Fast, flexible short-term finance for commercial property transactions — decisions in 48 hours, completion in days, and creative structuring for deals that mainstream lenders will not touch. Our Maidstone-based service connects you with specialist lenders who understand the Kent property market.
Commercial bridging finance provides rapid, short-term funding secured against commercial or mixed-use property. These loans are designed for situations where speed and certainty of execution outweigh the higher cost compared to term lending — auction purchases with 28-day deadlines, time-sensitive acquisitions where a vendor will not wait for conventional mortgage timelines, chain breaks, and property opportunities that require immediate action before being lost to competing buyers.
Unlike traditional commercial mortgages, which can take two to four months to arrange, commercial bridging finance can be agreed in principle within 48 hours and completed within five to ten working days in straightforward cases. This speed comes from a fundamentally different underwriting approach: bridging lenders focus primarily on the security value of the property and the credibility of the borrower's exit strategy, rather than conducting the exhaustive income and business analysis required for term lending.
Our commercial bridging solutions cover the full spectrum of scenarios. We arrange first charge bridges for outright purchases, second charge bridges where borrowers need additional capital without disturbing an existing mortgage, and bridges on properties that mainstream lenders consider unmortgageable — those without planning consent, in need of significant refurbishment, with environmental issues, or in non-standard construction. The breadth of our lender panel means we can find solutions where others see only obstacles.
Interest on commercial bridging loans is typically structured in one of three ways. Retained interest means the full interest cost for the term is deducted from the loan advance on day one, so no monthly payments are required — you receive a net advance and pay back the gross loan at exit. Rolled-up interest accrues monthly and is added to the loan balance, meaning again no monthly payments but the amount you repay at exit increases each month. Serviced interest requires you to make monthly interest payments throughout the term, which reduces the total cost but requires ongoing cash flow. The choice between these structures depends on your cash position and the nature of the underlying transaction.
Every bridging loan requires a clear and credible exit strategy — the plan for how you will repay the loan at the end of the term. The most common exit routes for commercial bridging are refinancing to a long-term commercial mortgage once the property has been improved, stabilised, or has achieved planning consent; sale of the property after refurbishment or repositioning; sale of another asset; or receipt of funds from another confirmed source. Lenders will scrutinise the exit carefully, and a weak or speculative exit strategy is the most common reason for bridging applications being declined.
Commercial bridging is particularly valuable for refurbishment projects where the property's current condition makes it unmortgageable but the end value after works will support a conventional commercial mortgage. Light refurbishment bridges fund cosmetic improvements — redecoration, new kitchens and bathrooms, landscaping — while heavy refurbishment bridges fund structural works, extensions, and reconfiguration. Some lenders release refurbishment funds in stages as works progress, while others advance the full amount on day one for borrowers with proven track records.
We also arrange commercial bridges for permitted development conversions — converting commercial buildings such as offices or retail units to residential use under permitted development rights. These transactions often fall outside both conventional commercial and residential lending criteria but are ideally suited to bridging finance, with the exit being either sale of the completed units or refinancing onto individual residential mortgages.
Pricing for commercial bridging reflects the short-term nature and the speed of execution. Interest rates typically range from 0.65% to 1.5% per month depending on LTV, property type, loan size, and borrower profile. Arrangement fees of 1% to 2% of the gross loan are standard. While this makes bridging significantly more expensive than term lending on an annualised basis, the short loan duration means the absolute cost in pounds is often manageable when set against the profit on the underlying transaction. Borrowers should also be aware of potential exit fees charged by some lenders, and should factor in the cost of the valuation, lender legal fees, and their own solicitor's fees when calculating the total cost of the bridging facility.
Risk management is central to any bridging transaction. The primary risk is that the exit strategy fails — the property does not sell, the refinance is declined, or the expected funds do not materialise. We mitigate this by stress-testing every exit strategy before submission: if the property were to sell at ten per cent below asking, does the sale still cover the bridge? If the refinance valuation comes in lower than expected, is there a fallback plan? Experienced bridging borrowers always have a secondary exit strategy, and lenders reward this preparedness with better terms.
Second charge bridging deserves particular mention. Where a borrower already has a first charge mortgage on a commercial property but needs to release equity quickly — perhaps to fund a deposit on a new acquisition or to finance urgent works — a second charge bridge can provide the solution without requiring the existing mortgage to be disturbed. This is especially valuable where the existing mortgage carries a competitive rate that would be lost on refinancing, or where there are early repayment charges that make full refinancing uneconomic. Second charge bridging rates are higher than first charge because the lender accepts a subordinate position, but for the right situation, the speed and flexibility justify the premium.
The importance of professional advisers in bridging transactions cannot be overstated. A solicitor experienced in bridging work can make the difference between completing on time and missing a critical deadline. Bridging conveyancing moves at a different pace to standard commercial transactions, and solicitors unfamiliar with the process often cause delays that bridging is specifically designed to avoid. We maintain relationships with solicitors across the UK who specialise in fast-turnaround bridging completions and can recommend firms in most locations.
Our team has deep experience structuring commercial bridges for complex scenarios. Matt Lenzie's background in commercial banking at Lloyds and Bank of Scotland means we understand both sides of the transaction — what lenders need to see to approve quickly, and where the real risks and opportunities lie in the deal. We present applications to lenders in the format they want to receive them, with all supporting information prepared upfront, which is the single most important factor in achieving fast completion. Our corporate finance background and advisory experience with institutional investors give us additional credibility with lenders who know that applications from our brokerage have been thoroughly prepared and commercially sound.
Market Insight: County town with strong local occupier base. Good transport links support commuter demand.
Town centre enhancement; riverside development; Sessions House quarter
Good appetite across sectors. Quality retail and offices favoured.
