Bridging Loans

A bridging loan is a short-term finance solution designed to "bridge the gap" between buying a property and securing longer-term funding or selling an existing asset.

For example, you might need to:

With a bridging loan, a lender provides funds secured against property (residential, commercial, or mixed-use). You receive the funds quickly — often in days rather than weeks — and repay the loan when your exit strategy completes (such as selling the property or refinancing onto a mortgage).

Unlike traditional mortgages, bridging loans focus more on the asset and exit plan rather than just income multiples.

In most cases, you'll choose between two types of bridging loan:

Closed Bridging Loan – Used when you have a clear, fixed repayment date (for example, contracts exchanged on a property sale). This often offers lower rates due to reduced lender risk.

Open Bridging Loan – Used when your repayment date is not fixed (for example, waiting for a property to sell). This offers more flexibility but may come with slightly higher rates.

Bridging loans are typically structured to suit your cash flow and exit strategy.

Rolled-Up Interest – Interest is added to the loan and repaid at the end, meaning no monthly payments. Ideal if the property is not yet generating income.

Retained Interest – The lender calculates interest for the agreed term and deducts it upfront. You repay everything at completion.

Serviced Interest – You make monthly interest payments, reducing the total cost of borrowing.

Your broker will structure the loan around your exit plan — whether that's a refinance, sale, or long-term funding arrangement.

Bridging loans are commonly used for:

Because speed is critical in many of these scenarios, bridging lenders can often complete far quicker than high street banks.

Costs depend on the loan size, property type, risk profile, and exit strategy.

Typical costs to consider include:

Interest is usually charged monthly rather than annually, so it's important to understand the total cost over the full term.

We compare rates from a wide panel of UK bridging lenders to ensure you receive competitive terms tailored to your situation.

Bridging finance can be extremely effective — but it's not suitable for every situation.

Speed – If timing is critical, bridging can complete in days rather than months.

Flexibility – Less emphasis on income multiples and more focus on the asset and exit plan.

Short-Term Solution – Designed for 3–18 months, not long-term borrowing.

Leverage Opportunity – Allows investors and developers to secure opportunities quickly.

However, because rates are higher than traditional mortgages, it's essential to have a clear, realistic exit strategy.

Rates, fees, flexibility, and criteria vary significantly between lenders. Some specialise in:

Using our free service, you can quickly review options from specialist bridging lenders without impacting your credit score.

We work with experienced, ethical lenders who understand time-sensitive property transactions and provide clear, transparent terms.