Bridging Loans | UK Property Bridging Loans | Fast Bridging Finance

Bridging Loans — Fast, Flexible Property Finance

UK Property Bridging Loans

You’ve found the property. The seller wants a quick exchange. Your mortgage won’t complete in time — or maybe a mortgage isn’t even an option right now. That’s where bridging comes in.

A bridging loan gives you short-term access to capital secured against property, so you can move when opportunity demands it. Whether you’re breaking a chain, buying at auction, funding a refurbishment, or acquiring commercial premises ahead of a competitor, a bridge gets you from where you are now to where you need to be — fast.

We arrange bridging loans from £250,000 to £25 million across residential, commercial, land, and development property. Rates start from 0.55% per month, LTVs go up to 75% (80% with additional security), and we can have funds with your solicitor in 3 – 7 working days on straightforward cases. No broker fee on facilities of £500k or above.

Want to see what your deal might cost? Use our bridging loan calculator for an instant estimate — or keep reading to understand how bridging works and whether it’s right for your situation.

Is Bridging Right for Your Situation?

Bridging works when you need to move faster than traditional finance allows, or when the property itself doesn’t qualify for a standard mortgage yet. Here are the situations where we see clients using bridges most often:

You’re buying before your current property sells

This is the classic chain-break scenario. You’ve found the right property but your existing home is still on the market — or it’s sold subject to contract and completion is weeks away. A bridge lets you buy now and repay when your sale completes. No more losing out because someone else can move faster.

You’ve won at auction

Most auctions give you 28 days to complete. A high street mortgage won’t get there. Auction bridging is designed for exactly this — we can complete well within the deadline, and the exit is usually a refinance onto a buy-to-let or residential mortgage once the dust has settled. If you’re a regular auction buyer, having a decision in principle from a bridging lender before you bid gives you the confidence to raise your paddle knowing the finance is lined up.

The property needs work before it’s mortgageable

Banks won’t lend on properties without a working kitchen, bathroom, or heating. If you’re buying something that needs renovation — whether it’s cosmetic freshening or a full structural overhaul — a bridge funds the purchase and the works. Once the refurbishment is done and the property meets lending standards, you refinance onto a conventional mortgage. We can stage the drawdowns so refurbishment funds are released as works progress.

You need to move quickly on a commercial deal

Commercial property transactions are often competitive and time-sensitive. If a vendor wants a fast exchange or you’re up against cash buyers, waiting 8 – 12 weeks for a commercial mortgage can cost you the deal. A commercial bridge gives you the speed to compete.

You’re a developer needing exit finance

If you’ve completed a development and your units are selling but the development loan is expensive to hold, a development exit bridge replaces it with a cheaper facility while the sales programme plays out. It cuts your holding costs during what’s often the most cash-intensive phase of a project.

You need to settle a tax bill or estate obligation

HMRC deadlines don’t wait for property sales. If you’ve got an inheritance tax demand, a CGT liability, or a business tax bill and your capital is tied up in property, a bridge raises the cash you need while you arrange a more permanent solution.

Bridging Loan Rates — What Drives Your Rate in 2026

Bridging rates in the UK currently range from around 0.55% to 1.5% per month, depending on the specifics of your deal. That’s a wide range, and where you land within it comes down to a handful of factors:

Loan-to-value. This is the biggest driver. A bridge at 50% LTV will be significantly cheaper than one at 75% LTV, because the lender has more headroom if property values drop. If you can put up more equity — either cash or a second property — it directly reduces your rate.

Property type and location. A standard residential property in a liquid market (London, Manchester, Birmingham) attracts the keenest rates. Commercial property, land, rural locations, and non-standard construction all push rates higher because the lender sees more risk in recovering their money if things go wrong.

Exit strategy strength. A closed bridge with exchanged contracts attracts a better rate than an open bridge with no buyer yet. The stronger and more certain your exit, the lower the rate.

First charge vs second charge. First charge bridges (where no other lender sits ahead of them) are cheaper than second charges, because the lender gets paid first if the property is sold.

Loan size. Larger loans often attract slightly lower rates. A £5 million bridge may be priced tighter than a £300,000 one, because the lender earns more in absolute terms.

Borrower profile. Experienced property investors and developers with a track record of successful projects tend to get better rates than first-time borrowers. Adverse credit history will push rates up, though it won’t necessarily prevent you from borrowing.

