Short-term property finance arranged in days, not months
Bridging loans are built for situations where speed matters and a standard mortgage will not keep up. Whether that is an auction deadline, a chain that has fallen apart, or a property that needs work before a lender will touch it – bridging finance fills the gap.
Most lenders lend up to around 75 percent of the property’s value, and some go to 80 percent, with rates starting from 0.55 percent per month. Terms typically range from a few months up to 18 months. Simple cases can move quickly, and the timing depends on the valuation and the legal work.
The rate is only part of the equation though. The structure of the deal, the exit strategy and which lender you use all determine whether a bridging loan actually works for your situation. As a whole-of-market FCA authorised broker, we work with a wide range of bridging lenders across the UK, including specialists and private funders that most borrowers cannot approach directly.
You can estimate costs using our bridging loan calculator before you commit to anything. Alternatively, speak to a bridging specialist today – get terms within 24 hours.
What Is a Bridging Loan and When Should You Use One?
A bridging loan is short-term finance secured against property. It covers a gap between needing money now and getting it back later, usually through a sale or a refinance onto a longer-term mortgage. Most run for between one and eighteen months, and the interest is charged monthly instead of annually.
Lenders look mainly at the property and the exit. They want to know what the security is worth and how the loan will be repaid, and income carries less weight than it does with a mortgage. That focus is why bridging can move faster than a mortgage and why it suits situations a mortgage cannot handle.
Bridging makes sense when timing is the problem and a clear exit exists. Typical cases include buying at auction with a 28-day deadline, completing a purchase before an existing home has sold, buying a property that is not yet mortgageable, and freeing up short-term funds from a property to cover a gap.
It makes less sense when there is no firm exit, when the timeline is open-ended, or when a standard mortgage or a cheaper loan would arrive in time. Bridging costs more than a mortgage, and the bill grows with every month the loan runs.
Monthly interest commonly sits between about 0.65 and 0.95 percent depending on the loan to value, the property and the exit, and an arrangement fee of 1 to 2 percent is typical, with valuation and legal costs on top. Most lenders lend up to around 75 percent of the property’s value, and some go to 80 percent. Our bridging loan rates page shows the current bands for each type of deal.
What a Bridging Loan Broker Does
A bridging loan broker finds the lender whose criteria fit your property, your exit and your timeline, then manages the case until the money arrives. Bridging lenders differ sharply on what they will lend against, how quickly they move and what they charge, so the lender that suits one deal can decline the next.
We are a whole-of-market FCA authorised broker with a panel of more than 350 lenders, including specialists and private funders that most borrowers cannot approach directly. Before anything is submitted we tell you which lenders are likely to engage, what to expect on rate and loan to value, and what the whole deal will cost. If bridging is not the right answer, we say so.
What a Bridging Loan Looks Like in Practice
A sale collapses three weeks before completion. The onward purchase is at £395,000, the residential mortgage on it is agreed at £250,000, and the remaining £145,000 was coming from the sale of the existing home. That money has just disappeared from the picture.
The existing property is worth £480,000 with £150,000 outstanding on the mortgage. A bridging loan of £145,000 is secured against it behind that first charge, taking total borrowing on the property to £295,000 against a £480,000 valuation – just over 61 percent loan-to-value, comfortably inside lender appetite.
At 0.75 percent per month the interest runs at £1,087.50, rolled up rather than paid monthly. Over a four-month term that is £4,350, plus a £2,175 arrangement fee. Total cost of the bridge, £6,525.
The onward purchase completes on time. The existing home then sells at its proper value instead of whatever a four-week deadline would have forced, and the sale clears the original mortgage, the bridge and its costs, leaving £178,475 before agent and legal fees.
Six and a half thousand pounds to avoid dropping the asking price by twenty-five thousand or losing the purchase entirely. That is usually the whole calculation.
Figures are illustrative and not a quotation.
