, it allows you more time to sell your existing property, potentially achieving a better sale price than if you were rushed to complete a transaction.

Ultimately, a bridging loan is suitable if you:

• Have a clear exit strategy

• Are comfortable with short-term costs and interest rates

• Need speed and flexibility in property transactions

Key Advantages of Bridging Loans

• Fast to arrange — funds can often be released in days rather than weeks.

• Flexible security — loan-to-value (LTV) calculations can include multiple properties, including the one you are purchasing.

• Early repayment savings — pay off the loan early and only pay interest for the period used.

• Approval based on security, not credit history — ideal for borrowers with less-than-perfect credit.

• Streamlined exit strategy — no affordability checks or extensive stress testing required.

Potential Drawbacks

• Higher interest rates compared to standard mortgages.

• Additional fees can make the loan more expensive than alternative finance options.

• Lower maximum LTV than traditional mortgages.

• Exit strategy required upfront — you must have a plan to repay the loan.

• Risks if the exit strategy fails — unexpected costs or complications can arise if repayment plans fall through.

Bottom Line

Bridging loans are not a one-size-fits-all solution, but they can provide a fast, flexible, and practical option for property buyers and investors. Always consult an independent financial advisor to determine if a bridging loan is suitable for your specific situation.

Steps to Securing a Bridging Loan: An Example

Bridging Loans UK

John and Helen wanted to upsize their family home and found a 5-bedroom detached property on the outskirts of Bristol priced at £650,000. Their current home was on the market for £450,000, but no offer had yet come in. They also needed a £250,000 mortgage to complete the purchase, which was taking time to arrange.

Worried about losing the property to other buyers, especially cash buyers or those with stronger property chains, they explored the option of a bridging loan.

1. Explore Options with an Independent Adviser

They contacted a bridging loan broker to understand the process, costs, and suitability for their situation. The adviser explained:

• A bridging loan could secure the new property almost immediately.

• The loan could be secured against both properties, keeping the loan-to-value (LTV) ratio at a manageable 75%.

2. Obtain a Free Indicative Quote

The broker compared rates across roughly 100 lenders and presented the best terms, including:

• Monthly interest: 0.8%

• Loan interest: £5,476 per month (only charged for the duration of the loan; early repayment stops interest immediately)

• Option to roll up interest, paying the total sum at the end

• Facility fee: 1.5% (£9,750)

• Admin fee: £150

• Solicitor and valuation fees as applicable

• Broker fee for managing the process: £995

3. Decide If a Bridging Loan Is Right

John and Helen considered the projected costs:

• 6 months bridging loan: ~£45,000

• 12 months bridging loan: ~£75,000

Given that their house wouldn’t need to be sold under pressure and they could potentially achieve a higher sale price, they concluded the loan was worthwhile. The seller even agreed to a £20,000 reduction for a quicker sale using the bridging loan.

4. Get a Decision in Principle

Within 24 hours, the broker secured a Decision in Principle from the lender. This was sent to the seller’s estate agent, reinforcing John and Helen’s position as serious buyers.

5. Make an Offer as a Cash Buyer

With the bridging loan Decision in Principle, they could act like cash buyers. Their offer on the new property was accepted, giving them a competitive advantage in the market. The broker guided them through all the necessary paperwork.

6. Submit the Full Application

The broker managed the entire bridging loan application process, coordinating with the lender, solicitors, surveyors, and the seller’s agents, while keeping John and Helen updated at every step.

7. Secure the New Property

Two weeks later, the funds were released, and John and Helen completed the purchase. They now had ample time to sell their existing property and arrange a mortgage for the new home, with support from their mortgage advisers.

Conclusion

This example illustrates how bridging loans provide speed, flexibility, and security in property transactions, allowing buyers to act decisively in competitive markets. Working with an experienced broker ensures a smooth process and access to the best loan terms.

How Much Does a Bridging Loan Cost?

The total cost of a bridging loan is made up of interest on the borrowed funds plus various fees. The exact cost depends on your loan size, the complexity of your case, and the type of property involved.

Typical Bridging Loan Costs

• Interest rates – calculated monthly rather than annually, so you only pay for the months you hold the loan.

• Valuation fee – automated valuations can be negotiated from £99 for properties up to £1 million.

• Legal fees – typically around £850.

• Broker fees – usually £995, varying based on complexity.

• Facility/arrangement fees – often 2% of the loan amount.

• Drawdown fee – typically £295, if applicable.

• Exit fees – can be around 1.25% of the loan, though reputable brokers often avoid lenders that charge them.

Why Monthly Interest Matters

Because bridging loans are short-term, interest is charged monthly, not annually. If you repay early, you stop paying interest immediately. This makes bridging finance more flexible than a traditional mortgage, even if the rates are higher.