Our rates start from 0.55% per month — but the rate you’ll actually pay depends on the combination of factors above. The best way to find out is to speak to us or use our calculator for an instant indicative quote.

What It Actually Costs — Beyond the Headline Rate

Bridging is more expensive than a mortgage — that’s the trade-off for speed and flexibility. But the total cost depends on how long you hold the loan, not just the rate. A bridge held for 3 months at a higher rate can cost less in absolute terms than a mortgage held for 25 years at a lower one. What matters is whether the bridge enables a transaction that’s worth more than the cost of the finance.

Here’s what makes up the total cost:

Monthly interest — from 0.55%. This is charged per month, not per year. On a £1 million loan at 0.65% per month, that’s £6,500 per month. Most borrowers roll the interest up (it accrues and is paid at exit along with the principal), so there are no monthly outgoings during the term. If you repay early, you only pay interest for the months you’ve held the loan — interest stops the day you exit.

Arrangement fee — typically 1 – 2% of the loan. Charged by the lender, usually deducted from the advance or added to the loan. On a £1 million bridge, a 1.5% fee is £15,000.

Valuation — £500 to £3,000+ depending on property value, type, and location. Required by every lender. Some lenders accept desktop valuations for properties under £1 million, which are faster and cheaper.

Legal fees — £1,000 to £3,000+ per side. You’ll pay both your own solicitor and the lender’s solicitor. Some lenders allow dual representation (one firm acting for both sides), which can reduce costs and speed things up.

Exit fee — 0 to 1%. Not all lenders charge this. We actively seek out lenders with no exit fees where possible.

Broker fee — none on facilities of £500k+. We don’t charge a broker fee on bridging facilities of £500,000 or above.

A realistic worked example

£1.2 million residential bridge at 0.65% per month, 1.5% arrangement fee, held for 5 months with rolled-up interest:

Interest: £1.2m × 0.65% × 5 = £39,000. Arrangement fee: £18,000. Valuation: ~£1,500. Legal fees: ~£4,500 (both sides). Total cost: approximately £63,000. That’s the real, all-in number — not a headline rate with hidden extras.

Want to run your own numbers? Our bridging loan calculator gives you an instant breakdown based on your specific loan amount, rate, and term.

How Much Can You Borrow?

The amount depends on two things: the value of the property you’re securing the loan against, and the LTV the lender is comfortable with.

“Additional security” means offering a second property as collateral alongside the one you’re purchasing. This reduces the lender’s risk and can push the LTV above the standard 75% ceiling. It’s commonly used by portfolio landlords or homeowners who own their current property outright and are buying the next one.

The Exit Strategy — Why It Matters More Than Anything Else

Every bridging lender wants to know one thing above all: how are you going to repay this loan?

Your exit strategy is the single most important factor in getting approved. A strong, credible exit will get you better rates and faster decisions. A weak or vague exit will slow things down or get you declined — even if the property is excellent and the LTV is conservative.

The most common exits we see:

• Sale of the purchased property: You’re buying, improving, and selling. The lender wants to see evidence that your target sale price is realistic — comparable sales data, agent appraisals, and a sensible timeline.
• Sale of another property: You’re buying a new home and selling your existing one. If your current property is already under offer or exchanged, this is a strong exit. If it’s not yet listed, the lender will be more cautious.
• Refinance onto a mortgage: You’re buying a property that will qualify for a mortgage once a specific condition is met — refurbishment is complete, planning is granted, or you simply need more time than a mortgage application allows. The lender will want to see that you’re likely to qualify for the replacement mortgage.
• Receipt of confirmed funds: An inheritance being administered, a business sale completing, an investment maturing, or a legal settlement. The lender needs evidence that the funds are real, confirmed, and arriving within the loan term.

We help you present your exit strategy in the way lenders want to see it. A well-packaged application with a clear, evidenced exit can be the difference between completing in a week and spending a month going back and forth.

Open Bridges vs Closed Bridges

A closed bridge has a confirmed exit date — contracts exchanged on a sale, a mortgage offer ready to draw down, a confirmed maturity date on an investment. Because the lender knows exactly when they’ll be repaid, closed bridges attract better rates.

An open bridge has a planned exit but no confirmed date. Your property is listed but hasn’t sold yet. You’re planning to refinance but haven’t applied for the mortgage. Most bridges we arrange are open — and lenders are perfectly comfortable with that, provided the exit strategy is credible and the property is in a saleable location.