Common Uses of Bridging Loans UK
Fast Property Purchases
In a competitive market the difference between securing a property and losing it often comes down to how fast the money moves. Bridging finance is built for exactly that – giving buyers the ability to act when the right opportunity appears, without waiting weeks for a mortgage offer that may never come in time.
It is particularly useful for properties that do not yet qualify for a standard mortgage – those needing significant renovation, missing a functional kitchen or bathroom, or left empty long enough that mainstream lenders will not consider them. A bridging loan gets the purchase done now. The renovation follows. Refinancing onto a standard mortgage or buy-to-let product comes once the property is in mortgageable condition.
Below market value purchases work the same way. The window to secure a BMV deal is often narrow – another investor is rarely far behind. Bridging finance removes the timing problem entirely.
“I found a fantastic BMV property, but it needed serious repairs and no bank would touch it. Commercial Finance Network got the bridging loan arranged in days and I refinanced onto a standard mortgage three months later with equity already built in.”
Jamie T, Manchester investor.
Auction Property Finance
Auction completion deadlines run to 28 days, which rules out a standard mortgage almost by definition. Bridging is the standard answer, and it works on property in any condition. We cover the timeline, costs and common decline reasons in detail on our auction finance page.
Refurbishment and Development Finance
Most high street lenders will not release funds against a property that is not yet in mortgageable condition. That rules out a significant proportion of refurbishment opportunities before they even get started.
Bridging finance works differently. It is designed for properties mid-project – those needing a light cosmetic refurbishment, a full structural overhaul, or anything in between. The loan gets the purchase done and can be structured to release funds in stages as the works progress, rather than as a single lump sum upfront.
The exit is usually one of two things – a sale once the refurbishment is complete, or a refinance onto a standard mortgage or buy-to-let product once the property reaches mortgageable condition. Either way, the bridge covers the gap between where the property is now and where it needs to be.
For larger or more complex projects, development finance may be a better fit than a standard bridging product. Our team works across both and can advise on which structure makes more sense for the specific project.
Chain Break Finance
Property chains collapse more often than most buyers expect. When a sale falls through further down the chain – sometimes days before completion – it can leave a purchase stranded with no obvious way forward.
A bridging loan resolves the timing problem. Rather than losing the onward purchase or being forced into a rushed sale at below asking price, the bridge covers the cost of completing the new purchase now. The existing property is then sold in its own time, at the right price, without artificial deadline pressure.
For homeowners in this position the calculation is usually straightforward. The cost of the bridge for two to four months is considerably less than the discount a panicked sale would require, or the cost of losing a property and starting the search again.
We handle chain break bridging regularly and understand that speed and clear communication matter as much as the finance itself in these situations.
Land Acquisition
Good development land moves quickly. By the time a planning application is assessed and conventional development finance is arranged, the opportunity is often gone. Bridging finance gives developers and investors the ability to secure a plot first and work through the planning and funding detail afterwards.
It works across a range of land situations – plots with full planning permission already in place, land at outline or pre-application stage, and raw sites where the development potential is clear but the planning position is not yet resolved. Lenders assess land bridging primarily on the site value, the proposed exit and the credibility of the development plan rather than the current income the land generates.
For developers looking to capture planning uplift – buying ahead of a permission being granted and refinancing or selling once it is – bridging finance is often the only product that moves quickly enough to make the strategy work.
Business Cash Flow
Cash flow gaps hit businesses at the worst possible moments – a VAT bill lands before a large invoice clears, an HMRC deadline arrives during a seasonal slowdown, or a supplier needs paying before a contract payment comes through. The timing is rarely convenient and the consequences of getting it wrong can be serious.
For business owners with property on the balance sheet, bridging finance offers a practical route through. Capital tied up in a property can be accessed quickly – often within a week – to cover a short-term liability, avoid a penalty or keep operations moving while longer-term funding is arranged.