For straightforward cases with all documentation prepared and ready, we can typically obtain a decision in principle within 48 hours and achieve completion within 5 to 10 working days. More complex cases — involving heavy refurbishment, non-standard property types, or corporate structures — may take 2 to 4 weeks. The single biggest factor in achieving speed is preparation: having your identification documents, proof of funds for any equity contribution, details of the exit strategy, and solicitor instructed before the application goes in. We prepare a full lender-ready package before submission, which eliminates the back-and-forth that slows many bridging applications.
These are the three ways bridging loan interest can be structured. Retained interest is deducted from the loan on day one — if you borrow £500,000 gross with 12 months of retained interest at 0.85% per month, you receive £449,000 net and repay £500,000 at exit. No monthly payments are required. Rolled-up interest accrues monthly and is added to the loan balance — you receive the full advance but the amount you owe grows each month. Again, no monthly payments. Serviced interest requires monthly payments of the interest charge, meaning you receive the full advance and repay only the capital at exit, but must have cash flow to meet the monthly obligation. Retained interest is most popular because it provides certainty of total cost from day one.
Yes, every bridging lender requires a clear, credible, and evidenced exit strategy. This is the plan for how you will repay the bridge loan at the end of the term. Common exit routes include refinancing to a long-term commercial mortgage, selling the property after refurbishment or repositioning, selling another asset, or receiving confirmed funds from another source. Lenders will assess the viability of your exit carefully — stating that you intend to refinance is not enough; you need to demonstrate that the property will be mortgageable at exit, that you have the profile to obtain a term mortgage, and that the numbers work. We help clients structure their exit strategy before the bridging application to ensure it withstands lender scrutiny.
Yes, this is one of the most common uses of commercial bridging. Lenders categorise refurbishment as either light or heavy. Light refurbishment covers cosmetic works — redecoration, new flooring, updating kitchens and bathrooms, landscaping — and is funded through a standard bridging loan with the advance based on the post-works value. Heavy refurbishment involves structural works, extensions, change of use, or significant reconfiguration and is funded through a specialist refurbishment bridge that may release funds in stages as works progress, similar to development finance. The lender will assess the borrower's refurbishment experience, the scope and cost of works, and the projected end value to determine the loan amount.
A first charge bridge is the primary loan secured against the property — it has first priority if the property is sold or repossessed. A second charge bridge sits behind an existing first charge mortgage and has subordinate priority. Second charge bridges are used when you want to raise additional capital against a property without disturbing your existing mortgage — for example, to release equity for a deposit on another purchase. Second charge rates are typically higher than first charge because the lender accepts greater risk. The first charge lender must consent to the second charge being placed on the property.
Absolutely — auction finance is one of the core use cases for commercial bridging. When you win a lot at auction, you typically pay a 10% deposit on the day and must complete the purchase within 28 days. This timeline is far too short for a conventional commercial mortgage. Bridging finance bridges this gap, providing the remaining funds within the auction completion deadline. We recommend obtaining a decision in principle before the auction so that your bridging facility is ready to proceed immediately after your winning bid. We routinely work with auction purchasers and can co-ordinate with solicitors and valuers to meet 28-day deadlines.
If your exit strategy is delayed — for example, the sale of the property takes longer than expected or your refinance application has not completed — most bridging lenders will consider an extension to the loan term. Extension terms and costs vary by lender: some charge the same monthly rate for the extension period, others increase the rate, and some charge an extension fee. It is critical to communicate with your lender and broker as soon as you know the exit may be delayed, rather than waiting until the term expires. Proactive communication typically results in more favourable extension terms. In the worst case, if the loan cannot be repaid and no extension is agreed, the lender may appoint a receiver and sell the property to recover their funds.
Commercial bridging loans on properties used solely for business or investment purposes are not regulated by the FCA — they fall outside the scope of consumer credit regulation. This means fewer prescribed consumer protections but also greater flexibility in lending criteria and speed of execution. However, if the property is or will be occupied as a residence by the borrower or a family member, the bridging loan may be regulated, requiring the broker to be FCA-authorised and providing additional protections including a cooling-off period. At Commercial Mortgage Broker, we work with both regulated and unregulated bridging lenders to ensure your transaction is handled appropriately through the correct regulatory channel.
The total cost depends on the loan amount, interest rate, term, and fee structure. As an illustration: a £500,000 commercial bridge at 0.85% per month with retained interest for 10 months, plus a 1.5% arrangement fee, would cost approximately £42,500 in interest and £7,500 in arrangement fees — a total finance cost of £50,000. Add valuation (£1,500-£3,000), lender legals (£2,000-£3,000), your solicitor's costs, and broker fees. While this is significantly more expensive than term lending on an annualised basis, the short duration means the absolute pound cost is manageable when viewed against the profit or strategic benefit of the underlying transaction.
Many commercial bridging lenders will consider borrowers with historic adverse credit, provided the overall deal fundamentals are strong. The key factors are the equity in the deal (lower LTVs provide greater comfort), the quality and credibility of the exit strategy, and the nature and age of the adverse credit. Recent defaults, active CCJs, or ongoing insolvency proceedings are more problematic than older, satisfied adverse markers. Expect to pay a higher interest rate and potentially a higher arrangement fee. Full transparency about your credit history from the outset is essential — lenders are far more likely to decline an application where adverse credit is discovered during due diligence than one where it is disclosed upfront with a clear explanation.
Dedicated commercial bridging finance specialists with deep knowledge of the Kent market.
Access to 100+ specialist lenders including those with specific appetite for Maidstone.
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Successfully arranged millions in property finance across Kent and beyond.
Provider of non-regulated lending solutions. Your property may be repossessed if you do not keep up repayments on your mortgage.