How to Get a Bridging Loan: Your Guide to Quick Property Finance

Looking for quick property finance?

A bridging loan might be exactly what you need. These short-term loans help property buyers, investors, and businesses access funds quickly when standard mortgages aren’t suitable or fast enough.

Whether you’re buying at auction, need to complete a property purchase before your existing home sells, or want to renovate a property that’s currently unmortgageable, bridging finance could be the answer.

We’ll show you everything you need to know about getting a bridging loan in the UK.

What is a Bridging Loan?

A bridging loan is a short-term secured loan that shares some similarities with a mortgage.

But bridging loans only last from 3 to 24 months.

Think of it as a temporary loan that helps you get from point A to point B. The debt is secured against property or land and can be arranged really quickly – often within just a few days.

Unlike standard mortgages that can take months to arrange, bridging loans are designed for speed and flexibility.

They’re particularly useful when you need funds quickly or when other lenders won’t help due to the property’s condition or your circumstances.

Read more: An introduction to bridging loans

Common Uses for Bridging Loans

Bridging loans serve many purposes in the UK property market. They were originally offered by banks in the 1960s to help certain valued customers with property chain related issues.

But now they are widely available and super flexible.

Here are some typical situations where they’re used:

Property Auction Purchases

When you buy a property at auction, you’ll need to complete the deal within 28 days.

That’s too quick for a standard mortgage, but perfect for a bridging loan. You can use the loan to secure your auction purchase, then either sell the property or refinance to a traditional mortgage later.

Breaking Property Chains

Say you’ve found your perfect home but haven’t sold your current property yet.

CHAINA bridging loan lets you buy the new property without waiting for your existing home to sell. This can prevent you from losing out on your dream home and break away from the property chain.

Property Renovations

Many properties aren’t suitable for standard mortgages because they need significant work – like properties without kitchens or bathrooms.

A bridging loan can fund both the purchase and renovation costs. Once the work’s complete, you can refinance to a standard mortgage or sell the property.

Business Funding

Business owners often use bridging loans to seize time-sensitive opportunities.

Maybe you need to buy stock at a discount, fund an expansion, or buy business premises quickly. A bridging loan can provide the short-term capital you need.

Development Projects

Property developers use bridging loans to quickly and easily buy land or properties for development.

The loan can cover the purchase price and sometimes part of the build costs. Once the project is complete, the developer either sells the property or refinances to a longer-term finance arrangement.

Each of these uses has its own considerations and requirements. The key is having a clear plan for how you’ll repay the loan – what lenders call your “exit strategy.” This might be selling a property, refinancing to a traditional mortgage, or using business profits.

Who Can Get a Bridging Loan?

You might be surprised at how many different types of borrowers can access bridging finance.

While mortgages have quite rigid lending criteria, bridging loans are a lot more flexible. Let’s look at what lenders typically expect from borrowers.

Basic Requirements

Age Requirements

You’ll need to be at least 18 years old to apply for a bridging loan.

While there’s usually no upper age limit, some lenders might restrict longer terms for older borrowers. That said, since bridging loans are short-term by nature, age is often less of a concern than with traditional mortgages.

Residency Status

Lenders will ideally want you to be a UK resident or have a UK registered address.

But that doesn’t mean non-UK residents are completely excluded. Many lenders work with foreign nationals and UK expats – they just might need additional documentation.

If you’re based overseas, you’ll just need to show how you’ll manage the property and loan from abroad.

Property Types

Here’s where bridging loans really shine.

Bridging lenders are very open-minded about the type of property and its condition.

They’ll consider:

Residential properties (even if they need renovation)
Commercial buildings
Mixed-use properties
Land (with or without planning permission)
Non-standard construction properties

Even properties that traditional lenders won’t touch – like homes without kitchens or bathrooms – can be financed through bridging loans.

The property just needs to offer good security for the loan.

Credit History

You might think a perfect credit score is essential, but that’s not always the case with bridging loans. While a good credit history helps, lenders are more interested in:

The property’s value
Your exit strategy (how you’ll repay the loan)
The amount of deposit you can provide

Even if you’ve had credit problems in the past, many bridging lenders will still consider your application.

