Need fast funding? A bridge loan can give you quick access to capital for property purchases, refinancing, or time-sensitive opportunities.
Complete our short form to get matched with bridging loan lenders and compare tailored options today.
Bridge finance is a type of short-term loan used to “bridge” a financial gap, often between buying and selling property or securing longer-term finance such as a mortgage.
A bridging loan is a short-term solution typically used when traditional mortgage or term finance options are not suitable due to time constraints. Bridging loans are secured against your property, meaning the loan is secured and lenders use the asset as security.
A bridge loan works by providing quick borrowing against the equity in a property. The loan amount is usually based on the loan to value, meaning the percentage of the property used as security.
You can borrow with a bridging loan for a range of purposes, including:
Purchasing a new home before selling an existing one
Funding property refurbishment
Supporting development finance projects
Business finance or short-term finance needs
Bridging loans are often used where speed is essential, and traditional lenders cannot lend quickly enough.
If you need to get a bridge loan quickly, the process is often faster than a standard mortgage. Many lenders offer bridging loan solutions designed for speed, with some applications approved for a bridging loan within days.
Fast bridging can be ideal when you need to secure a property or complete a transaction quickly. However, lenders will still assess your exit strategy to ensure you can repay the bridging loan at the end of the loan term.
Use this free bridging loan calculator to get a detailed estimate of interest, charges and other costs of your bridging finance.
Using a calculator can provide clarity and help you assess what level of borrowing is manageable for your business.
Simply enter the amount you wish to borrow, loan term (in years), and interest rate. Please bear in mind this is a guide and what you may end up repaying.
Bridging Finance UK
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How much can I borrow will depend on several factors, including:
The property value
Your available equity
The loan to value ratio
Your repayment strategy
In many cases, you may be able to borrow up to 75% of the property value, although this varies depending on the lender and the type of loan.
There are different types of bridging loans available depending on your situation:
An open bridging loan does not have a fixed repayment date, although it still typically runs for up to 24 months.
A closed bridging loan has a defined exit date, such as the confirmed sale of a property.
First charge loans take priority over other borrowing, while a second charge loan sits behind an existing mortgage.
Commercial bridging is often used by businesses needing fast access to capital. This type of finance option can support business finance requirements such as purchasing premises, refurbishments, or covering short-term cash flow gaps.
A bridging loan could also be used as part of a wider strategy before securing longer-term development finance or a commercial mortgage.
Bridging loans are usually more expensive than standard mortgages due to their short-term nature and flexibility.
Key costs to consider include:
Interest rate and monthly interest
Rates and fees, including arrangement charges
Higher interest rates compared to traditional lending
Annual percentage rates
Interest may be charged monthly or rolled up and paid at the end of the loan, depending on the loan terms.
Repayment is a key part of any bridging loan. You will need a clear plan to repay the loan, whether through:
Sale of a property
Refinancing onto a mortgage
Business income or investment
You can repay the bridging loan in full at the end of the loan term, or in some cases repay all or part early, depending on the agreement.
To be approved for a bridging loan, lenders will assess:
The property used as security
Your exit strategy
The loan amount requested
Your financial position
While some lenders offer a loan with bad credit options, approval will depend on the strength of the security and repayment plan.
Regulated bridging loans are overseen and regulated by the Financial Conduct Authority and are typically used for residential purposes.
An unregulated bridging loan is used for commercial or investment purposes, such as buying a business or commercial property.
Understanding whether your loan is regulated or unregulated is important when choosing the right type of finance.
It’s important to compare bridging loans to find the best bridging loan for your needs. Each loan provider will offer different rates, terms, and criteria.
A bridging loan comparison allows you to assess:
Interest rates and loan terms
Fees and overall cost
Flexibility and repayment options
Working with a broker or introduction service can help you access lenders offering bridging solutions tailored to your needs.
While bridging finance is a useful tool, there are alternatives to bridging loans depending on your situation, including:
Development finance
Commercial mortgages
Term finance solutions
Choosing the right type of finance will depend on your timeline and long-term objectives.
If you’re ready to apply for a bridging loan, we make the process simple.
At Commercial Mortgage Guide, we connect you with bridging loan lenders across the UK. Whether you’re looking to take out a bridging loan, secure fast funding, or explore flexible finance options, we help you access the right lenders.
If you need short-term finance or want to explore whether bridging is right for you, we’re here to help.
We make it easy to compare bridging loans, understand your options, and connect with lenders offering solutions tailored to your needs.
Bridging loans are designed for speed, and in some cases, funds can be available within a few days. The exact timeframe depends on the lender, property valuation, and how quickly the required information is provided.
Applying for a small business loan typically involves providing details about your business, including turnover, trading history, and financial position. Once submitted, lenders assess your application and offer suitable loan options based on your requirements.
Yes, bridging finance is commonly used for property refurbishment projects, including renovations that may not qualify for a standard mortgage. It allows borrowers to complete works before refinancing or selling.
The loan amount available will depend on factors such as your business turnover, trading history, and financial position. Lenders will assess what is affordable based on your ability to repay the loan.
Yes, bridging loans are often used for auction purchases where completion deadlines are tight. The fast access to funds makes them ideal for securing property quickly after a successful bid.
We can also help find commercial finance options with other services
Finance for purchasing or refinancing commercial property.
Funding for property development, from new builds to refurbishments
Funding for property development, from new builds to refurbishments
