Frequently Asked
Questions

A bridging loan is short-term, property-secured finance that "bridges the gap" between an immediate funding need and a longer-term solution — typically repaid within 1 to 24 months through a property sale or refinance. It works in five steps: you share your project and exit strategy; we structure the deal and present it to the right lender from our 250+ panel; the lender issues formal terms; solicitors are instructed and the property valued; funds are released — typically within 5–14 days of enquiry.

Interest is usually "rolled up" — added to the loan and repaid as a lump sum at exit — meaning no monthly payments during the term. The full loan, rolled interest, and fees are cleared in one go when you sell or refinance.

A bridging loan is short-term, property-secured finance designed to "bridge the gap" between an immediate funding need and a longer-term solution — typically repaid within 1 to 24 months through the sale of a property or refinancing onto a mortgage.

They work in five steps: (1) you tell us about your project and exit strategy; (2) we structure the deal and present it to the right lender from our 250+ panel; (3) the lender issues formal terms; (4) solicitors are instructed and the property is valued; (5) funds are drawn down — typically 5–14 days from initial enquiry.

Interest is usually "rolled up" — added to the loan and repaid as a lump sum at exit — meaning no monthly payments during the term. This is what makes bridging useful for property projects where cash flow needs to be preserved. The full loan, interest, and fees are cleared in one go when you sell or refinance.

A bridging loan is a short-term, property-secured loan designed to "bridge the gap" between a financial need and a longer-term funding solution. Unlike traditional mortgages which can take weeks or months to arrange, bridging loans are designed for speed — often completing in days rather than weeks. They are typically repaid within 1 to 24 months, either through the sale of the property, refinancing onto a longer-term product, or from other sources of capital. They are secured against property (commercial, residential investment, land, or mixed-use) and the full loan amount plus interest is repaid at the end of the term as a lump sum.

The process works in five stages:

1. Enquiry & assessment — you tell us about your project and we assess the deal, the property, and the exit strategy.
2. Deal structuring — we present your deal to the most appropriate lender(s) from our panel of 250+ in its best format.
3. Terms issued — the lender provides a formal offer detailing the rate, fees, term, and conditions.
4. Legal & valuation — solicitors are instructed and the property is valued. We manage this entire process.
5. Funds released — once legal and valuation are complete, funds are drawn down — typically within 5-14 days of initial enquiry.

Interest can either be "rolled up" (added to the loan and repaid at the end) or "serviced" (paid monthly). Most commercial bridging clients choose rolled-up interest to preserve cash flow during the loan term.

Common uses include: purchasing property at auction (where you need to complete within 28 days), acquiring commercial or investment property quickly, raising capital against property you already own, funding refurbishment or renovation works, breaking a property chain, buying land with or without planning permission, bridging the gap while development finance is arranged, funding a business need secured against commercial property, and refinancing an existing loan that's expiring. Essentially, any scenario where you need property-backed finance faster than a traditional lender can provide it.

Regulated bridging is governed by the FCA and applies when the loan is secured against a property that the borrower (or a close family member) will live in as their primary residence. Unregulated bridging applies to everything else — commercial property, investment property, land, and any property that is not the borrower's main home. bridging.fund specialises exclusively in unregulated bridging. This means we can move faster, structure more flexibly, and access a wider range of lenders than firms constrained by FCA regulation.

The most common reasons someone uses bridging finance fall into five categories:

• Speed — when a deal needs to complete in days or weeks rather than the 2–3 months a mortgage takes. Auction purchases, time-sensitive acquisitions, and chain-breaks all fall here.
• Property condition — high-street lenders won't fund uninhabitable, derelict, or significantly below-standard properties. Bridging lenders price for the risk and lend on the asset as-is.
• Complex ownership — limited companies, SPVs, foreign nationals, and borrowers with adverse credit struggle with banks. Bridging is asset-focused, not income-focused.
• Chain-breaking — if a purchase is threatened by a stalled sale, bridging provides the capital to proceed while the original property sale completes.
• Capital release — property owners with equity tied up can bridge against it quickly to fund another deal, a business need, or a time-limited opportunity, redeemed on sale or refinance.

In every case the underlying logic is the same: bridging is expensive, fast capital for situations where the speed or flexibility creates a clear economic payoff. Use our total cost calculator to see whether the cost of a bridge makes sense for your deal.