They’ll look at your current situation and explanation for any past issues. Some might charge higher interest rates to reflect the increased risk, but having less-than-perfect credit doesn’t automatically rule you out.

What matters most to bridging lenders is security and exit strategy. If you can show you’ve got a solid plan for repaying the loan and the property offers good security, many lenders will be happy to work with you despite credit blips.

Remember, every lender has different criteria, and working with a specialist broker can help you find one that matches your circumstances.

It’s worth noting that while bridging loans can be more flexible than traditional mortgages, they’re not suitable for everyone. You’ll need to carefully consider the costs and risks before proceeding.

Related reading: Do Bridging Lenders Always Need Credit Checks?

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Types of Borrowers

Bridging loans work for all sorts of people and businesses.

Let’s talk about who uses these loans and how they put them to work.

Individual Borrowers

If you’re buying a property personally, whether it’s to live in or as an investment, you can apply for a bridging loan in your own name, or jointly with a spouse or JV partner.

This might be right for you if you’re buying a property at auction, breaking a chain, or renovating a house that needs work before it’s mortgageable. The main thing is having a clear plan for how you’ll pay back the loan.

Limited Companies

Many property investors use SPV limited companies to buy properties – it’s become more popular since the tax changes for buy-to-let landlords.

Bridging lenders are well used to lending to limited companies. You’ll usually need to provide a personal guarantee, but the loan itself sits within your company structure.

Property Developers

Whether you’re an experienced developer or working on your first project, bridging loans can help fund your developments.

They’re particularly useful when you need to move quickly on an opportunity or when a property needs work before a development finance lender will get involved.

Some developers use bridging loans to quickly buy a site while they’re getting planning permission or development finance sorted out.

Business Owners

Running a business means sometimes needing quick access to funds – maybe you’ve spotted a great opportunity that won’t wait for a traditional loan application.

Maybe you’ve got a big tax bill to fund.

Business owners often use bridging loans to buy commercial premises, especially if the building needs renovation before a commercial mortgage lender will look at it.

Trading companies are welcome, whether it is a loan for cash-flow purposes, business expansion or to cover the VAT on a commercial property purchase.

Offshore Entities

If you’ve got an offshore company structure, don’t worry – many bridging lenders will still work with you.

They’ll need to do extra checks to satisfy anti-money laundering requirements, but offshore borrowing is a normal part of the bridging market. You might find fewer lenders willing to help, but there are specialists who regularly work with offshore structures.

Each type of borrower has different needs and considerations.

The key is working with a broker who understands your particular situation and can structure the deal accordingly.

Remember, whichever category you fall into, the lender’s main concerns will be the same: is the security good enough, and how will you pay back the loan?

Get these two things right, and you’re well on your way to securing bridging finance.

How Much Can You Borrow?

The amount you can borrow with a bridging loan mainly depends on the value of the property you’re using as security.

But there’s quite a bit more to it than that. Let’s break it down in a way that’s easy to understand.

Understanding Loan-to-Value (LTV)

Let’s start with what LTV actually means – it’s simply the percentage of the property’s value that a lender will let you borrow.

For example, if a property’s worth £200,000 and you can borrow £150,000, that’s a 75% LTV.

Most bridging lenders offer loans up to 75% LTV on residential properties, though some will go higher in the right circumstances. But here’s where it gets interesting – the type of property and its condition can make a big difference.

For standard residential properties in good condition, you might get up to 75-80% LTV.

Commercial properties typically come in a bit lower, usually around 65-70% LTV. If you’re looking at land, expect even lower – maybe 50-60% LTV, or even less if there’s no planning permission.

But what if you need to borrow more?

Well, that’s where additional security comes in handy.

You can use other properties you own as extra security. This might let you borrow more to put towards the main property – some lenders will even go up to 100% if you’ve got enough additional security.

The condition of the property matters too.

If it needs renovation work, lenders will base their LTV on the current value rather than what it’ll be worth after improvements. Some lenders will consider the ‘after repair value’ (ARV), but they’ll want to see detailed plans and costings.

