Bridging loans at a glance
What is a bridging loan?
A bridging loan is a short term loan secured against property or land.
It is designed to bridge a temporary financial gap. This can arise when you need to complete a purchase before another property has sold, buy within an auction deadline or renovate a property before a standard mortgage becomes available.
Unlike a standard mortgage, bridging finance begins with the repayment strategy.
Before arranging the loan, you need a clear plan showing how the capital, interest and fees will be repaid. This is often called your exit strategy.
Your repayment strategy can include:
- Selling the property being financed
- Selling another property
- Replacing the bridge with a residential mortgage
- Replacing the bridge with a buy to let mortgage
- Replacing the bridge with a commercial mortgage
- Using funds from another clearly identified source
Our team of mortgage advisers will assess the repayment strategy before approaching a lender.
Your home or any other property used as security is at risk if you do not keep up repayments on a mortgage or other loan secured against it.
The Financial Conduct Authority does not regulate some forms of bridging finance.
Buy to Let mortgages and Commercial Lending are not usually regulated by the Financial Conduct Authority.
When can a bridging loan help?
Buying before selling your home
A bridging loan can help you complete the purchase of a new property before your existing home has sold.
You will temporarily be responsible for borrowing secured against more than one property. We will assess the available equity, expected sale and total cost before recommending this route.
Buying property at auction
Auction purchases normally have a fixed completion deadline.
Bridging finance can provide funds where a standard mortgage cannot complete within the required timescale. You should investigate the finance before bidding because a successful bid creates a legal commitment to complete.
Buying a property that needs work
A standard mortgage lender can reject a property that is not ready to live in or rent out.
Bridging finance can fund the purchase and, where agreed, renovation work. The loan is then repaid through a sale or longer term mortgage once the work is complete.
We will review the proposed work, costs, timescale and repayment route.
Completing a purchase quickly
A seller can require completion more quickly than a standard mortgage process allows.
Bridging finance can support a faster transaction where the property, valuation, legal work and repayment strategy meet the lender’s requirements.
Commercial and investment property
Bridging finance can also support the purchase or refinance of commercial property, investment property and land.
The lender will assess the property, transaction, experience and repayment strategy. These arrangements are not always regulated by the Financial Conduct Authority.
Bridging loan or standard mortgage?
A bridging loan is not simply a faster version of a standard mortgage. It is short term finance designed for a specific gap.
Why use a bridging loan broker?
Bridging lenders do not all assess applications in the same way.
Each lender has its own approach to:
- Property type and condition
- Residential and commercial transactions
- Auction purchases
- Renovation projects
- Loan amounts and available equity
- Repayment strategies
- Interest arrangements
- Legal and valuation requirements
- Previous property experience
Approaching one lender limits you to that lender’s products, costs and criteria.
We will review the complete transaction before identifying suitable lenders. This includes the immediate purchase and the eventual repayment of the bridging loan.
Using a mortgage broker can help you:
- Establish whether bridging finance is the correct route
- Avoid lenders whose criteria do not fit the transaction
- Understand the full cost before committing
- Prepare the property and repayment information
- Compare suitable lending options
- Coordinate the lender, valuation and legal requirements
- Keep the application moving towards your completion date
At Your Mortgage Expert, we will help to arrange borrowing with a realistic route into and out of the loan.
How much can you borrow?
The amount available depends on:
- The property value
- The expected value after any work
- Existing mortgages and secured borrowing
- The property type and condition
- The purpose of the loan
- The repayment strategy
- The interest and fees included within the facility
The amount you receive can be lower than the total loan because interest and fees can be deducted or added to the borrowing.
Our team of advisers will explain the total facility, the amount released to you and the amount required to repay the loan.
How much does a bridging loan cost?
Bridging finance can include:
- Interest
- A lender arrangement fee
- A property valuation fee
- Legal costs
- A broker fee
- Administration fees
- Fees connected with repaying or extending the loan
- Additional property reports
The interest rate alone does not show the total cost.
We will explain:
- How interest is charged
- Whether interest is paid monthly or added to the loan
- The cost over the expected borrowing period
- The amount required to repay the loan
- The effect of delays
- The fees payable at application, completion and repayment
A delay can increase the interest and total amount owed. You should not commit to bridging finance without understanding the cost if your repayment strategy takes longer than planned.
Our fee
We will confirm all fees and costs before you decide whether to proceed.
Benefits and important considerations
How bridging loan advice works
- Tell us about the transaction
We will discuss the property, amount required, completion deadline and what the finance needs to achieve.
- We assess the repayment strategy
We will establish how and when the bridging loan will be repaid.
- We compare the alternatives
We will consider whether a mortgage, secured loan or another route meets your needs more effectively.
- We identify suitable lenders
We will compare lenders whose criteria fit the property, timescale and repayment plan.
- We explain the costs and risks
You will receive a clear explanation of the interest, fees, term and consequences of delays.
- We manage the application
We will help gather the required documents and work with the lender, valuer and solicitors as the application progresses.
Why choose Your Mortgage Expert?
Bridging finance requires careful planning at both ends of the transaction.
When you use Your Mortgage Expert, you receive:
- A full assessment before an application is submitted
- Consideration of mortgage and other borrowing options
- Access to lenders whose criteria fit your transaction
- Clear explanations of the costs and risks
- Help preparing the property and repayment information
- Support with lender, valuation and legal requirements
- Regular updates throughout the application
- One point of contact from enquiry through to completion
We will not recommend a bridging loan simply because it can be arranged quickly. The finance must have a clear purpose, suitable terms and a credible repayment strategy.
Discuss your bridging finance options
Speak to us before committing to short term property finance or a time sensitive purchase.
We will assess the transaction, establish the repayment strategy and compare the available finance routes.
Speak to a bridging loan adviser
Page last reviewed: July 2026