When you need quick finance but traditional mortgages won’t work, bridging loans offer a solution.
These short-term property loans can complete in days rather than months, making them perfect for time-sensitive purchases or project funding.
But timing matters.
Choose a term that’s too short and you might struggle to repay. Go too long and you’ll pay much more in interest. Understanding typical bridging loan durations helps you make better borrowing decisions.
In this guide, we’ll examine standard bridging loan terms, what affects them, and how to choose the right length for your needs. We’ll cover regulated and unregulated loans, costs for different terms, and what happens if you need an extension.
What is a Bridging Loan?
A bridging loan is short term funding secured against property.
You might use one to buy a property before selling your existing home, buy at auction or fund renovations. These loans range from £150,000 to £25 million.
Think of it as a temporary fix – getting you from A to B when standard finance won’t do. The main advantage is speed – funds arrive in 1-2 weeks rather than months for a standard mortgage.
Read more: An introduction to bridging loans
Typical Bridging Loan Terms
The shortest bridging loans are just one month but most lenders prefer 3 month minimum terms.
Very short terms work well when you’re certain of quick repayment – perhaps you’re waiting for a house sale to complete or expecting inheritance funds.
Most bridging loans are 3-12 months. This timeframe is suitable for:
- Property sales
- Renovation projects
- Arranging long term finance
Industry stats show that average bridging loans are 12 months – long enough to achieve your goals without excessive interest costs.
Some lenders offer up to 36 month terms but this isn’t standard practice. Extended bridging loans are expensive and most lenders want to see clear exit plans within 12-18 months.
Get access to expert brokers and specialist bridging lenders
Regulated vs Unregulated Bridging Loans
Bridging loans secured against your home are FCA regulated. These regulated loans have a maximum 12 month term.
Business or investment borrowing is usually unregulated. These loans can go up to 24 or 36 months with a wider choice of lenders. But remember – longer terms mean more interest payments
What Affects Your Loan Term?
Different properties need different timeframes:
- Residential properties are usually 3-12 months
- Commercial projects are 12-24 months
- Development work is 12-18 months
- Land purchases with planning applications are 18-24 months
Your exit strategy – how you’ll repay the loan – determines the term. Common exit strategies are selling the property, switching to a traditional mortgage or completing and selling a development project.
Lenders will consider your experience with property or business, previous loan history and the quality of security when setting terms.
Extending Your Loan
Plans change – perhaps your property sale takes longer or building works overrun. Some lenders, but not all, will consider an extension if you’ve made payments and have a solid revised exit strategy.
Extensions bring extra fees and potentially higher rates so it’s better to plan a realistic term from the start.
If you find that you need to extend your bridging loan but the lender refuses, you could consider a refinance bridging loan.
Also known as a ‘re-bridge’ it’s similar in principle to remortgaging your home. You take out a new bridging loan to repay the one you have already.
It’s really important not to go over the initial loan term, as the interest rate then gets hiked up.
Who Can Have One?
Bridging loans are available to anyone who has a property for it to be secured against.
They are open to individuals, joint applicants, partnerships, companies, LLP and SPV.
You don’t need to already own a property or even have an existing mortgage.
Next Steps
Bridging loans are 3-12 months but some go up to 36 months. Your circumstances, property type and exit strategy will determine the right term.
Go for shorter terms where you can to save costs. Remember regulated loans (secured on your home) can’t exceed 12 months. Always have a clear exit strategy.
Want to talk bridging finance?
Contact one of our recommended independent brokers for a personal consultation on the best loan term and lender for you.
Frequently Asked Questions
Bridging loan terms.
One month.
You will see many loans advertised with a minimum term of one month, in practise, most lenders prefer minimum terms of three months due to setup costs and administrative requirements.
Yes, unregulated bridging loans can extend up to 36 months, but regulated loans (secured on your home) have a 12-month maximum.
Most lenders will consider extending the term if you’ve maintained payments and have a revised exit strategy. However, this usually involves additional fees and higher interest rates.
Yes, most lenders allow early repayment. Some charge exit fees, but many offer this without penalties.
12 months maximum for regulated loans (those secured against your primary residence).
You must repay the full amount through your exit strategy – usually selling the property, refinancing, or using other confirmed funds.
The amount due will be the original amount borrowed, plus fees and interest.
No, maximum and minimum terms vary between lenders. Specialist lenders often offer more flexible terms than mainstream banks.