Remember, just because a lender offers a certain LTV, doesn’t mean you should automatically borrow the maximum. The more you borrow, the more interest you’ll pay, so it’s worth putting in as much deposit as you comfortably can.

Also, keep in mind that different lenders have different appetites for risk.

Some might offer higher LTVs but charge higher interest, while others might have lower LTVs but better rates. This is where working with a good broker can really help – they’ll know which lenders offer the best combination of LTV and rates for your situation.

Property Valuation Process

Getting your property valued is a key step in securing a bridging loan.

When a bridging lender looks at a property, they’re interested in two main things: what it’s worth now, and how easily they could sell it if they needed to.

They’ll send out a professional valuer who’ll assess both the current market value and what’s called the ‘forced sale value’ – typically around 75-80% of the market value.

Most lenders will want a full physical valuation, especially for larger loans or max LTV cases.

Sometimes, for smaller loans on standard properties, they might accept a desktop valuation or automated valuation model (AVM). But here’s the thing – physical valuations give everyone more confidence, and they often lead to better loan terms.

The valuation usually takes place within a few days of you paying the fee.

The valuer will need access to all parts of the property, so you’ll need to arrange this with the current owner if you’re buying. The whole process, from paying the fee to getting the report, usually takes about 7-14 days.

How to Apply

Paperwork time!

Don’t worry – it might seem like a lot, but your broker can help you get everything together.

Property Details

You’ll need to provide information about the property you’re using as security. This includes the address (of course), but also things like:

Current use and any planned changes
Details of any tenants if it’s rented
Information about any work needed
Planning permissions if you’re making changes
Photos of the property

Proving Who You Are

Banks and lenders need to know exactly who they’re lending to. You’ll need to show:

Your passport or driving licence
Recent utility bills or bank statements showing your address
If you’re applying through a company, you’ll need company documents too

Your Financial Picture

Lenders want to understand your overall financial situation. They’ll ask for:

Bank statements (usually the last 3-6 months)
Details of any other properties you own
Information about other loans or mortgages
A summary of your assets and debts

The All-Important Exit Strategy

This is really where bridging loans differ from other types of lending.

You’ll need to show exactly how you plan to pay back the loan.

This might include:

Property sale details if you’re planning to sell
Mortgage agreements in principle if you’re refinancing
Evidence of other funds coming in
Details of any backup plans

If you’re selling a property, the lender might want to see proof it’s being marketed. If you’re planning to refinance, they’ll want to see that you’ve started that process.

The more evidence you can provide to support your exit strategy, the better.

Remember, while this might seem like a lot of paperwork, it’s actually less than you’d need for a mortgage. And because bridging loans are processed quickly, you won’t be waiting weeks for everything to be checked.

Timeline and Steps

One of the best things about bridging loans is how quickly they can be arranged. Here’s what happens and when, so you know what to expect.

The Initial Enquiry

Everything starts with a conversation about what you need. Your broker will ask about the property, how much you want to borrow, and how you plan to pay it back. This helps them find the right lender for you. Based on this, you can often get an initial Agreement in Principle decision within hours.

Making an Application

With a successful Agreement in Principle in place, it is then time to make a formal loan application. After a basic check for eligibility the lender will then credit search all of the applicants.

Getting Your Valuation

Next the lender will need to arrange a valuation. This usually happens within 2-3 days of you paying the valuation fee. The valuer’s report typically comes back in another 2-3 days.

Legal Work

The legal process is where things can sometimes slow down a bit. Your solicitor will need to do searches and check the property’s title.

The actual timeframe varies depending on how complex your case is. A straightforward bridging loan might complete in 5-10 days. More complex cases could take 2-3 weeks. The key is having all your documents ready and responding quickly to any requests.

Exit Strategies

Let’s talk about how you’ll pay back your bridging loan. This is probably the most important part of your application – lenders need to know exactly how they’ll get their money back.

Acceptable Exit Routes

Property Sale

Selling the property is one of the most common ways to repay a bridging loan.

Maybe you’re buying somewhere that needs work before it can be sold on, or you’re waiting for your current home to sell.

