What is a bridging loan? A plain-English guide
A bridging loan is fast, short-term finance secured against property. It’s used to move quickly, at auction, in a chain break, or to refurbish before refinancing, and is repaid from a clear exit, usually a sale or a longer-term mortgage.
How bridging loans work
Lenders secure the loan against property and assess the loan-to-value, borrower, property and exit. A bridging process may fit a shorter contractual timetable than some mainstream mortgage routes, but valuation, underwriting, legal work and documents still control completion.
Key takeaways
- Short-term: typically 1–24 months.
- Priced monthly (≈0.55–0.95%/mo), not annually.
- You need a credible exit before a lender will proceed.
When does it make sense?
Auction purchases, chain breaks, property outside mainstream mortgage policy, probate, and buy-refurb-refinance projects are common cases. A broker can compare suitable lenders and explain when a credit search may occur before you choose whether to apply.
What does it cost?
Monthly interest plus an arrangement fee (usually 1–2%), a valuation, and legal costs. We disclose every figure in writing before you commit, and indicative quotes don’t affect your credit score.
Have a deal in mind?
Tell us the property, amount, purpose, deadline and exit. We will compare suitable bridging routes before you decide whether to apply.
Get a free bridging finance quote