Specialist Finance

Commercial Bridging Loan

Fast, flexible short-term finance for commercial property transactions with decisions in as little as 48 hours and completion within days.

75%
Max LTV
48hrs
Decision
7 Days
Completion
0.55%
From/month
100+ Bridging Lenders
Same Day Terms
Auction Specialists

The Complete Guide to Commercial Bridging Loans in the UK

Commercial bridging loans provide rapid, short-term financing secured against commercial property. These loans are designed for situations where speed is essential—auction purchases requiring 28-day completion, chain breaks, time-sensitive acquisitions, or refinancing when traditional commercial mortgages would take too long.

Unlike traditional commercial mortgages that can take 3-6 months to arrange, commercial bridging can complete in as little as 7 days. This speed comes from streamlined underwriting focused on asset value and exit strategy rather than extensive income verification and trading history analysis.

The UK commercial bridging market has matured significantly, with specialist lenders offering competitive rates from 0.55% per month for prime security. Whether you're acquiring an office building, retail unit, industrial warehouse, or mixed-use property, commercial bridging provides the speed and flexibility that mainstream lenders cannot match.

UK Market Overview (2024-2025)

Typical monthly rates:0.55% - 1.25%
Maximum LTV:70-75%
Minimum loan:£50,000
Maximum loan:£50m+
Typical terms:1-18 months
Average completion:2-3 weeks

How Commercial Bridging Loan Works

1

Application & Valuation

Submit your enquiry with property details and exit strategy. We source terms within 24 hours. Valuation instructed immediately upon acceptance—many lenders use desktop valuations for speed.

2

Legal & Due Diligence

Dual representation (same solicitor for you and lender) accelerates the process. Title investigation, searches, and legal due diligence completed in parallel with valuation.

3

Completion & Funds

Once legal and valuation complete, funds released same day or next day. Full loan amount advanced on day one, unlike development finance staged drawdowns.

When to Use Commercial Bridging Loan

Understanding the right scenarios ensures you're using this finance type strategically.

Auction Purchases

Commercial properties at auction require 28-day completion. Bridging lenders understand auction timelines and can provide terms before you bid.

  • Terms issued pre-auction
  • Completion within 28 days
  • Immediate deposit funding available
  • All commercial property types

Chain Break Finance

Secure commercial premises without waiting for your existing property to sell. Bridge the gap and complete quickly.

  • Purchase before sale completes
  • Avoid losing desired property
  • Exit via property sale
  • Flexible terms

Refurbishment Projects

Purchase and renovate commercial properties that are unmortgageable in current condition, then refinance to commercial mortgage.

  • Light to heavy refurbishment
  • Value-add opportunities
  • Refinance post-works
  • Release equity from improvements

Business Opportunity

Time-sensitive commercial opportunities—expanding businesses, relocating premises, or acquiring competitor sites.

  • Fast capital access
  • Business expansion
  • Stock purchase funding
  • Working capital

Commercial Bridging Loan Costs Explained

Cost ComponentTypical RangeNotes
Monthly Interest Rate0.55% - 1.25%Based on LTV and property type
Arrangement Fee1% - 2%Usually added to loan
Exit Fee0% - 1%Many lenders don't charge
Valuation Fee£500 - £3,000+Property value dependent
Legal Fees£1,500 - £3,000+Borrower pays lender's costs
Broker Fee0.5% - 1%If using a broker

Our Commercial Bridging Loan Process

1

Enquiry

Share property details, loan amount, and exit strategy. We provide indicative terms within 2-4 hours.

2

Terms Acceptance

Review and accept terms. Valuation and legal work instructed immediately.

3

Valuation

Desktop valuation (same day) or physical inspection (2-5 days) depending on loan size and complexity.

4

Legal

Solicitors complete title investigation and prepare legal documentation. 3-7 days typical.

5

Completion

Funds transferred. Completion can be same day once all conditions satisfied.

Key Features of Commercial Bridging Loan

Decisions in principle within 48 hours
Completion possible within 5-7 days for urgent cases
No monthly payments required - interest can be rolled up
Flexible lending criteria for non-standard properties
Finance available for auction purchases and chain breaks
Regulated and unregulated bridging options available

Who Is Commercial Bridging Loan Ideal For?

Property investors making auction purchases
Developers needing fast finance for site acquisition
Businesses relocating to new commercial premises
Property owners breaking chain or preventing sale fall-through
Investors capitalizing on time-sensitive opportunities

Commercial Bridging Loan vs Traditional Options

AspectCommercial Bridging LoanAlternative
SpeedComplete in 5-14 daysCommercial mortgages take 2-6 months
CriteriaFocus on asset and exitExtensive income verification required
Property ConditionUnmortgageable properties acceptedMust meet strict standards
FlexibilityRolled-up interest, no monthly paymentsMonthly payments required

Frequently Asked Questions About Commercial Bridging Loan

How quickly can commercial bridging be arranged?

We can typically obtain a decision in principle within 48 hours. For straightforward cases with all documentation ready, completion can be achieved in 5-7 days. More complex cases may take 2-3 weeks. The speed of completion depends largely on how quickly you can provide required information, arrange valuations, and complete legal work.

What is the difference between regulated and unregulated bridging?

Regulated bridging loans apply when the property is or will be occupied by you or a family member. These loans are regulated by the FCA and have additional consumer protections. Unregulated bridging applies to pure investment or commercial properties with no personal occupation. Unregulated loans typically have more flexible criteria and faster processing times.

Do I need an exit strategy for bridging finance?

Yes, all bridging lenders require a clear and credible exit strategy. Common exit routes include refinancing to a long-term commercial mortgage, selling the property, using cash from another source, or securing alternative financing. Your exit strategy must be realistic and achievable within the loan term, and lenders will assess its viability carefully.

Can I use bridging for property renovation?

Yes, bridging finance is commonly used for property refurbishment. Lenders can advance additional funds for light refurbishment works, or for heavy refurbishment, you may need a light development exit bridging loan that releases funds in stages. The lender will base their loan on the improved value after works are completed.

How quickly can commercial bridging be arranged?

Decision in principle within 24-48 hours. Straightforward cases complete in 5-7 days; complex cases 2-3 weeks. Speed depends on documentation readiness, valuation turnaround, and legal complexity. Auction purchases routinely complete within 28 days.

What is the difference between regulated and unregulated bridging?

Regulated bridging applies when the property is or will be occupied by you or family (FCA regulated, consumer protections). Unregulated applies to pure investment or commercial properties with no personal occupation—faster processing, more flexible criteria.

Do I need an exit strategy for bridging finance?

Yes, all lenders require a credible exit strategy. Common exits: refinance to commercial mortgage, property sale, funds from another source. Your exit must be realistic and achievable within the loan term.

Can I use bridging for property renovation?

Yes, commonly used for refurbishment. Lenders advance funds for light works, or use development exit bridging for heavier refurbishment with staged releases. Lending based on improved value after works.

Why Choose CMB for Commercial Bridging Loan?

Specialist Expertise

Dedicated commercial bridging loan specialists with deep market knowledge.

100+ Lenders

Access to an extensive panel of specialist lenders.

NACFB Member

Adhering to strict professional and ethical standards.

£1BN+ Arranged

Proven track record in property finance.

Ready to discuss your commercial bridging loan needs?

Speak with our specialist team today and get a decision in principle within 48 hours.