The lender will want to see:

Evidence the property’s being marketed (if it’s already for sale)
Local property market information
Recent comparable sales in the area
Any improvements you’re planning that might help the sale

Refinancing to a Different Mortgage

Another popular option is refinancing to a long-term mortgage such as a buy to let mortgage or holiday let mortgage.

This works well when you’re buying a property that needs work before a traditional lender will consider it.

You’ll need to show:

Details of any improvements you’re planning
A mortgage agreement in principle from your next lender

Business Income

Some borrowers plan to repay their bridging loan from business profits or income. This might work if you’re using the loan for a short-term business opportunity.

The lender will want to see:

Recent business accounts
Detailed of retained profits/reserves
Cash flow forecasts
Details of confirmed contracts or orders
Evidence of past business performance

Asset Sales

You might have other assets you’re planning to sell to repay the loan.

This could be other properties, investments, or even a business.

The lender will need:

Current valuations of the assets
Evidence they’re marketable
Any agreements already in place
Timeframes for the planned sales

The key with any exit strategy is to make it realistic and provable. It’s also smart to have a backup plan – lenders love this as it shows you’ve thought things through properly.

Planning Your Exit

Planning your exit from a bridging loan needs careful thought – it’s not something you want to leave to chance.

Let’s look at how to put together a solid plan that’ll keep both you and your lender happy.

Documentation That Proves Your Plan

Your exit strategy needs to be more than just an idea – you’ll need evidence to back it up.

For example, if you’re planning to sell, you might need:

An estate agent’s appraisal
Details of similar properties that have sold recently
Planning permission documents if you’re doing improvements first
A schedule of works if renovations are needed

If you’re planning to refinance, get your next lender lined up early. A mortgage agreement in principle is worth its weight in gold when you’re applying for a bridging loan.

Getting The Timing Right

Timing is everything with bridging loans.

You need to be realistic about how long things will take. If you’re renovating before selling, don’t just think about the building work – remember to factor in:

Time to get contractors lined up
Possible planning permission delays
How long it might take to find a buyer
The typical time for sales to complete in your area

Always add some extra time to your estimates. Things often take longer than expected in property – ask any developer!

If you think something will take three months, plan for four or five.

Have a Plan B (And Maybe a Plan C)

Smart borrowers always have a backup plan.

Think about what you’d do if your main exit strategy didn’t work out. This might mean:

Having another property you could sell if needed
Keeping some investments that could be liquidated
Having a pre-agreed refinance option with another lender
Making sure you’ve got access to other sources of funds

Your backup plan needs to be realistic too.

There’s no point saying you’ll sell another property if it’s already heavily mortgaged or would take too long to sell.

Remember, the more solid your exit planning, the better terms you’re likely to get on your bridging loan. Lenders love borrowers who’ve clearly thought things through and have contingencies in place.

Costs and Fees

Let’s talk money – specifically, what a bridging loan will cost you.

There’s more to consider than just the interest rate, so we’ll go through everything you need to budget for.

Understanding the Total Cost

Arrangement Fees

Arrangement fees cover the lender’s setup costs. They’re usually around 2% of the loan amount.

Some lenders add this to your loan, while others want it paid upfront. On a £200,000 loan, you could pay £4,000 in arrangement fees.

Legal Fees

You’ll need to pay both your solicitor and the lender’s solicitor.

Legal fees vary depending on the complexity of your case, but budget for at least £1,000 for each side. If you’re buying a property, you’ll also need to pay for searches and other disbursements.

Valuation Fees

The cost of your valuation depends on the property’s value and type. For a standard residential property worth £200,000, you might pay £500-£750. Commercial properties or development sites usually cost more to value.

Monthly Interest Options

Here’s where you’ve got some choices.

While all bridging loans will have the interest calculated each month, there’s a few different ways to set the loan up.

The available options are dependent on the lender; what they can offer and what they want to offer.

The options are:

Pay the interest monthly (like an interest only mortgage)
Roll up the interest and pay it all at the end
Retain the interest from the loan amount (pay it upfront)

Rolling up or retaining interest means you don’t have to make monthly payments, but you’ll pay more overall because you’re borrowing the interest too.

For larger loans it may also be possible to combine some of these options.

