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Bridging finance
Short-term bridging finance for property transactions that need quick completion, such as chain breaks, property development, or auction purchases. These loans typically have higher rates but provide fast access to funds.
Reviewed by David Sampson, Founder & Director
What is bridging finance?
Bridging loans are short-term secured finance, typically lasting 1-24 months, used to 'bridge' a funding gap — for example, purchasing a new property before selling an existing one. Interest is usually charged monthly at 0.4%-1.5% and the loan is repaid through a defined exit strategy.
How does bridging finance work?
1
Initial Enquiry
Same dayDiscuss urgency, property and exit strategy
2
Indicative Terms
24-48 hoursReceive outline terms and estimated costs
3
Full Application
1-2 daysSubmit documents and property details
4
Valuation
3-5 daysFast-track property valuation arranged
5
Legal Review
1-2 weeksSolicitors review title and prepare documentation
6
Completion
2-4 weeksFunds released, often faster for urgent cases
What do lenders look for on bridging finance?
Borrower profile
- Clear exit strategy for the loan
- Strong financial position and credit history
- Adequate deposit and reserves
- Property investment experience preferred
- Professional team in place
Property requirements
- Suitable property type and condition
- Good location and market value
- Clear title and legal ownership
- Adequate insurance coverage
- Realistic valuation and market conditions
What fees come with bridging finance?
Arrangement Fee
Facility fee
1.5% - 2%
of loan amount
Valuation Fee
Fast-track property valuation
£500 - £2,000
expedited service
Legal Fees
Dual representation possible
£1,000 - £2,500
both sides
Exit Fee
Charged on redemption
0% - 1.5%
varies by lender
Broker Fee
Bridging arrangement
0.5% - 1.5%
on completion
Fees vary by lender. Advisers provide a breakdown before you proceed. Mortgage118 does not quote fees.
Resources
Brokers
455 bridging brokers in this directory
| # | Broker | Verified | Rating |
|---|---|---|---|
1 | 5.0 (334) | ||
2 | 5.0 (164) | ||
3 | 5.0 (81) | ||
4 | 5.0 (40) | ||
5 | 5.0 (39) | ||
6 | 5.0 (38) | ||
7 | 5.0 (16) | ||
8 | 5.0 (10) | ||
9 | 5.0 (8) | ||
10 | 5.0 (5) |
Showing 10 of 455 brokers. Compare the full shortlist.
FAQs
How quickly can I get bridging finance?
Bridging finance can typically be arranged within 5-14 days, depending on the complexity of the case and the lender's requirements. Some lenders can provide funds even faster for straightforward cases.
What is an exit strategy for bridging finance?
An exit strategy is your plan to repay the bridging loan, such as selling the property, refinancing with a traditional mortgage, or using other funds. Lenders require a clear and realistic exit strategy before approving the loan.
Do I need to make monthly payments on bridging finance?
No, most bridging loans have rolled-up interest, meaning you don't make monthly payments. The interest is added to the loan balance and repaid when you exit the loan. However, some lenders offer monthly payment options.
What property types can I use bridging finance for?
Bridging finance is available for residential properties, commercial properties, land, and mixed-use properties. The specific criteria and terms may vary depending on the property type and intended use.
How much can I borrow with bridging finance?
Bridging loans typically range from £50,000 to £10 million or more, with loan-to-value ratios usually between 65-75% of the property value. The exact amount depends on the property, your circumstances, and the lender's criteria.
What are the typical interest rates for bridging finance?
Bridging finance rates typically range from 0.85% to 1.25% per month, which is higher than traditional mortgages due to the short-term nature and increased risk. Rates may vary based on the loan amount, property type, and your circumstances.
Can I get bridging finance with adverse credit?
Some specialist lenders may consider bridging finance for borrowers with minor credit issues, though the criteria may be stricter and rates higher. You'll typically need a larger deposit and a strong exit strategy.
What happens if I can't exit the bridging loan on time?
If you can't exit on time, you may face higher interest rates, additional fees, or the lender may take possession of the property. It's crucial to have a realistic exit strategy and contingency plans in place.
Can I use bridging finance for a chain break?
Yes, bridging finance is commonly used for chain breaks, allowing you to complete your purchase while waiting for your property to sell. This can help prevent the chain from collapsing and losing your dream home.
What documents do I need for bridging finance?
You'll need proof of income, bank statements, property details, exit strategy documentation, and evidence of your deposit. The exact requirements vary by lender and the complexity of your case.
Related Articles
Practical guides and explainers from our blog — relevant to bridging finance.
MFS Collapse Triggers Caution in Bridging Finance
The collapse of MFS has raised concerns in the bridging finance sector, prompting lenders to reassess funding strategies.
14 Oct 2026Bridging
Somo Provides Second Charge Bridge to Assist Landlords
Somo has provided a second charge bridge to assist landlords with arrears, allowing them to use property equity without redeeming first charges.
13 Oct 2026Bridging
Nivo Launches AI Case Management for Bridging Finance
Nivo has launched Lender Collect, an AI case management service for bridging finance, streamlining the application process for lenders and brokers.
9 Oct 2026Bridging
Bridging Finance: 85% of Offers Now Fixed Rate
Octane Capital reports that 85% of its bridging finance offers are now fixed-rate, indicating a strong demand for stability among borrowers.
6 Oct 2026Bridging
UTB Secures £16.2m Bridging Finance for London Asset
UTB has provided £16.2 million in refinancing for a mixed-use property in South London, highlighting the role of bridging finance in long-term investments.
5 Oct 2026Bridging
Understanding Bridge-to-Term Mortgages in the UK
Bridge-to-term lending is gaining traction, offering a seamless transition from short-term to long-term financing for property investors.
5 Oct 2026Bridging
Important: Your home may be repossessed if you do not keep up repayments on your mortgage. Information on this page is for general guidance only and does not constitute financial advice.Always verify details directly and seek independent advice before making financial decisions.