Advantages:

• Speed — completion in as little as 5-14 days, compared to months for a traditional mortgage.
• Flexibility — bridging can fund scenarios that banks simply won't consider, including uninhabitable properties, land without planning, and complex ownership structures.
• No early repayment charges — most bridging loans can be repaid early without penalty, reducing your total cost if you exit sooner than planned.
• Property types — commercial, residential investment, land, mixed-use, HMOs, and properties in poor condition are all eligible.
• Asset-based — lenders focus on the property and exit strategy rather than your income or credit score.
• Immediate capital — unlock equity or complete purchases when timing is critical.

Disadvantages:

• Higher cost — interest rates (typically 0.50-1.5% per month) are higher than long-term mortgages. This is the price of speed and flexibility.
• Secured against property — if you can't repay, the lender can take possession of the secured property.
• Short term — bridging is designed as temporary finance (1-24 months). Extending beyond the agreed term incurs additional costs.
• Fees — arrangement fees, legal costs, and valuation fees add to the total cost of borrowing.
• Exit risk — if your exit strategy fails (sale falls through, refinance declined), you may face default interest or extension charges.

The bottom line: Bridging finance costs more than a mortgage — but it does things a mortgage can't. For time-sensitive deals, complex properties, or situations where speed creates value, the cost is typically a small fraction of the profit or opportunity it unlocks. Use our total cost calculator to see exactly what a bridge would cost for your deal.

Rolled up interest means the interest on your bridging loan is added to the loan balance during the term and repaid as a single lump sum when the loan is redeemed — typically on sale of the property or refinancing. This means no monthly interest payments during the loan term, preserving your cash flow for the project itself.

For example, on a £500,000 loan at 0.85% per month over 12 months, the interest would be £51,000. Rather than paying £4,250 per month, the full £51,000 is rolled up and repaid alongside the principal at the end of the term.

This is the most common arrangement for commercial bridging loans — and one of the key advantages over traditional bank finance. Most of our clients choose rolled up interest because it means no monthly costs to service during the project.

No. The vast majority of bridging loans we arrange have rolled up interest, meaning there are no monthly payments at all. Everything — the principal, interest, and fees — is repaid as one lump sum at the end of the term when you sell the property or refinance.

Some lenders do offer "serviced" interest where you pay interest monthly (similar to a mortgage), which gives a lower total cost if you have the cash flow to support it. We'll explain both options and recommend the structure that works best for your situation.

Retained interest is deducted from the loan upfront — the lender holds back the interest for the full term from your day-one advance. For example, on a £500,000 loan with £51,000 retained interest, you'd receive £449,000 on day one. If you repay early, the unused interest is typically refunded.

Rolled up interest is added to the loan balance over time and repaid at the end. You receive the full loan amount (less fees) on day one. Both methods mean no monthly payments — the difference is when the interest is calculated and how it affects your net advance.

Bridging finance costs depend on your loan size, term, LTV, property type, and exit strength. Budget for: interest at 0.40–1.50% per month; an arrangement fee of 1–2% of the loan amount; a valuation fee (typically £500–£5,000); legal fees on both sides (£2,000–£10,000); and a broker fee of around 1%. Most lenders offer zero-exit-fee products if you know where to look.

On a well-structured deal — sub-65% LTV, clean exit, investment property — total cost of borrowing over 6 months typically runs to 7–10% of the loan amount. On a more complex deal (higher LTV, commercial, adverse credit), 10–15% over 6 months is more realistic. Use our total cost calculator to build a precise figure before you commit.

The total cost of a bridging loan includes several components:

• Interest rate — typically 0.40% to 1.5% per month, depending on LTV, property type, borrower profile, and exit strategy.
• Arrangement fee — usually 1-2% of the loan amount, charged by the lender to set up the facility.
• Exit fee — some lenders charge 0.5-1% on redemption. Many of our panel lenders offer zero exit fee products.
• Valuation fee — the cost of a professional property valuation, typically £500-£5,000 depending on property value and complexity.
• Legal fees — both your solicitor's fees and the lender's legal costs, typically £2,000-£10,000 depending on deal complexity.
• Broker fee — our fee is typically 1% of the loan amount, confirmed upfront before you commit.

