Mortgages · Bridging Loans
Fast, short-term finance when timing matters.
A bridging loan is short-term finance — typically 1-18 months — used to 'bridge' a gap, most often to complete a purchase before a sale completes, secure an auction property within tight deadlines or fund a project before longer-term finance is arranged.
What makes bridging finance different
Bridging loans are priced and structured very differently from standard mortgages — interest is usually charged monthly (often rolled up and paid at the end rather than monthly out of pocket) and rates are significantly higher, reflecting the short term and speed of the lending. It is not a substitute for a standard mortgage; it’s a specific tool for a specific, time-limited situation.
The single most important part of any bridging case is the exit strategy — how the loan will actually be repaid, whether that’s the sale of a property, refinancing onto a standard mortgage, or another confirmed source of funds. Lenders will scrutinise this closely — and so should you — before taking one out. See also Specialist Finance for development finance and other complex lending.
Some of the mortgages we conduct are not of a regulated nature, so the protection offered by regulation is not afforded to such contracts. These are mortgages such as Buy to Lets, some Bridging Loans, Commercial Loans and Development Finance.
Who this is for
- Buying at auction with a tight completion deadline
- Breaking a property chain
- Buying before your current property has sold
- Funding a refurbishment before refinancing onto a standard mortgage
- Time-sensitive commercial or investment purchases
- Needing certainty of funds to secure a deal
How it works
Tell us the situation
What you need to fund, the timescale and how you plan to repay (the 'exit').
Exit strategy first
Every bridging case starts with a clear, credible repayment plan — sale, remortgage or another source of funds.
Lender matching
Bridging is a specialist market — speed and flexibility vary significantly between lenders.
Fast completion
Bridging loans can often complete in days to a few weeks, much faster than a standard mortgage.
Common questions
- Bridging loan interest is typically charged monthly, at rates significantly higher than standard mortgage rates — commonly in the range of 0.5–1.5% per month, though this varies by lender, LTV and the risk profile of the case. Most bridging loans also carry arrangement fees of 1-2% of the loan. Interest is often rolled up and paid at the end alongside the principal rather than monthly, which affects the true total cost.
- Your exit strategy is how you will repay the bridging loan when it ends — most commonly through the sale of a property, refinancing onto a long-term mortgage or another confirmed source of funds. Lenders require a credible, evidence-backed exit before they will lend. If the exit strategy is unclear or too dependent on uncertain events, a lender may decline or require additional security.
- Bridging loans can complete significantly faster than standard mortgages — sometimes within five to ten working days where documentation is in order and the lender is experienced in fast completions. Auction purchases with 28-day completion deadlines are a common use case. The actual speed depends on the lender, the legal work required and how quickly documentation can be gathered.
- Most bridging loans are available for terms of up to 12 months, with some lenders extending to 18 or 24 months for more complex cases such as development projects. Unlike standard mortgages, bridging loans are not designed for long-term borrowing — the expectation is always that there is a clear and near-term exit.
How much does a bridging loan cost?
What is an exit strategy and why does it matter?
How quickly can a bridging loan complete?
What is the maximum term for a bridging loan?
Reviewed by Yazdaan Hussain · CeMAP qualified · LLB
21 August 2026