Bridging loans, arranged in days

A bridging loan is a short-term loan, usually for up to 12 months and sometimes as long as 24, secured against property. It bridges a temporary funding gap: buying a new property before your current one sells, for example, or completing an auction purchase. Interest is charged monthly, and you repay the loan in one lump sum when your exit, a sale or a refinance, completes.

Much faster than a mortgage, because lending is based on the property and your exit rather than lengthy affordability checks. A decision in principle can come within hours, and funds can be released within a week once the valuation and legal work are done. Auction and chain-break cases are often prioritised.

From around £25,000 up to £100 million or more, depending on the property's value and the loan-to-value. Most bridging is capped around 75% LTV, though higher can sometimes be arranged with additional security. There's no fixed maximum; it depends on the deal.

LTV is the loan expressed as a percentage of the property's value. Borrow £150,000 against a £300,000 property and the LTV is 50%. Lenders cap LTV to protect against the property selling for less than expected, and a lower LTV usually means a lower rate. You may also see "gross" (the total including rolled-up interest and fees) versus "net" (what you actually receive).

Bridging is priced as a monthly interest rate, from around 0.55% a month, rather than an APR, because it's short-term. On top of interest you'll typically pay an arrangement fee (usually 1 to 2%, often added to the loan), a valuation fee, legal fees for both sides, and sometimes an exit or admin fee. We set out every cost clearly before you commit.

It depends on the interest type. With serviced interest, you pay it monthly. With retained interest, the lender takes the whole term's interest from the advance up front. With rolled-up interest, nothing is paid monthly; the interest is added to the loan and settled in one payment at the end. Rolled-up is popular when cash flow is tight before the exit.

A closed bridge has a fixed repayment date, for example when you've already exchanged on the sale of your existing home. An open bridge has no fixed date but still needs a clear, realistic exit. Closed bridges are usually a little cheaper because the lender's risk is lower.

A first charge bridge is the main loan secured against the property. A second charge sits behind an existing mortgage, so the first lender has to consent, and the rate is usually a little higher because that lender gets repaid first if the property is sold.

Your exit is how you'll repay the loan, most often by selling the property, selling another asset, or refinancing onto a term mortgage or buy-to-let. Lenders want to see a credible, evidenced exit before they lend, and a strong exit can get you a better rate.

It depends on how the property is used. A bridge is FCA-regulated when it's secured against a property that you or a close family member live in or plan to live in, which carries full consumer protection. A bridge for an investment, buy-to-let, commercial or company-owned property is unregulated. As an FCA-authorised broker (FRN 1013885), we arrange both and will tell you which applies to your case.

Often, yes. Because bridging is based on the asset and the exit rather than a long income assessment, adverse credit such as CCJs, defaults or arrears is more workable than with a mainstream mortgage. The rate may be higher, and a strong exit matters most. It's worth talking to us rather than assuming you'll be turned down.

Yes, it's one of the most common uses. Auction purchases usually have to complete within 28 days, too fast for a standard mortgage. A bridge can be arranged to that deadline, effectively making you a cash buyer, and later refinanced onto a mortgage as your exit.

The monthly rate is higher than a mortgage, but you only pay it for a short time, so the total cost can still be modest. A bridge can also unlock a deal, such as an auction lot, a below-market purchase or a broken chain, that a mortgage simply isn't fast enough to reach. It comes down to picking the right tool for a short-term need rather than long-term borrowing.

Some mortgage lenders won't remortgage a property you've owned for less than six months, which can affect a refinance exit. It's a common trip-up on refurbish-and-refinance deals, so we plan the exit around it from the start.

Yes, refinancing onto a term mortgage or buy-to-let is one of the most common exits. We can line up the onward mortgage alongside the bridge so the switch is smooth.

No. Martin Lewis and MoneySavingExpert publish guidance but don't lend or arrange loans themselves. To actually arrange a bridge you need a lender or an FCA-authorised broker, which is what we do, across the whole market.

A wide range of lenders offer bridging finance, from specialist short-term lenders to some more familiar banking names, but rates, criteria and speed vary enormously between them. Our panel includes specialist bridging lenders such as LendInvest, Shawbrook, MT Finance, InterBay and West One. As a whole-of-market broker, we place your case with whichever one fits your deal and deadline, rather than you approaching lenders one at a time.

Yes. We arrange bridging finance across the whole of the UK, including Scotland. Scottish property transactions run under Scots law, using a standard security and a different conveyancing process, so we match you with lenders who know their way around a Scottish deal to keep completion fast.