Use our total cost calculator to see a full indicative breakdown for your specific deal. We believe in total transparency — what you see is what you pay.

On a £200,000 bridging loan over 6 months at a mid-range rate of 0.75% per month, the total cost of borrowing would look roughly like this:

• Interest (0.75% × 6 months) — £9,000
• Arrangement fee (1.5%) — £3,000
• Broker fee (1%) — £2,000
• Valuation fee — approximately £500–£800
• Legal fees (both sides) — approximately £2,500–£4,000

Total: approximately £17,000–£19,000 — or roughly 8.5–9.5% of the loan amount for a 6-month term. A lower rate of 0.55% per month at sub-60% LTV could reduce total cost to around £14,000–£16,000; a higher-risk deal at 1.10% per month would add several thousand.

Note: most specialist bridging lenders have a minimum loan size of £100,000–£250,000 for commercial unregulated bridging. Our minimum is £250,000 — for loans below that level you'd need a residential regulated bridge or a specialist smaller-ticket lender. Use our total cost calculator for a full breakdown on your specific figures.

On a £200,000 bridging loan at a mid-range rate of 0.75% per month over 6 months, total cost of borrowing (interest, arrangement fee, valuation, legal, and broker fee combined) typically runs to approximately £17,000–£19,000 — roughly 8.5–9.5% of the loan amount. At a sharper rate of 0.55% per month the total comes down to around £14,000–£16,000; at 1.1% per month it rises to approximately £21,000–£24,000.

One important note: our specialist commercial bridging panel starts from £250,000. A £200,000 loan typically sits in the regulated residential market or smaller-ticket specialist lenders — we'd want to understand your full situation before advising on the best route. Use our total cost calculator to model the full cost for your loan amount and term.

On a £100,000 bridging loan over 6 months at a mid-range rate of 0.75% per month, a typical total cost of borrowing looks like this:

• Interest (0.75% × 6 months) — £4,500
• Arrangement fee (1.5%) — £1,500
• Broker fee (1%) — £1,000
• Valuation fee — approximately £400–£600
• Legal fees (both sides) — approximately £2,000–£3,500

Total: approximately £9,400–£11,100 — roughly 9–11% of the loan for a 6-month term. At a sharper 0.55% per month the total comes down to around £7,500–£9,000; at 1.10% per month it rises to approximately £11,500–£13,000.

One practical note: most specialist commercial bridging lenders, including us, start from £250,000. A £100,000 bridging loan typically sits in the regulated residential or smaller-ticket specialist market. If your requirement is at or near this level, get in touch and we'll advise on the right route. Use our total cost calculator to model the full cost for your own figures.

Bridging loan interest rates are quoted monthly rather than annually. The typical range in the UK is 0.40% to 1.50% per month — equivalent to roughly 5% to 18% per year — though the rate on any individual deal depends on several factors: loan-to-value (lower LTV = better rate); property type (residential investment is cheaper to lend against than commercial); borrower profile; exit strength; and loan term.

Our panel currently shows standard residential bridging from 0.50% per month at sub-70% LTV, rising to 0.65–0.75% at 75%+ LTV. Commercial rates start at 0.58–0.65% per month. Development exit is typically cheapest, from 0.47% per month at low LTV.

See our live rate tables for current indicative figures by product and LTV band, or use the total cost calculator to see what a specific rate means for your deal.

Several factors influence your rate: the loan-to-value ratio (lower LTV generally means better rates), the type and condition of the property, your experience as a borrower, the strength of your exit strategy, the loan term, and whether the deal is first or second charge. Two loans with the same headline rate can have very different total costs once fees are factored in — which is why we always advise comparing total cost of borrowing, not just the monthly rate.

Yes. Most bridging loans can be repaid early, and many lenders on our panel charge no early repayment penalty at all. Some lenders charge a minimum interest period (typically 1-3 months), meaning you'll pay interest for that period even if you repay sooner. We always clarify early repayment terms upfront so there are no surprises.

Our fee is typically 1% of the loan amount, confirmed upfront before you proceed. There are no hidden charges. In many cases, our ability to negotiate better lender terms — lower rates, reduced fees, or more favourable structures — more than offsets our fee. We only get paid on completion, so our interests are fully aligned with yours.

