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 deals run at 70 to 80 percent loan-to-value, with rates starting from around 0.5 percent per month. Terms typically range from a few months up to 18 months. In straightforward cases, funds can be in place within a week.
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 every bridging lender in the UK – including specialists and private funders that most borrowers never get access to 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 a Bridging Loan Looks Like in Practice
A property comes up at auction – £285,000, obvious refurbishment potential, and a 28-day completion window. No high street lender is going near it in its current state, and even if they would, the timeline rules them out entirely.
A bridging loan covers £213,750 of the purchase – 75 percent of the price, with a 25 percent deposit going in alongside it. The rate is 0.8 percent per month, which works out at £1,710 in monthly interest. That does not get paid as it accrues though – it rolls up and comes off the top when the loan is repaid.
Four to five months of refurbishment later, the property is mortgageable. A buy-to-let mortgage refinances the bridge, the loan clears, and the deal closes with equity already built in before the first tenant signs a contract.
Short-term, clean exit, numbers that worked from day one. That is bridging finance doing exactly what it is supposed to do.
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
When the hammer falls at auction, the clock starts immediately. Buyers are typically required to complete within 28 days – a timeline that rules out standard mortgage applications almost by default.
Bridging finance is the standard solution for auction purchases. It moves fast enough to meet the deadline, works on properties in any condition, and can be structured around the specific deal rather than a rigid lending template.
Whether the plan is to refurbish and sell, hold and let, or refinance once the property is stabilised – the bridging loan gets the purchase over the line first. Everything else follows from there.
Getting outbid at auction because the finance was not in place is one of the more avoidable frustrations in property. Having a broker who has arranged auction finance before, with lenders who understand the timeline, removes that risk before the bidding starts.
“The finance was in place before the auction ended. We completed in six days and the property was worth considerably more than we paid once the work was done.”
D.H., London property investor.
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.
One of our clients used a bridging loan to settle a six-figure tax bill, sidestep the penalties that would have followed, and refinance onto more favourable terms once the immediate pressure was off. The property provided the security, the bridge provided the breathing room, and the business came out in a stronger position than if they 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?
Whole-of-Market Access
As a directly FCA authorised and regulated broker, we work with every bridging lender active in the UK market – including specialist and private funders that most borrowers never access directly. Very few brokers can genuinely claim this. It means the search for the right lender starts from the full market rather than a restricted panel, and our business volumes mean we can negotiate terms that a direct approach rarely achieves.
Speed and Efficiency
Bridging finance is a time-sensitive product and we operate accordingly. Our team regularly completes deals in three to seven working days – managing valuations, chasing solicitors and pushing lenders behind the scenes so the deal does not stall waiting for someone else to move. When timing is critical, having a broker who understands the pace is often the difference between completing and losing the deal.
Experienced Brokers
Our brokers are qualified to CeMAP standard and beyond, with hands-on experience across the full range of bridging scenarios – from straightforward auction purchases to complex multi-property deals and commercial transactions. That experience matters when a deal has a complication that a less experienced broker might not know how to structure around.
Transparent Advice
Every cost is explained before anything is agreed. Rates, arrangement fees, legal costs, exit fees – nothing is glossed over or left in the small print. We are independent, which means our advice reflects what is right for the borrower rather than what pays the highest commission. If bridging is not the right product for a situation, we will say so.
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.
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.
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. Most deals complete somewhere between five and ten working days from application – occasionally quicker on straightforward cases where the valuation and legal work run in parallel.
“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 runs monthly and compounds if the loan extends beyond the original term. 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 – 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.
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?
In straightforward cases, funds can be released in as little as five to seven working days.
It depends on the complexity of the deal, how quickly the valuation is completed and how fast the solicitors move. We have completed deals in as little as 48 hours in urgent cases.
How much can I borrow with a bridging loan?
Most bridging lenders will lend up to 75 to 80 percent of the property value.
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 around 0.5 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 comes up more often than people think – and the answer is usually yes.
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.
It is a question that comes up regularly, usually from people who have seen his name attached to finance content online. 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 every bridging lender active in the UK market. That means the search starts from the full picture rather than a restricted panel, and the advice reflects what is genuinely best for the deal rather than what is easiest to arrange.
If bridging is not the right product we will say so – and point toward what is.
Call us on 03303 112 646
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