So a 24 month bridging loan could have retained interest for the first 12 months, then monthly payments (serviced interest) for the remaining 12 months.

How to Find the Right Lender

Working with a specialist bridging broker makes finding the right bridging loan much easier.

Here’s why:

Market Knowledge

Brokers know which lenders are actively lending and what they’re looking for. They’ll know who offers the best rates for your situation, who’ll consider unusual properties, who can move quickly when needed and who doesn’t need any credit checks.

Access to More Options

A lot of bridging lenders only work through brokers. You won’t find them on the high street or online. A broker can often get you better rates than going direct, even after their fee, because they bring lenders regular business.

Help with Applications

Brokers know exactly what each lender wants to see in an application. They’ll package everything properly first time, which speeds things up and increases your chances of approval. They’ll also get involved in all the back-and-forth with the lender, saving you time and hassle.

Negotiating Power

Because brokers bring lenders regular business, they often have room to negotiate on rates and terms. They might also know about special deals that aren’t publicly available.

Different Types of Lenders

High Street Banks

A few high street banks offer bridging loans, but they’re usually quite restrictive in what they’ll consider. They might have good rates, but they’re typically more conservative, slower and less flexible than specialist lenders.

Specialist Lenders

These lenders focus entirely on bridging and other short-term finance. They’re faster and more flexible than banks, and they’re set up to handle unusual cases. Most specialist lenders only work through brokers.

Private Lenders

Some wealthy individuals and family offices lend their own money. They can be very flexible and quick to decide, but their rates are often higher. They’re good for unusual cases that other lenders won’t consider.

Family Offices

These manage money for wealthy families and often include property lending in their investment mix. They typically work with larger loans (£1 million+) and can be quite flexible in their approach. Again, they usually only work through trusted brokers.

Next Steps

Ready to explore bridging finance?

Here’s what to do next.

Getting started with a bridging loan is straightforward. We’ve partnered with experienced independent brokers who specialise in bridging finance and short term loans.

The first step is a quick chat about your plans.

You can call us on 0330 030 5050 or fill out our simple contact form.

Our service is free and there’s no obligation. We’ll listen to what you need and connect you with a broker who’s experienced in your type of case.

Why Work With Our Brokers?

These aren’t just any brokers – they’re specialists who arrange bridging loans every day.

They know the market inside out and have strong relationships with a wide range of lenders.

Don’t worry if you’re not sure about all the details yet. Your broker can help you work through different scenarios and find the best way forward.

Get in touch today – we’re here to help you understand your options and find the right bridging loan for your needs. The sooner you start the process, the sooner you can achieve your property goals.

Call us on 0330 030 5050 or complete our contact form, and we’ll get back to you right away.

Remember, talking to us doesn’t commit you to anything – it’s just the first step in understanding your options.

Frequently Asked Questions

Standard applications typically complete in 5-10 days, while complex cases can take 3-4 weeks. A lot of the time is taken up with the legal processes.

Most lenders require a 20-25% cash deposit.

Bringing in additional security can reduce the deposit requirements and the interest rate. Non-status loans need a 30% deposit (70% LTV).

Common exits include property sale, refinancing to a traditional mortgage, development completion and sale, or business income. You’ll need evidence to support your chosen strategy.

Not normally. You can choose to roll up interest and pay everything at the end, retain interest from the loan amount, or make monthly payments.

Our loans go from £150,000 up to £25 million. The actual amount depends on property value, exit strategy, and overall security package.

Yes most lenders allow early repayment. Check if early repayment charges apply, though many bridging loans come without penalties.

Yes, if you have suitable security and a clear exit strategy. Lenders focus more on these factors than buyer experience.

Yes, many lenders accept additional security to improve terms or increase borrowing amount.

This depends on the type of valuation. Physical valuations typically take 7-10 days. Some lenders accept desktop valuations or AVMs for lower-risk cases, which are quicker.

Yes this is possible, with the right lender.

As loans don’t require any monthly repayments, your income and affordability are not relevant. What is relevant to the lender is the property, the LTV and how you will pay them back.

Non-status bridging loans are offered by a small number of lenders, these don’t require many checks but the rates charged are higher than normal.

How to Get a Bridging Loan