We arrange bridging loans from £250,000 upwards with no upper limit — our largest deal to date is £25 million, and we can structure facilities in excess of £50m or even £100m for the right deal. The amount you can borrow depends primarily on the loan-to-value ratio, which typically ranges from 60-75% depending on the property type, deal complexity, and lender appetite. Cross-charging additional properties can increase the amount available.

Yes — bridging loans can run up to 24 months (2 years), and several product types on our panel are specifically structured for longer terms. Heavy refurbishment, land with planning, and land without planning regularly complete on 12–24 month facilities. Standard residential and commercial bridging typically sit at 1–18 months, but 24-month terms are available where the deal justifies them.

The longer the term, the more interest accrues — with rolled-up interest, your total repayment increases with each additional month. Most borrowers plan to exit well inside the maximum term, using the full 24 months as a buffer rather than the target. If you genuinely need 2 years, we'll find lenders with that appetite and make sure the exit plan at month 24 is fully tested before you draw down.

Against a single property, bridging is typically capped at around 70-75% of its value, so a true 90% or 100% loan on one asset is rare. Higher leverage is usually achieved by adding security: cross-charging another property you own brings the combined loan-to-value down to a level lenders will fund, which can effectively cover up to 100% of a purchase price. A smaller number of specialist lenders also offer higher-LTV products for the strongest deals and exit strategies, generally at a higher rate. We'll tell you honestly what LTV is realistic for your specific deal rather than quote a headline figure you can't actually draw.

To get started, we typically need: details of the property (address, type, value), the loan amount required and purpose, your proposed exit strategy, proof of identity and address, and a brief overview of your property experience. Unlike banks, we don't require detailed business plans, extensive trading history, or months of financial statements. Bridging is asset-based — the property and the exit strategy are what matter most.

Yes. Many of our lenders take a common-sense approach to credit history. CCJs, defaults, missed payments, and even previous bankruptcy can be accommodated by the right lender with the right deal. Unlike high street banks, specialist bridging lenders assess each case individually — focusing on the property value and exit strategy rather than relying solely on credit scores. See our less-than-perfect credit page for more detail.

Yes — bridging lenders can and do decline applications. The most common reasons are:

• Weak or missing exit strategy — the single most common reason for refusal. A lender who can't see a credible path to repayment won't lend, regardless of property value.
• Insufficient equity / LTV too high — most bridging lenders cap at 70–75% LTV. A property with little equity or a purchase at a price close to full market value may not meet the threshold.
• Problematic title — legal issues such as restrictive covenants, missing planning consents, short leases, or unregistered land can block funding where a lender's solicitor can't clear the risk quickly.
• Severe adverse credit — while bridging is more permissive than a mortgage, active bankruptcies, undisclosed CCJs, or a history of property repossessions can cause refusal at some lenders.
• Property type / condition — a property so uninhabitable that there's no realistic path to value realisation, or a commercial property with no tenant and no lettable use, can be declined.

Being declined by one lender doesn't mean the deal is unfundable. Different lenders have different appetites — the right structuring and the right presentation to the right lender makes a significant difference. If you've been turned down, get in touch: we often find a route where others couldn't.

Our average decision time is 4 hours and average completion is 14 days. In urgent cases, we've completed in as little as 5 working days. The speed depends on the complexity of the deal, the lender, and how quickly legal and valuation can be instructed. For auction purchases, we can have terms agreed before you bid — giving you certainty on the day.

Not necessarily. While many bridging loans require a personal guarantee from the borrower or director, we have lenders on our panel who offer non-recourse lending — meaning the loan is secured purely against the property with no personal guarantee required. See our no personal guarantees page for more detail.

Yes — every bridging loan needs a clear, credible exit strategy. Common exits include: selling the property, refinancing onto a commercial mortgage or BTL product, completing a development and selling units, or repaying from business income or other capital sources. We help you plan the exit from day one.

We arrange finance against: commercial property (offices, retail, industrial, warehouses, leisure, healthcare), land with or without planning permission, mixed-use buildings, investment residential property (BTL, HMO, blocks), development sites, and semi-commercial property. We do not arrange regulated loans — meaning we cannot finance a property the borrower lives in as their primary home.

We are not FCA regulated because we specialise exclusively in unregulated commercial bridging finance — loans secured against property that is not the borrower's primary residence. This allows us to offer faster, more flexible solutions. If you need a regulated bridging loan (secured against your own home), we can refer you to an appropriate FCA-authorised broker.

