Bridging Loans

Bridging loans can be an effective solution when you need funds quickly and you have a clear repayment plan in place.

They are not designed for long-term use, but for short-term scenarios where speed, flexibility, and access to capital are more important than cost.

Whether a bridging loan is the right choice comes down to your individual goals. If you’re buying a property before your current home sells, purchasing at auction, or funding a renovation that traditional lenders won’t support, bridging finance can make those plans possible.

The same applies if you need to raise capital quickly for business reasons or want to refinance once a longer-term product becomes available.

Because bridging loans usually come with higher interest rates and upfront fees, they are best used when the exit plan is reliable and the figures make sense.

When used correctly, they allow you to act on opportunities or solve financial problems that can’t wait for slower lending routes.

Our role is to help you assess whether a bridging loan is a good idea for your circumstances. We’ll review your situation, look at the time frames involved, and help you understand how the loan would be repaid.

If it’s the right fit, we’ll guide you through the process and match you with a lender that can support you from start to finish.

The cost of a bridging loan varies depending on the size of the loan, the value of the security property, how long you need the funds for, and which lender you work with.

Interest rates are typically higher than traditional mortgages because bridging loans are short-term and involve faster access to funds.

Interest is often charged monthly, and some lenders allow this to be rolled into the loan, which means you don’t need to make monthly payments.

Instead, everything is settled at the end of the term. This can be helpful if you’re using the funds for a project that won’t generate income right away, or if you’re waiting for a property to sell.

In addition to interest, you may also have arrangement fees, legal costs, valuation fees, and broker fees, depending on how the loan is structured.

These fees can vary from one lender to another, which is why comparing the full cost rather than just the rate is important.

We will give you a full breakdown of all the costs before you proceed, so you know exactly what to expect.

Our advisors compare bridging loan options from a wide range of lenders to ensure you’re getting a competitive deal that suits your budget and timeline.

To get a bridging loan, the first step is to clarify how much you need to borrow, what the loan will be used for, what property or asset you’re securing it against, and how you intend to repay it.

Once that information is in place, we can find the right lender based on your needs and how quickly the funds are required.

Lenders will want to see a clear exit strategy. This could be the sale of a property, switching to a long-term mortgage, or using funds from another financial transaction.

They will also assess the value of the asset, how much equity is available, and whether the loan-to-value fits within their criteria.

Documentation is usually simpler than a standard mortgage. You’ll need proof of identity, property details, solicitor information, and depending on the case, some financial background on the project or transaction.

The more organised your documents are, the quicker the application can move forward. We’ll manage the process for you, liaising with the lender, valuer, and solicitor to keep everything running smoothly.

Because we work with lenders who specialise in bridging finance, we can often get faster decisions and more flexible terms than going direct.

Whether you’re a homeowner, investor, or business owner, we’ll make sure your application is structured properly and completed in the timeframe you need.

Bridging loans are one of the fastest types of property finance available, with some cases completing in as little as five working days.

On average, most bridging loans are completed within one to three weeks, depending on the complexity of the case and how quickly documentation and valuations can be arranged.

Speed is one of the main reasons people choose bridging finance. Whether you’re buying a property with a tight deadline, funding a time-sensitive renovation, or resolving an urgent business need, bridging lenders are set up to move faster than traditional mortgage providers.

Several factors influence how quickly the loan can complete. These include how quickly a valuation can be arranged, how fast your solicitor works, and how ready your documents are.

The clearer your exit strategy and the stronger your application, the quicker a lender is likely to make a decision. We’ll make sure everything is lined up before the application is submitted.

This includes gathering all the required paperwork, coordinating with your solicitor, and ensuring the valuation is booked early. With the right preparation, we can significantly reduce delays and help you secure funding within your required timeframe.

Bridging loans are designed to be used over a short period, with most lenders offering terms from three to twelve months.

Some may allow up to 18 or 24 months, depending on the purpose of the loan and the exit strategy in place. These terms are agreed at the outset and are tailored to your plans.

The loan is usually secured against a property or land and is typically interest-only. You can choose to pay the interest monthly or roll it into the final loan balance, so nothing is paid until the end.

This flexibility makes bridging loans attractive for borrowers who need time to sell a property or arrange long-term finance before repaying the loan.

Loan amounts can vary, from tens of thousands to several million, depending on the value of the asset and the amount of equity available.

Lenders usually work to a maximum loan-to-value ratio, and this will depend on the property type, condition, and location.

We’ll explain the full terms upfront, including how the interest will be handled, when repayment is due, and what happens if you need to extend the term.

Our advisors will ensure you understand the full commitment before proceeding and help structure the loan so it works for your timeframe and financial plans.

Yes, bridging loans are available in Scotland, but there are some important differences compared to borrowing in England or Wales.

