Question 1

What is a bridging loan?

Accepted Answer

A bridging loan is short-term property finance, usually 3 to 24 months, secured against UK property. It bridges the gap between needing funds now (e.g. an auction completion or chain break) and a longer-term exit such as a sale or remortgage.

Question 2

How fast can a bridging loan complete?

Accepted Answer

Specialist bridging lenders can complete in as little as 5 to 10 working days on a clean, well-prepared case. More typical timelines are 2 to 4 weeks. The 28-day auction completion deadline is achievable when paperwork is ready upfront.

Question 3

What do bridging loans cost?

Accepted Answer

Bridging interest is quoted monthly (usually between 0.5% and 1.5% per month) rather than annually. There are also arrangement fees, exit fees on some lenders, valuation fees and legal fees. Total cost depends on loan size, LTV, term and the chosen exit route.

Question 4

Do I need to own property already to get a bridging loan?

Accepted Answer

Not always. Most bridging lenders take security over the property being purchased; some require additional security if the loan-to-value or risk profile demands it. First-time buyers can use bridging in specific situations, but advised cases tend to favour applicants with existing equity.

Question 5

When does a bridging loan make sense?

Accepted Answer

Auction purchases with tight deadlines, chain breaks during a residential sale, refurbishment-then-refinance projects, and short-term cash needs against a property exit. It rarely makes sense as a long-term solution — the higher cost is justified by speed or short-term need.