Factors That Affect Your Bridging Loan Rates

• Loan-to-value (LTV) – higher LTV can increase rates.

• Loan size and duration – larger loans over £750,000 may attract lower rates.

• Property condition and purpose – refurbishments or development projects may affect pricing.

• Regulated vs. unregulated loans – unregulated bridging loans may have different terms.

• Property location – location can influence lender risk assessments.

• Credit history – affects lender approval and rates.

Is a Bridging Loan Worth It?

While bridging loan interest rates are higher than standard mortgages, the short-term nature often makes them cost-effective for securing urgent property deals or investment opportunities.

For many clients, the loan pays for itself: profits from refurbishing an existing property or selling at full market value often cover the cost of the bridging loan, while giving them the flexibility to act quickly in a competitive market.

How Much Can I Borrow with a Bridging Loan?

With a bridging loan, you can borrow up to £25 million, depending primarily on the value of the asset used as security. Lenders assess your application based on the current market value of the property or asset offered, and your loan-to-value (LTV) ratio determines the maximum loan amount.

Typical Loan-to-Value (LTV) Ratios

Most bridging loans are available up to 75% LTV, though this can vary depending on:

• Property type (residential, commercial, mixed-use)

• Your planned exit strategy

• The lender’s risk appetite

Costs and Considerations

When securing a bridging loan, it’s important to factor in:

• Arrangement fees

• Administration fees

• Interest rates

Borrowers with a less-than-perfect credit history may face higher rates or stricter lending criteria.

Why Compare Bridging Loans

Comparing offers from multiple lenders is essential to find the best terms for your circumstances. Expert guidance ensures you understand:

• Accepted types of collateral

• How LTV affects your borrowing capacity

• Total costs and fees

At Platinum Global Bridging Finance, our independent, whole-of-market service helps you find bridging loans secured against a wide range of properties and assets. We provide clear advice so you can make informed decisions and secure the right financing quickly and efficiently.

How Quickly Can I Get a Bridging Loan?

Bridging loans are designed to provide fast access to finance, and in some cases, funds can be arranged in as little as 72 hours.

However, not all bridging loans are this fast. Speed depends on factors such as your financial situation, the type of property involved, and the lender’s processes. Using a bridging loan broker can help expedite your application, though it may incur additional fees from lenders or solicitors for fast-tracking your case.

On average, most bridging loans take 3 to 6 weeks to complete, which is a standard timeframe for processing and securing funds.

Bridging Loan Criteria and How to Apply

Each UK bridging loan lender has its own criteria, and some specialise in niche areas. While requirements vary, the two essential criteria are:

1. Security or Deposit – The loan must be secured against one or more assets, typically property.

2. Exit Strategy – Lenders require a clear plan to repay the loan by the end of the term, usually through selling the property, refinancing with a mortgage, or using another property.

Because bridging loans are asset-secured, lenders usually do not require proof of income, and your credit history has less impact on approval. Even borrowers with bad credit may be eligible, though interest rates could be higher.

Other Key Criteria

• Minimum age: 18 years old

• Some specialist products have no maximum age limit

• Loan must be used to purchase, refinance, or refurbish residential or commercial property

• Borrowers must have a UK address (UK expats are eligible)

• Available for individuals, limited companies, partnerships, and offshore companies

Why Use a Bridging Loan Broker?

A bridging loan broker can guide you through the process, compare products across the whole market, and secure the best deal for your circumstances. Brokers provide expertise on:

• Eligibility requirements

• Loan options and terms

• Exit strategies

• Lender selection and fees

Bridging Loan Terms

Most bridging loans have a minimum term of one month, with the exact length depending on the lender and product type. Short-term flexibility allows borrowers to act quickly while planning their long-term financing.

Example Uses of a Bridging Loan

Bridging loans are highly versatile and can be used in a variety of property and financial scenarios. Here are the most common ways people use bridging finance:

1. Bridging Loan to Buy a New Residential Property

A bridging loan allows you to purchase a new home before selling your existing property, effectively bridging the gap in funding.

Benefits include:

• Acting as a cash buyer, making your offer more attractive to sellers.

• Up to 12 months to sell your current home, avoiding rushed sales or price reductions.

• The option to fund refurbishments on your old property to increase its value before selling.

A clear repayment plan, typically through the sale of your existing property, is essential to settle the bridging loan on time.

2. Bridging Loan to Downsize

Downsizing with a bridging loan can free up additional funds from the equity of your existing property.

For example, selling a £500,000 home and buying a £350,000 property could leave £150,000 to cover:

• Moving costs

• Renovations on your current or new home

• Legal fees

Bridging lenders will assess any existing loans on your property, and an open bridging loan may be suitable if your exit strategy is uncertain.