For example, a business owner with a six-figure tax bill due could use a bridging loan secured on a property to settle it, avoid the penalties that would follow, and refinance onto more favourable terms once the immediate pressure was off. The property provides the security, the bridge provides the breathing room, and the business comes out in a stronger position than if it had waited.
It is worth noting that this type of bridging loan is secured against property. The funds can be used for business purposes but the security requirement means it suits business owners who have property assets available to charge.
Downsizing or Upsizing
The timing rarely works out neatly when buying and selling simultaneously. A property worth moving for comes onto the market before the current one has sold, and the choice becomes either moving quickly or watching it go to someone else.
Bridging finance resolves the sequencing problem. The new purchase completes on its own timeline, funded by the bridge, while the existing property is sold without the pressure of an artificial deadline. Once the sale completes the bridge is repaid and the transaction is settled.
For most homeowners in this position the maths is relatively straightforward. A bridging loan running for two to four months while the existing property sells typically costs considerably less than either losing the purchase entirely or accepting a reduced offer on the sale to force the timing to work.
This type of bridging loan is regulated by the FCA because it involves a property the borrower will live in – which means additional consumer protections apply throughout the process.
Why Use Commercial Finance Network
A Panel of More Than 350 Lenders
We are directly authorised and regulated by the Financial Conduct Authority, and we work with a panel of more than 350 lenders, including specialist and private bridging funders that most borrowers cannot approach on their own. The search starts from the whole market rather than a restricted list, which gives us room to negotiate on terms.
A Named Adviser From First Call to Completion
You deal with a named adviser and a case manager from the first conversation until the money is released. Every stage of the case can be followed in WiiN at any hour, so you are not left waiting for a phone call to learn where the valuation or the legal work has got to. Enquiries are answered the same working day.
Speed and Experience on Both Simple and Complex Deals
Bridging is a time-sensitive product, so we run the valuation and the legal work side by side wherever the lender allows it. Some deals complete within days, though many take a few weeks. Our brokers have handled everything from a single auction purchase to multi-property and commercial transactions, and that matters most when a deal has a complication that needs structuring around. Part of the job is chasing solicitors and valuers and pressing lenders so that nothing stalls waiting for someone else.
Advice That Includes Saying No
Every cost is explained before anything is agreed: the rate, the arrangement fee, the legal costs and any exit fee. Our recommendation reflects what suits the borrower and the deal, and if bridging is not the right product we will say so. Clients rate us 4.9 out of 5 from 180 Trustist reviews.
Types of Bridging Loan
Bridging finance is not a single product. The structure that works for a homeowner breaking a chain is quite different from what a developer needs to fund a land acquisition, and lenders price and assess each type differently.
Open Bridging Loans
With an open bridge, there is no fixed repayment date. The exit strategy is known – a property sale, a refinance – but the exact timing has not been confirmed yet. Lenders will still want to see a credible plan for how the money comes back, but they are not holding you to a specific date.
This suits buyers who are progressing toward a sale but cannot yet put a completion date on it.
Closed Bridging Loans
A closed bridge works the other way around.
The repayment date is locked in from day one – usually because contracts have already been exchanged on a sale or a refinancing is already agreed and just needs to complete. Because the exit is certain rather than probable, lenders tend to offer sharper terms.
If the timeline is confirmed, a closed bridge is almost always the better option.
Regulated Bridging Loans
If the property being used as security is one the borrower or a close family member will live in, the loan falls under FCA regulation. That brings with it consumer protections and a more structured advice process – which matters when someone is using their home as security for short-term borrowing.
Unregulated Bridging Loans
Investment properties, development sites and commercial assets fall outside the FCA consumer framework. That is not a disadvantage – unregulated loans typically move faster, offer more flexibility on structure and are not constrained by the same process requirements. Most professional property borrowers are working in this space.
First and Second Charge
A first charge bridge is the primary loan secured against a property with no existing mortgage sitting in front of it.