The practical difference in cost between open and closed is often smaller than people expect. If your exit is plausible and your LTV is sensible, most lenders won’t penalise you heavily for running an open bridge.

First Charge and Second Charge — Which Do You Need?

If the property has no existing mortgage or lending against it, your bridge will be a first charge — the lender has first claim on the property if anything goes wrong. This is the most common structure and gets you the best rates.

If the property already has a mortgage on it and you don’t want to disturb that arrangement, you can take a second charge bridge. The existing mortgage lender keeps priority, and the bridge lender sits behind them. Second charges carry higher rates because the lender has less security, but they’re useful when you want to unlock equity in a property without refinancing the whole thing — for example, raising a deposit for a second purchase while keeping your existing residential mortgage in place.

Regulated vs Unregulated — Which Applies to You?

This isn’t a choice you make — it’s determined by how the property will be used.

If the property being used as security is or will be your home (or the home of a close family member), the loan is regulated by the FCA. Regulated bridging gives you additional consumer protections, including a mandatory reflection period. It applies to chain-break purchases, downsizing, and situations where you’re buying your next residence.

If the property is for investment, buy-to-let, commercial, or development purposes, the loan is unregulated. The vast majority of bridges we arrange fall into this category. Unregulated doesn’t mean unsafe — it simply means the transaction is between sophisticated parties and doesn’t require the same consumer protections as residential owner-occupier lending.

For more detail, see our dedicated pages on regulated bridging and unregulated bridging loans.

What Lenders Actually Look At

Bridging lenders think differently from mortgage underwriters. They’re not running affordability models based on your salary. They’re assessing three things:

The property. Is it in a location where it will sell if they need to recover their money? Is the valuation supportable? Is there anything unusual about the title, construction, or planning status that creates risk? Properties in strong, liquid markets with conventional construction get the fastest decisions.

The exit. Is the repayment plan credible and achievable within the loan term? Can the borrower demonstrate that the exit is realistic — with evidence, not just optimism?

The borrower. This matters less than in mortgage lending, but it’s not irrelevant. Lenders look at your experience (particularly for refurbishment and development), your credit history (adverse credit is workable but affects terms), and your overall financial position. They’re asking: is this person capable of executing the plan they’ve described?

Importantly, income verification is far less onerous than for a mortgage. Many bridging lenders don’t require proof of income at all — the lending decision is driven by the asset and the exit, not your payslips.

The Risks — What Can Go Wrong

Bridging loans are powerful tools, but they carry real risks that you need to understand before borrowing. We’d rather lose a deal than put a client into a facility that doesn’t make sense for their situation.

Your exit could be delayed

If your property doesn’t sell on time or your mortgage refinance falls through, you’re stuck with a loan that’s accruing interest every month. Most lenders will extend, but extensions come with additional fees and the interest keeps rolling. A 6-month bridge that turns into a 14-month bridge can end up costing significantly more than you planned.

Rolled-up interest compounds your debt

When interest is rolled up, it’s added to your outstanding balance each month. That means you’re paying interest on interest. On a large loan held for a long time, this compounds quickly. A £2 million loan at 0.75% per month held for 12 months with rolled-up interest means you owe approximately £2,187,000 at exit — not £2,180,000 — because each month’s interest is calculated on a slightly higher balance. On shorter terms this effect is minimal, but it’s important to understand before committing.

You could lose the property

A bridging loan is secured against real estate. If you can’t repay and the lender enforces, they will take possession of the property and sell it. This is the worst-case scenario, but it happens — usually when borrowers take on projects without a realistic exit or overestimate what a property will sell for after refurbishment.

The total cost can surprise people

The headline rate looks manageable — 0.65% per month sounds modest. But once you add the arrangement fee, valuation, legal fees on both sides, and potentially an exit fee, the all-in cost is higher than many borrowers expect. Always calculate the total cost, not just the monthly rate. Our bridging loan calculator helps with this.

How to protect yourself

The best protection is a realistic exit strategy, a conservative LTV (don’t max out the borrowing just because you can), and a loan term that gives you breathing room. If your exit depends on a property selling in 3 months, take a 9-month bridge so you have contingency. Spend the extra few months of retained interest on peace of mind, not on scrambling to avoid default.

