Bridging Loan FAQ

In the UK, a bridging loan works by providing short-term finance secured against property or land. You borrow a lump sum, either to:

• Purchase a property quickly
• Release capital from an existing asset
• Fund a refurbishment or short-term project

Repayment is usually made through:

• Sale of the property
• Refinancing onto a longer-term mortgage
• Business income or other agreed method

You’ll either pay interest monthly or have it rolled up (added to the loan and paid at the end). Once the term ends, usually between 1 and 24 months, you settle the loan in full.

Bridging loans can be a good idea if used for the right reasons. They’re ideal when:

• You need to move fast (e.g., auction purchase)
• Your long-term finance isn’t ready yet
• You’re waiting for a sale to complete
• You’re refurbishing a property for resale or refinance

That said, bridging loans aren’t cheap and should only be used when you have a clear repayment plan. They’re a tool, not a long-term solution.

The cost of a bridging loan depends on several factors:

• The loan amount and term
• Loan-to-value (LTV) ratio
• Type and location of the property
• Your credit profile and exit strategy

In the UK, bridging loan rates typically vary depending on your requirements and factors such as credit. On top of that, you may pay:

• Arrangement fees (typically is 1–2%)
• Valuation fees
• Legal costs
• Exit fees (in some cases)

We’ll always provide a full cost breakdown upfront, no hidden fees, no guesswork.

Yes, you can get a bridging loan to buy a house, especially if:

• You’re buying before selling your current property
• You’re purchasing at auction
• There’s a break in the property chain
• You’re buying a non-standard property that a regular lender won’t touch

Whether you're moving home, investing, or buying to refurbish, bridging can provide the speed and flexibility mainstream lenders can’t.

We can often complete a bridging loan within 5 to 14 days, depending on the complexity of the case.

Here’s what can affect timing:

• Speed of valuation and legal work
• Borrower readiness (docs in order, exit strategy defined)
• Whether the deal involves multiple properties or parties

For urgent cases, we’ve completed them in as little as 72 hours, but that requires fast cooperation on all sides.

Alternatives to bridging loans include:

• Traditional mortgages: Suitable for longer-term borrowing but slower to arrange
• Secured loans: Can be used for borrowing against existing property, though not always ideal for short-term needs
• Personal loans: Limited by loan size and usually unsecured
• Development finance: For ground-up projects or heavy refurbishments
• Mezzanine finance: Often used in layered or complex property deals

Each option has pros and cons, depending on your timeline, exit strategy, and risk profile.