A second charge sits behind an existing mortgage – the original lender gets paid first in any enforcement scenario, which increases the risk for the bridging lender and is usually reflected in the rate.
Second charge bridging is useful for borrowers who want to release capital from a property without disturbing the mortgage already in place on it.
If you are weighing a bridge against a longer term commercial mortgage, our comparison of commercial mortgages and bridging finance sets out where each one fits.
Understanding the Real Cost of Bridging Finance
Bridging loans involve more than just the monthly interest rate. You can run the numbers using our bridging loan calculator to see how the costs build over different timeframes.
Knowing what else is involved before committing avoids the kind of surprises that make a deal less attractive in hindsight.
This focuses on short-term funding structure and costs – not full project returns, tax implications or long-term investment performance.
Typical Monthly Interest
Monthly interest is the biggest cost of a bridge, and it moves with the loan to value more than with anything else. Most deals run from about 0.65 to 0.95 percent a month, with lower loan to value cases at the bottom of that range and higher ones at the top. The current rate for each band, with worked cost examples, is on our bridging loan rates page.
Interest is rarely the whole bill. An arrangement fee of 1 to 2 percent of the loan is typical and is usually added to the loan itself. Valuation and legal fees come on top, and some lenders also charge an exit fee when the loan is repaid. We set out every one of these in writing before you decide to go ahead, so the figure you compare is the total cost and not just the headline rate. If you want to know how much a particular property could support, our guide to how much you can borrow with a bridging loan works through the limits.
Here is what to expect.
Valuation Fees
Before a lender commits to anything, they will want an independent valuation of the property being used as security. The cost depends on the property type, size and location – and it is typically paid before the loan is approved rather than rolled into it. In some cases, particularly on straightforward residential properties, lenders will accept a desktop valuation which is faster and cheaper than a full physical inspection.
Legal Fees
Both sides instruct solicitors – the borrower and the lender each have their own legal representation. These fees cover title checks, contract review and the legal work involved in registering the charge against the property. We keep solicitors moving throughout the process because delays at the legal stage are one of the most common reasons bridging deals run longer than planned.
Exit Fees
Not every lender charges an exit fee but some do – usually a fixed amount or a small percentage of the loan on repayment. We compare lenders on this as part of the initial search because exit fees can meaningfully affect the total cost of a deal, particularly on larger loans.
Broker Fees
Our fee covers the full service – market search, lender negotiation, application management, valuation coordination and keeping the deal moving through to drawdown. It is disclosed in full before anything is agreed and can in most cases be added to the loan rather than paid upfront.
How a Bridging Loan Gets Arranged
Most people who have not used bridging finance before assume the process is complicated. It rarely is – but it moves differently from a mortgage, and knowing what to expect at each stage keeps things on track.
The first conversation
Everything begins with the deal itself. Property details, loan amount, timeline, and how the money gets paid back. That last question comes up immediately because it determines which lenders are worth approaching and which are a waste of everyone’s time.
Finding the right lender
This is where whole-of-market access genuinely matters. Different lenders have different appetites – for property types, borrower profiles, timelines and deal complexity. We know which lenders move fastest, which are comfortable with unusual situations, and which ones to avoid for a particular type of deal. The shortlist we come back with reflects that, not just whoever is offering the lowest headline rate that week.
Application and valuation
Once a lender is selected, the application is submitted and the valuation instructed. The lender needs a confirmed security value before committing – this stage usually wraps up within two to three working days and is often the biggest single variable in overall deal speed.
Legal stage
Both sides instruct solicitors. Title checks, charge registration, contract review. Deals stall here more than anywhere else – not because something has gone wrong, but because legal work moves at its own pace and the borrower is usually the only one with any urgency. We push this stage consistently because momentum lost here is hard to recover.
Money out
Legal sign-off comes through and funds release. Timing depends on the valuation, the legal work and the complexity of the deal. Straightforward cases can complete in a couple of weeks, and more complex ones take longer.
