It's Free to Speak to an Advisor, 7 days, 8am - 10pm

Bridging Loan to Buy a House

Book Your Free Consultation
8am - 10pm, 7 Days a Week

0800 029 3757Speak to an Bridging Specialist - It's Free!
Reviews IO Logo

Read our 2000+ Reviews

Reviews Logo

How can a bridging loan be used to buy a house?

A bridging loan is a financial solution that helps you buy a new house before selling your current one. It provides quick access to funds, allowing you to open up to opportunities in the housing market without waiting for your old property to sell. Bridging loans can be used to purchase a new home, release equity in your current property, fund renovation projects, and downsize.

While they offer flexibility, it’s important to be aware of their higher interest rates and fees. Speak with a bridging specialist today to run through your options and answer all your questions.

Speak to an Bridging Specialist - It's Free!
Video BG One Video BG Two
Service Icon

How to Find the Right Bridging Loan to Buy a House

Before you start your search for a bridging loan to buy a house, it’s essential to have a clear understanding of several factors:

  • How much you need to borrow: Calculate the total amount required to purchase the property, including fees and taxes, and subtract any cash you already have available for the purchase.
  • Decide loan duration: Consider how long you’ll need the bridging loan for. Shorter loan durations typically incur less interest but may have higher monthly repayments, while longer durations spread the cost over a longer period but may result in paying more interest overall.
  • Existing mortgages: If you already have a mortgage on the property you’re purchasing, or if you plan to take out a mortgage alongside the bridging loan, it will impact your borrowing options. First charge loans are typically used when there is no existing mortgage, while second charge loans are common when there is already a mortgage in place.
  • The value of the property: The property’s value determines the loan-to-value (LTV) ratio, which is the percentage of the property’s value that you can borrow through the bridging loan.
  • Repayment plan: Have a clear outline for repaying the bridging loan. Having a well-defined repayment plan is crucial for managing the financial risk associated with bridging loans and ensuring timely repayment.

By considering these factors in detail, you’ll be better equipped to find the right bridging loan to buy a property, tailored to your specific financial situation and requirements.

Speak to an Bridging Specialist - It's Free!

Our Customers Love Us

Reviews Stars2000+ 5-Star Reviews

Bridging Loans FAQs

What is a bridging loan?

Accorion Arrow

A Bridging loan is an quick way to borrow money in the short term. They can be used to ‘bridge the gap’ if you need to buy one property before selling another. Compared to a typical mortgage, bridging loans can be arranged quickly if speed is important.

However, bridging loans are a secured loan, meaning that you have to secure an asset against them (usually a property or properties). As there is a risk of losing your asset.

What are bridging loans used for?

Accorion Arrow

Ranging from simple to complex scenarios, some examples of bridging finance solutions.

  • Property Purchases: They enable buyers to fund the acquisition of a new property before selling an existing one, facilitating smoother transitions between homes.
  • Property Development: Bridging finance can be used to finance renovations, refurbishments, or property development projects, providing short-term capital for construction or improvement work.
  • Auction Purchases: They are commonly used to secure properties bought at auctions, where immediate payment is required to secure the purchase.
  • Chain-Breaking: Bridging loans can prevent property chains from collapsing by providing funds to complete a purchase when delays occur elsewhere in the chain.
  • Short-Term Cash Flow Needs: They can address temporary financial gaps or emergencies, providing liquidity until more permanent financing arrangements are in place.

How much can you borrow with bridging loans?

Accorion Arrow

When considering how much you can borrow with a bridging loan, it’s essential to understand that the maximum loan amount is typically determined by the loan-to-value (LTV) ratio. In most cases, lenders cap the maximum loan, including any retained or rolled-up interest, at around 75% of the property’s value.

This means that you can borrow up to 75% of the value of the property being used as security for the loan. It’s worth noting that this limit applies to the total value of the property or properties offered as security, even if you’re using multiple properties to secure the loan.

Therefore, your borrowing capacity with a bridging loan will depend on factors such as the value of the property, your financial situation, and the lender’s specific criteria and risk assessment processes.

Do you need a deposit for a bridging loan?

Accorion Arrow

Generally, you’ll need a deposit for a bridging loan. The deposit requirement varies but typically ranges from 20% to 40% of the property’s value. Having a deposit reduces the lender’s risk and may improve your loan terms.

8 Reasons to choose UK Moneyman

Availability 7 Days a Week!

We're flexible around your work and family, we'll be there when you need us.

30-45 minute Free mortgage review.

No upfront fees payable, we are paid on results only.

Converse with your own dedicated case manager.

You'll always know who you are dealing with.

We're here for you, every step of the way!

Getting your first mortgage can be a daunting experience. We’ll hold your hand all throughout the process.

Your mortgage isn't the only priority, insurance is important too.

We'll recommend appropriate insurance products to ensure you can stay in your home, should you become seriously ill or unable to work.

Explore various mortgage products.

We shop around for the cheapest deal for you, saving you time and money.

We're experienced and knowledgeable.

There isn't a situation we haven't come across before, we fully understand your needs.

Your bridging specialist will be with your every step of the way.

We'll help you overcome hurdles that you face along the way, for example, removing the stress of property survey and valuation problems.

UK Moneyman Limited is Registered in England, No. 6789312
Registered Address: 10 Consort Court, Hull, HU9 1PU.

Authorised and Regulated by the Financial Conduct Authority.

We are entered on the Financial Services Register No. 627742 at

Equity Release Council LogoSolla Later Life Logo
Facebook Image X Logo Instagram Image YouTube Image LinkedIn Image SpotifyImage TikTok Image

Speak to an Advisor – It’s Free!
7 Days a Week, 8am – 10pm

Speak to an Advisor - It's free Enquire Online 0800 029 3757
We use cookies to enhance your customer experience. More detailsGot It