Not through us. A bridging loan secured against a property you live in as your main home is classed as a regulated bridging loan and requires an FCA-authorised broker. We specialise exclusively in unregulated commercial bridging — investment property, commercial property, land, and development sites. If you need a regulated bridge, we can refer you to a suitable FCA-authorised firm.

Yes. We arrange both first and second charge bridging loans. A second charge sits behind your existing mortgage or loan, letting you raise additional capital without refinancing your entire facility. This is particularly useful when you have a competitive first charge rate you don't want to lose, or when speed is critical and a full refinance would take too long. See our second charge bridging page for more detail.

A first charge has priority — if the property is sold, the first charge lender is repaid first. A second charge sits behind the first charge and is repaid from whatever remains. Because second charge lenders take more risk, rates are typically higher than first charge. However, the total cost can still be lower than refinancing your entire facility, especially if your existing first charge has a favourable rate or early repayment penalties.

A second charge bridging loan sits behind an existing mortgage or loan on the same property. It allows you to raise additional capital without disturbing your existing first charge facility. Second charge rates are typically higher than first charge, but it can be the fastest and most cost-effective way to raise capital when you have equity tied up in a property.

Mezzanine finance is a layer of funding that sits between the senior debt (first charge loan) and the borrower's own equity. It allows developers to borrow more than a single lender would typically provide — sometimes up to 85-90% of costs. Mezzanine lenders take higher risk and charge higher rates, but for the right deal it can unlock projects that wouldn't otherwise be viable.

Often, yes. Many of our clients come to us after being declined by other brokers or lenders. The issue is rarely the deal itself — it's how it was presented. We restructure the deal and match it to the right lender from our panel of 250+, including private funds and specialist capital that most brokers can't access.

There have been documented cases of consumer detriment in the UK bridging market, primarily involving unregulated loans arranged on properties where borrowers lived as their primary residence. Under UK law, a loan secured against a borrower's main home is a regulated bridging loan that must be arranged through an FCA-authorised broker. When this requirement is ignored — through broker negligence or deliberate mis-selling — borrowers lose the consumer protections the FCA mandates, and outcomes can be very serious. The Financial Ombudsman has handled a number of these cases. The correct response is simple: any loan on a property you live in must go through an FCA-authorised firm. For commercial and investment property — which is our market — bridging has an established track record used responsibly by property professionals. See our full guide: Is Bridging Finance Safe?

Commercial bridging finance is a well-established product with real risks that are manageable with proper planning. The key risks are: exit strategy failure (the most common problem — if you can't repay on time, default interest accrues and enforcement becomes possible), cost accumulation on delays, and opaque fee structures from poor-quality brokers.

The product is not consequence-free — it is secured against property, and lenders can and will enforce if the loan defaults without resolution. It is appropriate for borrowers who have a genuine short-term need, a stress-tested exit, and understand what they are committing to. "Safe" in this context means used correctly by someone who has read their facility agreement, verified their exit route, and chosen a transparent broker. See our full guide: Bridging Finance Risks Explained.

If the loan is not repaid at term end, the lender can charge default interest (typically higher than the contractual rate — the exact figure is in your facility agreement), and can enforce against the security through the appointment of an LPA receiver who takes control of the property. Most lenders prefer to work with borrowers on a short extension or managed exit rather than enforce immediately, but this is at the lender's discretion and comes at cost.

This is why we stress-test exit strategies for every deal before drawdown. A bridge that cannot exit on the planned route is not a deal we should be arranging — and we will tell you so upfront rather than proceed and hope for the best.

Key indicators of a trustworthy commercial bridging broker: they provide a full itemised Total Cost of Borrowing upfront (rate, all fees, estimated legal and valuation costs) before you commit to any lender; they ask detailed questions about your exit strategy and stress-test it rather than just accepting it; they are transparent about their broker fee and when it is payable; they are a registered UK company with a verifiable trading history; and they will tell you honestly when bridging is not the right product for your situation.

Red flags: headline rates quoted before your deal is assessed, pressure to proceed quickly, fees disclosed incrementally rather than upfront, no serious discussion of your exit, and any suggestion of arranging an unregulated loan on a property you live in.