Bridging finance provides short-term funding for property transactions where traditional mortgage timescales may not be suitable. It can support residential and commercial property purchases, refurbishment projects, auction acquisitions and other situations where temporary finance is required before a longer-term funding solution is in place.
Every bridging loan should begin with a clearly defined exit strategy. Selecting the right finance for your circumstances is an important part of ensuring the borrowing supports both your immediate objective and your wider property plans.
Bridging loans are secured against property, which may be repossessed if you do not keep up repayments. Most bridging finance is not regulated by the Financial Conduct Authority; however, where a loan is secured against a property occupied, or to be occupied, by you or a member of your family, it may be a regulated mortgage contract.
Bridging finance is used across a wide range of property transactions, with different lending considerations depending on the type of property and the purpose of the borrowing. Explore the options below to find the one that best fits your property objectives.
Residential bridging loans provide short-term finance for residential property transactions where speed or flexibility is required. They can support purchases, refinancing and refurbishment projects while longer-term finance or the sale of a property is being arranged.
Commercial bridging loans provide temporary funding for commercial and mixed-use property transactions. They can be used to support acquisitions, refinancing, refurbishment projects and other business-related property requirements where short-term finance is appropriate.
Bridging finance differs significantly from traditional mortgage lending. Loan structure, security, exit strategy and lender requirements all play an important role when arranging short-term finance. Professional advice helps you compare the available options and select a solution that supports your property objectives.
Bridging loans are available with different repayment structures and lending terms. Understanding how these arrangements operate helps ensure the finance is appropriate for your circumstances.
Every bridging loan should have a clearly defined repayment strategy before completion. Considering how the loan will be repaid is an essential part of the lending process.
Interest rates represent only one part of the overall borrowing cost. Product fees, valuation costs, legal fees and other associated charges should all be considered before proceeding.
Lending criteria often differ between residential and commercial bridging finance. Understanding these differences helps identify suitable borrowing solutions for each property type.
Property type, intended use and the purpose of the borrowing all influence the finance available. Reviewing these factors together helps identify the most appropriate lending approach.
Providing complete and accurate information from the outset enables lenders to assess an application more efficiently and can help reduce unnecessary delays.
Bridging lenders often have different lending criteria from mainstream mortgage providers. Comparing specialist lenders and understanding their individual requirements supports more informed borrowing decisions.
Estimate the potential cost of short-term borrowing by adjusting the loan amount, interest rate and loan term. The calculator provides an indication only and should not be relied upon as financial or mortgage advice.
