Bridging finance

Bridging loans for developers and property investors

Short-term, property-secured funding for companies that need to act before long-term finance is in place — to buy, refurbish, restructure or release capital.

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What a bridging loan is

A bridging loan is a short-term facility secured against property, usually running for between three and twenty-four months. It is designed to be repaid from a clearly defined event — the sale of the asset, a refinance onto a term loan, or a move into development finance.

Because the loan is short, lenders concentrate on two things above all else: the value of the security and the credibility of the exit. Trading income and personal earnings matter far less than with a mortgage, which is why bridging is often the right tool when a property cannot yet be mortgaged or when time is the deciding factor.

Interest can be retained (deducted from the advance for the full term), rolled up, or serviced monthly. The right choice depends on your cash flow and how certain the exit date is — we model each option before a lender is approached.

Typical uses

Buying a property that is not yet mortgageable — unmodernised, non-standard or partly vacant
Completing at auction inside a fixed 28-day deadline
Funding a light or heavy refurbishment before refinancing or selling
Securing land ahead of a planning decision
Releasing equity from finished units while sales complete
Replacing a lender whose term has expired or whose terms no longer fit
Raising a deposit for a new purchase against property you already own

What lenders will look at

An independent valuation of the security, usually by a RICS surveyor on the lender’s panel
The exit: sales evidence, a realistic refinance case, or a planning route
The borrower’s experience with similar projects
The source of any equity going into the deal
Clean title, and the legal and planning position of the property

Bridging solutions

Bridging for specific situations

Each situation has its own lender appetite and pitfalls. Choose the one closest to yours.

Questions

Frequently asked questions

How quickly can a bridging loan complete?

Speed is mostly driven by the valuation and the legal work rather than the credit decision. A straightforward case with a prepared borrower and responsive solicitors can complete in a matter of weeks; complex title, leasehold issues or multiple securities take longer. We set out a realistic timetable at the start and manage it with you.

What is the difference between retained, rolled-up and serviced interest?

Retained interest is calculated for the full term and held back from the advance, so there is nothing to pay monthly. Rolled-up interest accrues and is paid on redemption. Serviced interest is paid monthly from your own funds, which typically increases the net amount you can borrow. Our bridging calculator shows how each affects the net release.

Can I borrow through a newly formed SPV?

Yes. Most bridging lenders are comfortable lending to a newly incorporated special purpose vehicle, provided the directors and shareholders are identified and usually give personal guarantees.

Is a bridging loan more expensive than a mortgage?

Usually, on an annualised basis. The value of a bridge lies in speed and flexibility over a short period. The right comparison is the total cost of the bridge against the profit or saving it unlocks — which is why we focus on the whole deal, not just the rate.

Have a bridging deal in front of you?

Send us the headline numbers. We will tell you plainly whether it is fundable, how we would structure it, and what we would need to take it to lenders.

Start a bridging application Email us