Business
Bridging finance
A bridging loan is short-term finance secured on property, usually for 1 to 24 months, used when you need to move faster than a normal mortgage allows. The key to a good bridge is a clear, realistic way to repay it.
When bridging is used
- Buying at auction, where completion is usually due within 28 days
- Breaking a chain, or buying before you have sold
- Buying a property a mortgage lender will not accept until it is refurbished
- Light or heavy refurbishment before refinancing or sale
- Releasing capital quickly for a business opportunity
How bridging loans are priced
Interest is quoted as a monthly rate rather than an annual one. It can be paid each month, rolled up and repaid at the end, or retained from the loan at the start. Lenders typically lend up to around 70 to 75 percent of the property value. Expect an arrangement fee, a valuation and legal costs, and sometimes an exit fee – so always compare the total cost, not just the rate.
Your exit strategy
Every lender will ask how you will repay the loan: by selling the property, by refinancing onto a longer-term mortgage or commercial mortgage, or from another source. We help you plan the exit before you start, so the bridge does not run over term.
Important information
Bridging loans that are not secured on your own home are not regulated by the Financial Conduct Authority. Bridging secured on a home you or your family live in is regulated. Your home or property may be repossessed if you do not keep up repayments on a loan secured on it.
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Development finance
Funding for ground-up builds, conversions and refurbishments, with a development finance calculator.
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Bridging loan calculator
Estimate the gross loan, interest, fees and total cost of a bridging loan.
Find out more
Free tools
Try our free tools
Bridging loan calculator
Estimate the gross loan, interest, fees and total cost of a bridging loan.
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Commercial property valuation
An indicative value for offices, shops and industrial units, with the finance options.
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Q&A
Questions & answers
How quickly can a bridging loan complete?
Often within two to four weeks, and sometimes faster where the valuation and legal work are straightforward.
Is bridging finance regulated?
Bridging secured on a home you or your family live in is regulated by the Financial Conduct Authority. Bridging on investment, commercial or development property usually is not.
What is an exit strategy?
Your plan to repay the loan at the end of the term, usually by selling the property or refinancing onto a longer-term mortgage.
Your first meeting is free
Talk to an independent financial adviser in St Albans. Call 01727 223251 or send us a message.