Fast, flexible short-term secured loans for property purchases, auction acquisitions, and chain breaks with funds available in days.
A bridging loan is a specialist form of short-term secured lending designed to "bridge" the gap between a property purchase and securing permanent financing. As a flexible financial instrument, bridging loans have become essential for property investors, developers, and businesses requiring rapid access to capital when traditional lending timelines are unworkable.
The UK bridging finance market has grown to over £5 billion annually, with lenders advancing funds to borrowers who need speed and flexibility that traditional mortgage lenders cannot provide. Unlike conventional mortgages taking 8-12 weeks, bridging loans can complete in as little as 7 days.
This speed comes from streamlined underwriting processes focusing on asset value and exit strategy rather than extensive income verification. Bridging finance providers assess applications based on the security property's value and the borrower's credible plan to repay—whether through sale, refinance, or other means.
Secured as the primary lender against the property, with no other mortgage ranking ahead. First charge bridging offers the most competitive rates (0.55% - 0.95% monthly), higher LTV (up to 80%), and faster processing.
Sits behind an existing first charge mortgage, allowing borrowers to release equity without disturbing favourable existing rates. Rates typically 0.85% - 1.5% monthly, ideal for portfolio expansion.
Interest added to the loan and paid at redemption—no monthly payments required. Provides cash flow advantages during refurbishment when property isn't generating income. Interest compounds, so shorter terms save money.
Understanding the right scenarios ensures you're using this finance type strategically.
Property auctions require completion within 28 days—too fast for traditional mortgages. Bridging lenders specialise in auction finance.
Purchase your new property before selling your existing one, removing chain pressure and securing your preferred property.
Purchase properties unmortgageable in current condition. Light refurb bridges allow 6-12 months for works before refinancing.
Time-sensitive commercial opportunities—stock purchases, business acquisitions, urgent capital requirements funded against property security.
| Cost Component | Typical Range | Notes |
|---|---|---|
| Monthly Interest Rate | 0.55% - 1.25% | LTV, property, exit dependent |
| Arrangement Fee | 1% - 2% | Added to loan, paid at redemption |
| Exit Fee | 0% - 1% | Many lenders don't charge |
| Valuation Fee | £300 - £1,500+ | Property value dependent |
| Legal Fees (Lender) | £800 - £2,000+ | Borrower pays lender's costs |
| Broker Fee | 0.5% - 1% | Worth it for savings achieved |
Share property details, loan amount, exit strategy. We provide terms within hours, not days.
Formal application submitted, valuation instructed, solicitors engaged.
Desktop (same day) or physical (2-5 days) valuation depending on loan size.
Title investigation, searches, documentation. Dual representation accelerates process.
Funds released—same day possible once all conditions satisfied.
| Aspect | Bridging Loan | Alternative |
|---|---|---|
| Speed | 7-14 days typical | Mortgages take 8-12 weeks |
| Criteria | Asset and exit focused | Income verification required |
| Property Condition | Any condition accepted | Must be habitable |
| Credit History | Adverse credit considered | Clean credit required |
In urgent cases with all documentation ready, we can secure decisions within 24 hours and complete within 5-7 days. More complex cases typically take 2-3 weeks. The speed depends on property type, loan amount, and how quickly you can provide required documentation.
Bridging loans offer retained interest (added to the loan), rolled-up interest (compounded monthly), or serviced interest (paid monthly). Retained interest is popular as it requires no monthly payments, with all interest paid when you exit the loan.
Yes, bridging lenders will consider properties that mainstream lenders reject, including those without kitchens or bathrooms, properties requiring significant refurbishment, short lease properties, and non-standard construction. The key is having a clear exit strategy.
Common exit strategies include sale of the property, refinancing to a term mortgage, sale of another asset, or receipt of inheritance or business sale proceeds. Your exit strategy must be realistic and achievable within the loan term.
Decisions within 24 hours, completion in 7-14 days for straightforward cases. Complex cases (multiple securities, unusual property) may take 3-4 weeks. For urgent cases, some lenders offer expedited services with desktop valuations.
Bridging lenders are more flexible on credit than traditional lenders. While clean credit gets best rates, many lenders work with adverse credit, CCJs, defaults, even recent bankruptcies. Security value and exit strategy carry more weight.
Most lenders consider extensions for 1-2% fee plus continued interest. Communicate early if you foresee needing extension—lenders are far more accommodating with advance notice. Some lenders build extension options into initial terms.
Most bridging lenders don't charge early repayment penalties—you pay interest only for the period used. Some have minimum interest periods (e.g., 3 months). The flexibility to repay early without penalty is a key advantage.
Dedicated bridging loan specialists with deep market knowledge.
Access to an extensive panel of specialist lenders.
Adhering to strict professional and ethical standards.
Proven track record in property finance.
Our local specialists understand the property market in your region and can provide tailored advice.
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