Bridging Finance

Short-term secured lending that moves at property speed - broken chains, auction deadlines, refurbishments and purchases that cannot wait for a mortgage.

Chain breaks, auctions and refurbishment funding
Terms typically 1-24 months, exit-led lending
CeMAP qualified advisers with 20+ years' experience

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Bridging Loans Explained

A bridging loan is short-term finance secured against property, designed to bridge a gap - between buying one property and selling another, between an auction win and its completion deadline, or between buying a property that needs work and refinancing it once the work is done.

Bridging is judged less on monthly affordability and more on two things: the security offered and the exit - the clear, credible way the loan gets repaid within its term, usually a sale or a remortgage.

Arranged properly it is a precise tool; arranged badly it is expensive. We compare bridging lenders from across the market, structure the exit before anything is signed, and tell you plainly when bridging is the wrong answer.

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When bridging finance is used

Chain break - your purchase is ready but your sale has fallen through or lags behind
Auction purchase - completion is typically required within 28 days, faster than mortgages usually move
Refurbishment - the property needs work before a mainstream lender will mortgage it
Un-mortgageable property - no kitchen or bathroom, structural issues, short lease being extended
Downsizing - buy the next home first, sell the current one without pressure
Business cash flow secured on property - for a narrower set of unregulated cases

The common thread is a deadline or a property condition that ordinary mortgage timescales cannot meet - with a clear route to repaying the loan shortly afterwards.

How a bridging loan works

Enquiry and decision in principle: Bridging lenders can issue terms within days - the case is shaped around security and exit from the start
Valuation and legal work: The security property is valued and solicitors act for you and the lender in parallel to keep pace
Drawdown: Funds released - complete cases can run from enquiry to drawdown in a few weeks, faster where deadlines demand
The term: Typically 1-24 months; interest is usually retained or rolled up rather than paid monthly
Exit: The sale completes or the remortgage draws down, repaying the bridge in full

Interest works differently from a mortgage: it is quoted monthly and commonly retained from the advance or rolled up and paid at the end, so there may be no monthly payment at all. Loans can sit as a first charge, or as a second charge behind an existing mortgage.

Your exit strategy

The exit is the repayment plan the whole loan is built around, and it is the first thing any bridging lender examines. The two standard exits:

Sale - of the property being bridged or another property; realistic pricing and marketing time matter
Remortgage - onto a residential, buy to let or specialist mortgage once the property or your position qualifies

A refurbishment case typically exits by remortgage at the improved value; a chain-break case exits when the delayed sale completes. Where the exit is a remortgage, we arrange it alongside the bridge - our remortgage and buy to let remortgage teams take the case straight on, with free valuation and legal fees on the remortgage itself.

If the exit slips past the term, extensions and re-bridging exist but cost real money - which is why we stress-test the exit before recommending any bridge.

Regulated and unregulated bridging

Not all bridging finance is regulated by the Financial Conduct Authority. The dividing line is what secures the loan:

Regulated bridging - secured on a home you or close family live in or will live in; FCA consumer protections apply
Unregulated bridging - secured on investment property or for business purposes; standard consumer protections do not apply

The distinction changes the lenders available, the paperwork and the protections around the loan. We tell you which side your case falls on at the outset, and everything we arrange is advised either way.

What bridging costs

Bridging is priced for speed and short terms, so it costs more than mortgage lending. The usual components:

Interest - quoted monthly, reflecting the loan-to-value, the security and the strength of the exit
Lender arrangement fee - commonly a percentage of the loan
Valuation and legal fees - for both your solicitor and the lender's
Exit or admin fees with some lenders - we flag them in the comparison
Our broker fee - typically £1,250, or up to £1,495 for specialist lending, confirmed in writing before you commit

We compare bridging offers on the total cost of the loan over its realistic life - not the headline monthly rate - and full details of how we charge are in our regulatory statement.

Why use LifePro?

Whole-of-market access across bridging and specialist lenders, covering all of the UK
Exit-first advice - the repayment route is structured before the loan is recommended
Bridge and exit remortgage arranged together under one roof
CeMAP qualified advisers with 20+ years' experience
Plain answers - including when bridging is the wrong tool

Frequently Asked Questions

How quickly can a bridging loan complete?

Terms can be issued within days and straightforward cases can draw down in a few weeks - materially faster than mortgage timescales. Auction purchases with 28-day deadlines are routine bridging territory, provided the legal work starts immediately.

Do I make monthly payments on a bridging loan?

Often not. Interest is commonly retained from the advance or rolled up and repaid with the loan at exit, so nothing is paid monthly. Serviced bridging - paying interest monthly - exists too and reduces the total borrowed.

What can be used as security for bridging?

Residential and investment property, and for some lenders commercial property or land. The loan can sit as a first charge, or a second charge behind an existing mortgage with that lender's consent. Loan-to-value limits are lower than mortgage lending.

Is bridging finance regulated by the FCA?

Not all of it. Bridging secured on a home you or close family occupy is FCA-regulated with consumer protections; bridging on investment property or for business purposes is generally unregulated. We confirm which applies to your case at the outset.

What happens if my exit is delayed?

Contact the lender early - extensions or re-bridging are usually possible but add cost, and default rates are punitive. This is why we stress-test the exit before recommending a bridge: realistic sale pricing, or a remortgage agreed in principle in advance.

Is a bridging loan the same as a mortgage?

No. A mortgage is long-term, repaid monthly from income; bridging is short-term, priced monthly, and repaid in one move from a sale or refinance. Where a case can wait for a mortgage, the mortgage is almost always cheaper - and we will say so.

Bridge the Gap Without the Guesswork

Speak to a CeMAP qualified adviser about bridging finance - speed, structure and a solid exit

Arrange a Callback Call 0800 246 5191

Whole-of-market advice • Broker fee typically £1,250 (up to £1,495 for specialist lending), confirmed before you commit • Not all bridging finance is regulated by the FCA

Your property may be repossessed if you do not keep up repayments on your mortgage.

You may have to pay an early repayment charge to your existing lender if you remortgage. Not all Buy to Let Mortgages are regulated by The Financial Conduct Authority.