Property law in Scotland operates under a different legal system, and this affects how lenders approach bridging finance. Not all lenders offer products north of the border, and those that do often have slightly different processes, timelines, or legal requirements.

If you’re buying or refinancing property in Scotland, the loan will need to follow Scottish conveyancing and legal protocols. This includes how security over the property is granted, how the title is registered, and which professionals need to be involved.

Lenders who offer bridging loans in Scotland are familiar with these differences and build them into the structure of the deal.

Bridging loans can be used in Scotland for the same types of scenarios as elsewhere in the UK. You might be:

• Buying a residential or investment property before your current one sells
• Completing an auction purchase with a fixed deadline
• Funding a renovation or refurbishment project
• Releasing capital from a property you already own for business or personal use

We work with lenders who offer bridging finance specifically for Scottish properties. Whether you are dealing with a residential, commercial, or mixed-use property, we’ll help you find a lender that understands the legal process and can complete the loan within your timeframe.

Bridging loan interest rates are quoted monthly rather than annually, which sets them apart from standard mortgage products. These loans are designed for short-term use, and the rates reflect the speed and flexibility they offer. They are also typically much higher than standard mortgage rates.

Your final rate will depend on the property type, loan size, loan-to-value ratio, and how confident the lender is in your exit strategy. For straightforward residential deals with a clear repayment plan, rates tend to be more competitive.

If the loan involves a commercial property, higher loan-to-value, or time-sensitive funding, the rate may increase.

You’ll also need to factor in additional costs such as arrangement fees, valuation costs, legal fees, and any broker charges. Some of these can be added to the loan, but we’ll always outline everything clearly at the start so there are no surprises later on.

Interest can often be rolled up, meaning you don’t need to make monthly repayments. This is particularly useful if your exit strategy involves a property sale or refinance later down the line.

A bridging loan is used when you need to access funding quickly and have a short-term need that doesn’t suit traditional lending routes.

These loans are known for their flexibility and are often secured against property or land, either residential or commercial.

While most people associate them with property purchases, they can be used in other ways too. Common examples include:

• Buying a new property before your current one is sold
• Purchasing a property at auction where funds are needed within a few weeks
• Renovating a property that isn’t mortgageable in its current state
• Releasing equity from a property for business use or personal reasons
• Settling time-sensitive financial commitments such as tax liabilities or inheritance bills

The key element with any bridging loan is having a clear exit route.

Whether it’s a property sale, long-term refinance, or the release of other funds, the loan is always intended to be repaid within a fixed timeframe.

We’ll help assess whether bridging finance is the right tool for your situation and ensure it’s structured with your end goal firmly in mind.

Bridging loans come in different forms, each designed to suit a specific situation. The type you need will depend on what the funds are for, how you’ll repay the loan, and what type of property is involved.

A closed bridging loan is used when you already have a set date to repay the loan, usually because a sale is agreed or refinance is already arranged. If the timeline is less certain, an open bridging loan gives you more flexibility, though lenders may want a stronger explanation of your exit route.

There are bridging loans for residential and commercial purposes. A residential bridging loan is typically used for homes or buy-to-let properties, while commercial bridging loans are suited to shops, offices, or mixed-use buildings.

If you’re developing or converting a property, some lenders offer refurbishment bridging loans or development bridging loans with staged drawdowns to fund each phase of the work.

You’ll also find first charge and second charge options. A first charge loan is the main loan secured against a property, while a second charge sits behind an existing mortgage and is used when refinancing isn’t practical.

Some bridging loans are regulated by the Financial Conduct Authority. These are known as regulated bridging loans and usually apply when the property is your main home. All other loans that fall outside of this scope are classed as unregulated.

We’ll take the time to explain which type of loan fits your plans and connect you with lenders that specialise in the right area.

While bridging loans are a powerful solution when speed is key, they’re not always the most suitable route. If you have more time or your borrowing need isn’t urgent, there are other finance options that could work better depending on your circumstances.

If you’re looking to raise funds against your home and already have a mortgage in place, a second charge mortgage might be worth exploring. It lets you borrow more without remortgaging your entire loan, which can be useful if your existing deal comes with early repayment charges.

For those not in a hurry, a remortgage or further advance with your current lender could offer a more affordable way to raise money. This works well if your property is in good condition and the lending criteria align with your financial position.

In property development cases, development finance might be the better fit. It’s designed for ground-up builds and larger renovations where funds are released in stages.

If you’re buying to rent, and the property is already mortgageable, a buy-to-let mortgage might be the simplest option, especially if you don’t need to complete quickly.

Our advisors will explore these alternatives with you. If we believe a bridging loan isn’t the right fit, we’ll be honest and show you the other routes that may be more suitable both in terms of cost and practicality.