Pros and Cons of Bridging Finance

The advantages

• Speed: Funds available in 3 – 7 working days on straightforward deals. No other form of property finance comes close.
• Flexibility: Works on properties that are unmortgageable — derelict, no kitchen, no bathroom, structural issues, change-of-use projects. Lenders look at what the property will be worth, not just what it’s worth today.
• No monthly payments required: With rolled-up or retained interest, you don’t need income during the loan term. This is ideal for refurbishment projects where cash flow is going into the build, not into servicing debt.
• Accessible with adverse credit: Many lenders accept CCJs, defaults, and missed payments. The focus is on the property and exit, not your credit score.
• Breaks the chain: Buy your next home before selling your current one, so you don’t lose the property to a faster buyer.
• No early repayment penalties on most facilities: Repay as soon as your exit is ready and interest stops immediately. You only pay for the time you use the loan.

The disadvantages

• Expensive: Monthly rates of 0.55% – 1.5% per month are significantly higher than mortgage rates. Even a short-term bridge has fees (arrangement, valuation, legal) that add up.
• Risk of repossession: If you can’t repay, the lender will enforce against the secured property. Unlike an unsecured loan where the consequences are financial, with bridging you can lose a physical asset.
• Compounding costs if delayed: If your exit takes longer than planned, every extra month of interest increases the total cost. There’s no cap on how long interest can accrue (within the loan term).
• Requires a viable exit: You can’t take a bridge without a clear plan for repayment. If your exit is speculative or uncertain, most lenders will decline.
• Fees are front-loaded: Arrangement fees, valuation, and legal costs are payable even if the deal falls through after the lender has committed resources. These are sunk costs.

Alternatives to Bridging Loans

A bridge isn’t always the right tool. Depending on your situation, one of these might be cheaper, less risky, or better suited:

Remortgaging your existing property. If you need to raise capital and have equity, remortgaging is slower (4 – 8 weeks) but cheaper in the long run. It works when you don’t need the speed that bridging offers.

A let-to-buy mortgage. If you’re buying a new home before selling your current one, a let-to-buy converts your existing residential mortgage to a buy-to-let, releasing equity for your deposit. It avoids the cost of bridging but requires your current property to be lettable and the rental income to cover the mortgage.

A secured loan (second charge mortgage). If you need to raise capital against a property you already own, a second charge mortgage is cheaper than bridging but slower. It’s a long-term commitment rather than a short-term facility.

A personal or business loan. For smaller amounts (under £100,000), an unsecured loan may be cheaper and doesn’t put your property at risk. The amount you can borrow is limited and tied to your income and credit score.

Negotiating a longer completion. Before committing to bridging costs, consider whether the vendor will accept a longer timeline. Sometimes the simplest solution is the cheapest one. Not all vendors are in a rush, and a 3-month completion might be achievable without any bridging at all.

If you’re not sure which route is right, talk to us. We’ll be honest about whether bridging makes sense — or whether a different approach would save you money.

Bridging for International Buyers

If you’re based overseas and purchasing UK property, bridging can be faster and simpler than trying to arrange a UK mortgage from abroad. We regularly work with expats, foreign nationals, and international investors buying residential and commercial property in the UK.

We also arrange bridging for property in selected international markets. For country-specific detail, see:

• International Bridging Finance
• Ireland · Spain · France · Germany · Switzerland · Singapore

How We Work

We’re independent — not tied to any lender — and we’ve been doing this for over 15 years. When you call us, you speak to someone who arranges bridging finance every day, not a call centre.

Here’s what the process actually looks like:

You tell us what you need. The property, the numbers, the timescale, and how you plan to repay. This initial conversation takes 15 – 20 minutes, and there’s no obligation.

We come back to you within 24 hours with indicative terms from across our panel of 100+ specialist lenders. Not a generic quote — a tailored recommendation based on who’s best placed for your specific deal right now.

Once you’re happy, we move fast. We obtain the decision in principle, instruct the valuation, coordinate the solicitors, and chase everything through to completion. We manage the process so you don’t have to chase five different parties yourself.

Funds land with your solicitor. On a straightforward deal, that’s 3 – 7 working days from first conversation to money in the account. More complex cases — commercial property, multiple securities, development elements — typically take 2 – 4 weeks.

Common Questions

How fast can you actually complete?

3 – 7 working days on a clean residential deal where the valuation is straightforward and the solicitors are responsive. The bottleneck is almost always the legal work and the valuation, not the lending decision. If your solicitor specialises in bridging, things move faster.

