Bridging loans

What a bridging loan is used for

A bridging loan is short-term borrowing secured against a property. It is commonly used to complete a property purchase before another sale finishes, buy at auction, fund renovations before refinancing, or cover a gap in a chain. Because terms are usually measured in months rather than years, a clear repayment plan is essential.

How a bridging loan works

Bridging loans typically run from a few weeks up to around eighteen months. Interest may be paid monthly, rolled up and repaid at the end, or deducted from the loan when it is released. Most lenders require an exit plan—usually the sale of a property or refinancing onto a longer-term mortgage—and may ask for evidence of how that exit will happen.

Understanding the costs

Bridging finance usually costs more than a standard mortgage. Expect arrangement fees, valuation and legal costs, exit fees and potentially higher interest rates. Where interest is rolled up, it can compound and increase the amount owed, so compare the total cost of borrowing for the whole term, not just the monthly figure.

Regulated and unregulated bridging

When a bridging loan is secured on a home that you or your family live in, it is usually regulated by the Financial Conduct Authority. Loans secured on investment or commercial property often fall outside FCA regulation, which changes the protections available. We will always explain which type applies to your case and what that means for you.

A friendly conversation about your plans

Tell us what you are buying, what will repay the loan and how quickly you need to move. We review the property, your circumstances and your exit plan, then explain suitable options, fees, risks and total costs before you decide. No lender approval is guaranteed.

Questions about bridging loans