“I thought it was going to be a nightmare. The team handled everything and the money landed faster than I thought possible.”
Sarah M, West Midlands
Who Can Apply for a Bridging Loan
Bridging finance is not exclusively for large developers or experienced property investors.
We work with first-time landlords, homeowners managing a chain break, business owners with a short-term funding need and seasoned developers running multiple projects simultaneously – the common thread is a clear purpose and a credible exit, not the size of the portfolio.
Individual borrowers, including UK expats and non-UK residents, are eligible. So are property investors, developers, business owners, limited companies and SPVs set up specifically for property transactions. The structure of the borrower matters less to most bridging lenders than the quality of the security and the clarity of the repayment plan.
What lenders generally want to see is a UK property to secure the loan against, a realistic and documented exit strategy, standard identity verification, and sufficient equity in the property to support the loan amount.
Credit history is considered but it is rarely the deciding factor – the asset and the exit carry more weight in the bridging assessment than they would in a standard mortgage application.
Not sure whether a particular situation qualifies? A short conversation is usually enough to give a clear answer either way.
Why Borrowers Choose Bridging Finance
The common thread across most bridging applications is timing. A standard mortgage moves too slowly, a lender declines on property condition, or a deadline makes conventional finance unworkable. Bridging steps in because it is structured for exactly those situations – short-term, asset-focused, and arranged in days rather than months.
For most borrowers it is not a permanent solution. It is the mechanism that gets a deal over the line, a project started, or a funding gap covered while longer-term finance is arranged. The exit strategy is agreed at the start, which means the bridge has a defined purpose and a defined end from day one.
Things to Consider Before Applying
Bridging finance works well when the situation genuinely calls for it. When it does not, it is an expensive way to solve the wrong problem.
The short-term nature is the first thing to be honest about. These loans are not designed to sit in place while a borrower works out what to do next. The exit needs to be realistic, documented and something the borrower actually believes in – not just something written on an application to satisfy a lender.
Interest accrues every month the loan stays open. If it is rolled up, the interest is added to the balance, and a bridge that runs longer than planned costs more than the first quote suggested. A three-month bridge that turns into a nine-month bridge because a sale fell through or a refinance took longer than expected can look very different on the final bill. Use our bridging loan calculator to stress test the numbers at different timescales before committing, and not just the best case.
The loan is secured against property. That is not a formality – it means the asset is genuinely at risk if repayment fails. Most deals complete without drama. But this is real money secured against a real asset and it deserves to be treated that way from the start.
If an application has already been turned down, or you want to avoid the usual reasons they fail, start with why bridging loans get declined and how to avoid it.
We cover all of this before anything moves forward. If a deal does not stack up or bridging is the wrong product for the situation, that conversation happens early rather than after the fees are in.
As with any secured loan, your property may be at risk if the loan is not repaid.
FAQs: Bridging Loans in Plain English
What is a bridging loan?
A bridging loan is short-term property finance designed to bridge a funding gap between needing money now and repaying it later – usually through a sale or refinance.
They typically run from a few weeks up to 18 months and are arranged far faster than a standard mortgage.
How quickly can a bridging loan be arranged?
Simple cases can complete in around a week or two, and complex ones take longer.
It depends on the complexity of the deal, how quickly the valuation is completed and how fast the solicitors move.
How much can I borrow with a bridging loan?
Most bridging lenders will lend up to around 75 percent of the property value, and some go to 80 percent.
The exact amount depends on the property, the deal structure and whether additional security is available. CFN works with lenders offering loans from £25,000 up to £100+ million.
What can a bridging loan be used for?
Bridging loans are used for auction purchases, refurbishments, chain breaks, land acquisition, business cash flow and any situation where speed of funding matters.
They are particularly useful for properties that do not yet qualify for a standard mortgage.
Do I need an exit strategy?
Yes – every lender will require a clear and credible exit plan before approving a bridging loan.