What if I have bad credit?

It’s not a deal-breaker. Many bridging lenders accept CCJs, defaults, and missed payments. You’ll likely pay a slightly higher rate and the LTV may be lower, but the facility is still available. We work with lenders who specialise in adverse credit bridging — they look at the property and the exit, not your credit score.

Do I have to make monthly payments?

Usually not. Most bridges are structured with rolled-up interest — the interest accrues during the term and gets paid in full when you exit. No monthly payments, no direct debits. Some borrowers prefer to service the interest monthly to reduce the total cost, and that option is available too.

What happens if my exit is delayed?

If your property hasn’t sold or your refinance isn’t ready when the term expires, most lenders will consider an extension. There’ll be additional fees and the interest keeps accruing, but you won’t automatically lose the property. That said, the best protection against this is a realistic exit strategy and a sensible loan term from the start — something we help you get right upfront.

Can I borrow 100% of the purchase price?

Not against a single property — maximum LTVs are 75 – 80%. But if you have equity in another property, you can use it as additional security to effectively fund 100% of the purchase. This is common with portfolio landlords who cross-charge an existing asset to cover the deposit on a new acquisition.

Is bridging only for property investors?

No. We arrange bridges for homeowners (chain breaks, downsizing), business owners (commercial premises, tax bills), developers (land acquisition, exit finance), and private individuals (probate, estate settlement). If you need capital quickly and you have property to secure it against, bridging can work regardless of whether you’re an investor.

What’s the difference between bridging and development finance?

Bridging is short-term lending against existing property value. Development finance is project-based lending that funds construction costs and is drawn down in stages as building work progresses. If you’re buying a site and building on it, you probably need development finance. If you’re buying a property and doing light-to-heavy refurbishment, bridging with staged drawdowns is usually the right tool. See our development finance page for more on the distinction.

Do I need a deposit?

Yes — the deposit is the gap between the property value and the loan amount. At 75% LTV, you need 25% of the purchase price as equity (either cash or equity in another property). The deposit doesn’t have to come from savings — it can come from equity in a property you already own.

How do bridging loan interest rates compare to mortgages?

Bridging rates (0.55% – 1.5% per month) are significantly higher than mortgage rates when expressed annually. A 0.75% monthly rate equates to roughly 9% per annum — far more than a standard mortgage. But the comparison isn’t straightforward because bridges are held for months, not years. The total cost of a 4-month bridge at 0.75% per month is often less than the total interest on a 25-year mortgage, and the bridge gives you access to deals that a mortgage timeline would make impossible.

Can I use a bridging loan to buy commercial property?

Yes. We arrange commercial bridging on offices, retail units, warehouses, industrial premises, and mixed-use buildings. LTVs on commercial property are typically up to 70%, and rates may be slightly higher than residential bridging. See our commercial bridging finance page.

Can international buyers get UK bridging loans?

Yes. We regularly arrange bridging for international buyers, expats, and foreign nationals purchasing UK property. The process is similar to domestic bridging but may require additional documentation and slightly longer turnaround times depending on the borrower’s jurisdiction and the source of funds.

What’s the difference between a bridge loan and a bridging loan?

Nothing — they’re the same thing. “Bridge loan” is the American term, “bridging loan” is the British one. Both describe a short-term loan that bridges a gap in property finance.

Other Ways We Can Help

• Commercial Bridging Finance — dedicated commercial property lending
• Refurbishment Finance — purchase plus staged renovation funding
• Development Finance — ground-up and conversion projects
• Bridge-to-Let — bridge that converts into a buy-to-let mortgage automatically
• Unregulated Bridging — investment and commercial property
• Regulated Bridging — when the property is your home
• International Bridging — UK and overseas property for global clients
• Securities Backed Lending — borrow against your investment portfolio instead of property
• Commercial Mortgages — long-term commercial property finance

About Us

Platinum Global Bridging Finance has been arranging property and asset-backed lending for over 15 years. We’re based at 64 Knightsbridge, London SW1X 7JF and Railway House, Urmston, Manchester M41 6NA, and we work with clients across the UK and internationally. Our panel includes over 100 specialist lenders — private banks, challenger banks, and alternative credit providers — and every client gets a named adviser who manages their deal from start to finish.

This page is maintained by the bridging finance team at Platinum Global Bridging Finance. For a conversation about your deal, contact us here.