[Read our guide: How A Bridging Loan Can Help You Downsize Your Home In Retirement]

3. Bridging Loan to Fix a Chain Break

If a buyer pulls out at the last minute, a bridging loan can act quickly to prevent losing your new property.

Unlike standard mortgages, bridging loans do not require lengthy affordability checks, and funds can often be arranged within 2 to 6 weeks, or as fast as 3 working days in some cases.

[Read our guide: How To Use A Bridging Loan To Buy A House Before Selling]

4. Bridging Loan to Buy an Unmortgageable Property

Bridging loans are ideal for properties that cannot be mortgaged, such as uninhabitable homes, development sites, or properties needing structural work.

Investors can:

• Purchase the property using a bridging loan

• Develop or refurbish it to mortgageable standards

• Refinance with a standard mortgage or sell for profit

[Read our guide: How to Get Finance to Buy an Uninhabitable Property]

5. Bridging Loan to Buy a Property at Auction

Auction purchases typically require completion within 28 days, too fast for standard mortgages.

Bridging finance provides rapid funding, with repayment through:

• Refinancing via a mortgage

• Selling the property

Bridging lenders understand the urgency of auctions and can release funds quickly to secure the property.

6. Bridging Loan to Extend the Deadline of an Interest-Only Mortgage

High-value, interest-only mortgages may take months to sell due to the property’s unique nature.

A bridging loan can:

• Extend your repayment deadline by up to 12 months

• Allow you to avoid lowering the property price to force a quick sale

• Be repaid upon sale or via refinancing

7. Bridging Loan to Pay for Care Fees

Bridging loans can cover short-term care costs for family members when immediate funds are required.

Benefits include:

• Paying initial care fees and moving costs

• Funding necessary property refurbishments

• Repaying the loan when the property sells, often with lower interest rates than a standard mortgage

This provides peace of mind and financial flexibility during stressful situations.

8. Bridging Loan to Flip a Property (Bridge-to-Let)

Property development bridging loans are increasingly popular in the UK, particularly for renovation projects, flips, and new builds.

Whether you’re an experienced developer or just starting out, a bridging loan can provide short-term development funding without liquidating your existing assets.

How it works:

1. Purchase your development property with a short-term bridging loan.

2. Use the loan to complete renovation or refurbishment work.

3. Sell the property for a profit, covering your development costs, bridge financing fees, and generating income.

Bridge-to-let finance is also available for landlords looking to expand their buy-to-let portfolio quickly.

Interest is often rolled up into the loan value, meaning no monthly repayments are required, allowing you to preserve cash flow for your project.

[Read our full guide: How to Use Refurbishment Loans to Buy and Sell a House]

9. Bridging Loan for a Commercial Development Project

Commercial bridging loans are tailored for scenarios where a business or income-generating property needs short-term finance before traditional lending is possible.

For example, if your business is not yet generating income, a commercial mortgage may not be available. A bridging loan can:

• Secure the property to start your business

• Include development finance for setup and improvements

• Refinance later with long-term funding once revenue is established

Step-by-step process:

1. Use a bridging loan to purchase the commercial property.

2. Allocate funds for development or conversion – e.g., turning vacant buildings into holiday lets.

3. Once income is established, refinance with a traditional mortgage, repaid via the business revenue.

For commercial developments, a closed bridging loan may be suitable, with repayment tied to a fixed completion or exit date, such as the sale of the property or investment maturity.

Early consultation with an adviser is recommended to assess feasibility and maximise your chance of securing finance.

How We Work

1. Get a Customised Quote

Our independent bridging specialists review your situation in detail to assess whether your plans are achievable. We provide a clear overview of terms, costs, and whether a bridging loan is the right solution for you.

2. Secure a Decision in Principle

We run a whole-of-market comparison to find the best deal for your circumstances. Within 24–48 hours, we can secure a Decision in Principle from a lender, which you can present to estate agents and property sellers to demonstrate your buying power.

3. Submit Your Application

Once your offer is accepted, we submit your bridging loan application and initiate the valuation and legal processes. Acting as a proactive intermediary, we ensure the transaction progresses efficiently and resolve any issues that arise.

4. Finance Your Purchase

We remain fully engaged until the funds are released and your transaction is complete. Our expert advisors are available throughout the loan process to answer questions and provide guidance, giving you peace of mind from start to finish.

Frequently Asked Questions

What are some alternatives to bridging loans?

Alternatives include traditional mortgages, remortgages, personal loans, or using savings and investment funds. The best option depends on speed, flexibility, and your exit strategy.

Is there an age limit on bridging loans?

Most lenders require borrowers to be at least 18 years old. Some specialist lenders have no maximum age limit, particularly for residential bridging loans.

Do banks still do bridging loans?