The two most common exits are selling the property or refinancing onto a longer-term mortgage once the deal is complete.
Do I make monthly repayments on a bridging loan?
Not always. Most bridging loans allow interest to be rolled up and repaid in full at the end of the term rather than paid monthly.
Monthly serviced options are also available depending on the lender and the deal structure.
Are bridging loans expensive?
More than a mortgage, yes – but the comparison is not really like for like.
Rates start from 0.55 percent per month, and the total cost depends heavily on how long the loan runs. A deal that completes and exits cleanly in three months costs a fraction of one that drags on for twelve. That is why the exit strategy matters as much as the rate. Use our bridging loan calculator to run the numbers before you commit.
Can I get a bridging loan with bad credit?
It can be possible, and it comes up more often than people think.
Bridging lenders are primarily concerned with two things: the property going in as security, and whether the exit actually stacks up. A chequered credit history matters less here than it would with a high street mortgage application. It may narrow the lender options or push the rate up slightly, but it rarely closes the door entirely.
Are all bridging loans regulated?
It depends totally on what the property is being used for.
If you or a family member will be living in it, the loan falls under FCA regulation – which means more consumer protections and oversight. If the property is for investment, development or business use, it sits outside that framework. That is not necessarily a bad thing – unregulated loans often move faster and offer more flexibility – but it does mean you are relying on your broker to look after your interests rather than a regulatory rulebook.
What can I use as security for a bridging loan?
Property is the starting point – but the range is broader than most people assume.
Residential houses and flats are the obvious ones. Beyond that, lenders regularly accept commercial buildings, mixed-use property, land without planning and buildings partway through a refurbishment. The question lenders ask is straightforward – does this asset cover the loan, and could we recover the money from it if we had to.
What does a bridging loan cost beyond the interest rate?
The rate gets most of the attention but it is rarely the only number that matters.
Alongside monthly interest, most deals carry a lender arrangement fee – usually somewhere between 1 and 2 percent – plus valuation costs, solicitor fees on both sides and sometimes an exit fee on repayment. We walk through all of it before anything is signed. Most of these costs can be added to the loan rather than paid out of pocket at the start.
Does Martin Lewis provide bridging loans?
Martin Lewis runs MoneySavingExpert – a consumer advice website. He does not arrange loans of any kind.
For bridging finance, what you actually need is a broker with direct access to specialist lenders – not a comparison article. A conversation with our team takes twenty minutes and tells you what is genuinely possible for your situation.
Start Your Bridging Loan Enquiry Today
If there is a deal on the table, a deadline approaching or a situation that needs sorting quickly, the first step is a conversation. No forms to fill in, no commitment required, just a clear discussion about what is possible and whether bridging finance is the right route for the specific situation.
We work with a wide range of bridging lenders across the UK market. That means the search starts from the full picture and not a restricted panel, and the advice reflects what is genuinely best for the deal. As a whole-of-market commercial finance broker, we are directly authorised and regulated by the Financial Conduct Authority, working with businesses and property investors across the UK and internationally.
If bridging is not the right product we will say so – and point toward what is.
Call us: +44 1494 622 111
Email: info@cfnuk.com
Or use the contact form and we will come back to you the same working day.Your property may be repossessed if you do not keep up repayments on a loan secured against it. Commercial and business-purpose lending secured against investment property is not regulated by the Financial Conduct Authority.
Related Pages
- Bridging Loan Rates UK – current monthly rate ranges by LTV, property type and lender across the specialist bridging market
- Auction Finance – bridging for property bought at auction, with the 28-day timeline and costs broken down in full
- Buy-to-Let Mortgages – the most common exit from a bridging loan once a property reaches mortgageable condition
- Commercial Mortgages – longer-term finance for commercial property once short-term bridging has completed its purpose
- Development Exit Finance – specialist short-term refinancing for completed development schemes before longer-term funding is arranged
