Short-term funding designed to move quickly.
Bridging finance provides temporary capital to secure a purchase, complete an auction transaction or meet a time-sensitive deadline while awaiting sale, refinance or longer-term funding.
Where timing is critical, structured bridging can provide certainty and flexibility.
Certain property transactions require funding that can move faster than traditional lending allows. Whether responding to a time-sensitive opportunity, completing a purchase before a sale finalises or funding a property that cannot yet be mortgaged, short-term finance can provide the flexibility required.
Bridging loans are designed to provide that short-term capital while a defined exit strategy is implemented.
A bridging loan is short-term secured finance used to provide immediate capital until a planned exit event occurs, typically the sale of a property or refinancing onto a longer-term facility.
These facilities are commonly used where speed and flexibility are required and conventional mortgage funding cannot be arranged within the necessary timeframe.
Bridging loans are frequently used in situations where transactions must progress quickly or where a property does not yet meet standard mortgage lending criteria.
This may include auction purchases, time-sensitive acquisitions, completion of conditional contracts or purchasing a property before an existing sale completes. Bridging finance is also widely used to fund refurbishment projects, acquire non-mortgageable properties prior to renovation or provide interim funding while arranging development finance.
The loan is secured against property and arranged for a short-term period, typically up to 12 months, although longer terms may be available depending on the structure of the transaction.
A clearly defined exit strategy is required from the outset. This may involve the sale of the property, refinancing onto a conventional mortgage or the completion and refinance of a development project.
Interest can either be serviced monthly or rolled up and repaid at the end of the term as part of the exit.
Bridging facilities can range from smaller loans of around £25,000 through to multi-million-pound transactions.
Borrowing levels are determined by loan-to-value ratios, the type and quality of the asset and the strength and credibility of the proposed exit strategy.
Bridging finance is typically priced on a monthly basis and is generally more expensive than long-term mortgage lending due to its short-term and flexible nature.
Costs may include lender arrangement fees, valuation fees, legal costs and broker fees. Because these facilities are designed as short-term solutions, a clear and credible repayment plan should always be established before proceeding.
Bridging finance is structured around speed, leverage and exit clarity.
We work across banks, specialist lenders and private funders to identify appropriate short-term funding solutions based on asset type, timing and repayment strategy, prioritising certainty of execution over headline pricing.
A bridging loan is short-term secured finance arranged for a defined period, designed to provide immediate capital until a sale, refinance or other exit event completes.
It is commonly used where a property must be purchased before an existing one is sold, for auction acquisitions or in other time-sensitive transactions where speed is critical.
Deposit requirements are typically higher than standard residential mortgages.
Most bridging lenders advance between 65–75% loan-to-value, meaning a contribution of 25–35% is common. Higher leverage is available in certain structured scenarios, but pricing and risk will reflect this.
The strength of the asset and credibility of the exit strategy are key factors in determining maximum borrowing.
Qualification is typically based on the strength of the security and the credibility of the exit strategy, rather than personal income alone.
Lenders will usually consider:
The value and type of property being used as security
Loan-to-value ratio
A clear and realistic repayment plan
Your overall financial profile
The purpose of the loan
Bridging finance can be arranged for individuals, partnerships or limited companies. Each proposal is assessed on its individual merits.
Bridging finance carries a higher level of risk than long-term mortgage lending due to its short-term nature and cost structure.
The primary risk relates to the exit strategy. If a planned sale or refinance is delayed, interest may continue to accrue and extensions may be required, potentially increasing overall cost.
Careful planning, realistic timescales and sufficient equity can significantly reduce risk, but a clear and credible repayment strategy is essential before proceeding.
In simple cases, bridging loans can complete within days. More complex transactions typically complete within one to two weeks, subject to valuation and legal due diligence.
Yes. Bridging finance is often used to acquire properties that are not suitable for standard mortgage lending, for example, where there is no kitchen or bathroom, structural issues, or short leases.
The intention is typically to refurbish or stabilise the property before refinancing onto a long-term facility.
Yes. Many bridging loans are repaid through refinancing onto a residential, buy-to-let or commercial mortgage once the property is mortgageable or works are complete.
The exit strategy should be realistic and assessed before the bridging facility is arranged.
Yes. Bridging finance can be used for commercial acquisitions, land purchases, auction transactions or short-term business liquidity where property security is available.
The structure will depend on asset type and exit plan.