Yes, but banks tend to offer them under stricter criteria and longer timeframes than specialist bridging lenders. Many borrowers now use brokers to access a wider range of lenders.

Are bridging loans regulated?

Residential bridging loans in the UK are usually regulated by the Financial Conduct Authority (FCA), while commercial or development bridging loans are often unregulated. Always confirm with your lender.

Are bridging loans safe?

Bridging loans are secured against property or other assets, which reduces risk for lenders. They are generally safe if you have a clear exit strategy and understand the costs involved.

Repayments

Can you turn a bridging loan into a mortgage?

Yes. Many bridging loans are repaid by refinancing with a standard mortgage once the property or project meets lender requirements. This is a common exit strategy.

What are bridging loan exit strategies?

Exit strategies include selling an existing property, refinancing with a mortgage, using savings or investments, or, in some cases, rebridging if the initial strategy fails.

Do you pay monthly instalments on a bridging loan?

No. Most bridging loans roll up the interest into the loan, allowing repayment in a lump sum at the end of the term. Some lenders may offer interest-only payments if required.

How are bridging loans paid?

Bridging loans are typically repaid in full at the end of the term using the proceeds from your chosen exit strategy, such as a property sale or mortgage refinance.

Deposits and Terms

What is the longest bridging loan term?

Most bridging loans have a maximum term of 12 months, although some lenders may offer extensions up to 18–24 months depending on the exit strategy.

How short-term are bridging loans?

Bridging loans can be arranged for as little as 1 month, making them ideal for fast transactions like auctions or urgent property purchases.

Can I get 100% bridging finance?

While some specialist lenders may offer full value bridging loans in exceptional circumstances, most bridging loans are limited to 70–75% LTV. Higher LTVs usually carry higher costs.

Do you need a deposit for a bridging loan?

You generally do not need a cash deposit if you have sufficient security in property or assets. The loan is secured against collateral, which reduces the need for upfront deposits.

Miscellaneous

What are net vs gross bridging loan calculations?

Gross bridging loan refers to the total loan value, while net bridging loan is the amount you receive after fees, interest, and other costs are deducted. Understanding the difference is crucial for cash flow planning.

What is the difference between first-charge and second-charge bridging loans?

A first-charge loan has priority over any other loans secured against the property, while a second-charge loan is subordinate. Second-charge loans usually carry higher interest rates due to increased risk.

Do you need a valuation for a bridging loan?

Yes. Lenders will typically conduct a property valuation to determine market value and calculate your loan-to-value ratio, ensuring adequate security for the loan.

Can you get a bridging loan with bad credit?

Yes. Lenders focus more on the property or asset security and exit strategy than your credit history. However, bad credit may result in higher interest rates or stricter conditions.

Does a bridging loan make you a cash buyer?

Yes. Bridging loans allow you to act as a cash buyer, making your offer more attractive to sellers, especially in competitive markets or when acting quickly is essential.

Bridging Loans – Cities in The UK That Our Lenders Offer Financing

Bridging Loans – United Kingdom

1. London
2. Birmingham
3. Manchester
4. Glasgow
5. Leeds
6. Newcastle
7. Sheffield
8. Liverpool
9. Bristol
10. Edinburgh
11. Cardiff
12. Belfast
13. Nottingham
14. Southampton
15. Leicester
16. Brighton and Hove
17. Plymouth
18. Reading
19. Bradford
20. Stoke-on-Trent

Bridging Loans – Scotland

1. Glasgow
2. Edinburgh
3. Aberdeen
4. Dundee
5. Inverness
6. Stirling
7. Perth
8. St. Andrews
9. Paisley
10. Kirkcaldy
11. Ayr
12. Greenock
13. Livingston
14. Cumbernauld
15. Hamilton
16. Dunfermline
17. East Kilbride
18. Coatbridge
19. Falkirk
20. Kilmarnock

Bridging Loans – Ireland

Northern Ireland:

1. Belfast
2. Derry/Londonderry
3. Lisburn
4. Newry
5. Craigavon
6. Bangor
7. Newtownabbey
8. Ballymena
9. Newtownards
10. Carrickfergus

Republic of Ireland:

1. Dublin
2. Cork
3. Limerick
4. Galway
5. Waterford
6. Drogheda
7. Swords
8. Dundalk
9. Bray
10. Navan

Bridging Loans – Wales

1. Cardiff
2. Swansea
3. Newport
4. Wrexham
5. Barry
6. Neath
7. Cwmbran
8. Llanelli
9. Merthyr Tydfil
10. Bridgend
11. Port Talbot
12. Pontypridd
13. Aberdare
14. Colwyn Bay
15. Rhyl
16. Penarth
17. Bangor
18. Prestatyn
19. Llandudno
20. Carmarthen