In this article
Yes, you can use a bridging loan to help pay inheritance tax, especially when the estate includes a property that hasn’t yet been sold.
Many people face a situation where they inherit a valuable asset like a home but don’t have enough cash on hand to cover immediate costs.
Because you can’t use property to pay a bill unless you sell it or borrow against it, this creates a problem when the tax needs paying quickly.
A bridging loan gives you fast access to funds, so you can manage the estate properly without rushing into a sale or relying on your own savings.
What Is Inheritance Tax and Why Do You Pay It?
Inheritance tax is a charge that applies when someone passes away and leaves behind an estate.
The estate can include savings, personal items, investments and property.
The government looks at the total value, and if it goes over a certain threshold, the estate will be taxed on the amount above that point.
In most cases, a residential property makes up the largest part of what’s inherited. Families often find themselves facing a tax bill but with little or no cash to cover it.
Since you usually need to settle this before getting probate, the legal authority to handle the estate, it can delay everything.
Without the funds, you might end up stuck, unable to move forward until the tax is paid.
Speak to an Advisor – It’s Free!
Schedule a free callback from one of our experts today.
- All situations considered
- Transparent and honest mortgage advice
- We search 1000s of purchase and remortgage deals
Our customers rate us 4.9/5
Why Use a Bridging Loan to Pay Your Inheritance Tax?
Bridging loans offer a quick way to raise money, which is why they’re often used when timing matters.
In inheritance cases, they let you cover the tax without needing to sell the property straight away.
You’ll typically repay the loan once probate goes through and you settle the estate, either by selling the property or moving it onto a traditional mortgage.
This type of borrowing helps you avoid rushed decisions.
It gives you time to think through what you want to do with the property, whether that’s keeping it in the family or selling it when the timing suits you better.
When you’re under pressure to pay the tax and there’s no cash available, a bridging loan can ease that burden.
It also keeps things moving at a time when delays can feel overwhelming. You can deal with what’s required without pausing everything or adding extra stress.
For many families, it provides a practical solution when the estate is mainly tied up in property.
What Can You Use to Secure a Bridging Loan?
To get a bridging loan, you’ll need to offer something as security.
Most people use the property from the estate, but you can also use a home you already own.
Lenders want to see that the property has enough equity to cover the amount you’re borrowing, so they’ll look closely at its value.
If you already have a mortgage on the property, they’ll also want to understand how that affects the loan.
As long as there’s enough value left, you can use it as a way to access the funds.
This lets you release money from the property without needing to sell it under pressure.
Using property as security gives you a flexible way to deal with the costs involved in inheritance.
Instead of selling the home quickly or finding cash from elsewhere, you can unlock the value in it to move things forward.
The Importance of Bridging Loan Advice
If you’re thinking about using a bridging loan to help cover inheritance tax, it’s worth speaking to a mortgage advisor first.
They’ll help you understand what’s involved and talk you through what your options might look like.
It’s important to make sure you’re fully prepared and that you’ve thought through your exit strategy before applying.
If you’ve got broader questions about inheritance tax, you may also want to speak to a qualified tax advisor who can guide you through the legal and financial side of things.
Whether you’re looking to borrow against a property you’ve inherited or need help understanding how the process works, our team of mortgage advisors are here to talk things through.
