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Bridging Loans

Fast bridging loan finance when you need it most

When speed is critical, bridging loans provide fast, flexible property finance. We work with specialist lenders who can provide indicative decisions within hours and complete in as little as 7 days.

Within hours
Decision
From 7 days
Completion
Up to 80%
Max LTV
1–24 months
Terms
Urgent? Call now: 0844 884 9748
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When is a bridging loan the right solution?

Bridging loans solve time-sensitive property finance problems that standard mortgages can't.

Breaking a property chain

Buy your new home before selling your current one without the stress of synchronising completions.

Auction purchases

Auctions require completion in 28 days. Bridging loans can be arranged in time to meet this tight deadline.

Uninhabitable property

Many mortgage lenders won't lend on properties in poor condition. A bridging loan lets you buy and renovate first.

Development finance

Fund property development projects including conversions, refurbishments, and new builds.

Commercial to residential

Finance permitted development or planning-stage conversions that standard lenders won't touch.

Capital raising

Raise capital quickly against property you own when traditional lenders can't move fast enough.

How the bridging loan process works

From your first call to funds in your account, typically 7–21 days.

01

Initial call: understand your need

We discuss your situation in detail: what you need the funds for, the security available, your timeline, and your exit strategy. We give you a realistic indication of what's achievable and at what cost. Usually within the same day.

02

Decision in Principle (same day)

We approach the most suitable lenders from our specialist bridging panel. Most provide a DIP within hours. This is not a full credit check and won't affect your credit score.

03

Full application and valuation

We prepare your full application with all supporting documentation. The lender instructs a surveyor to value the security property. We manage this stage and chase all parties.

04

Legal work and offer

The lender's solicitors and your solicitor conduct the legal due diligence. For simple cases this can be completed in 3–5 days. The lender issues a formal offer once all conditions are met.

05

Funds released: you complete

On the agreed completion date, funds are transferred to your solicitor. For auction purchases this can happen within the 28-day deadline. You are now free to proceed with your purchase or project.

06

Exit: loan repaid

At the end of the bridging term, you repay the loan from your agreed exit: property sale, refinance to a standard mortgage, or development finance drawdown. We can help arrange your exit finance in advance so there's no gap.

Bridging loan costs explained

Bridging finance involves several costs beyond the interest rate. Understanding the full picture helps you compare deals accurately.

Monthly interest rate0.45% – 1.5%/month

Expressed monthly (not annually). 0.55%/month = ~6.6% pa. Rate depends on LTV, property type, and exit strength.

Arrangement fee1% – 2% of loan

Charged by the lender. Usually added to the loan rather than paid upfront, but increases the total borrowing.

Valuation fee£300 – £1,500+

Depends on property value and type. Fast-track valuations (24–48hrs) cost more but can be essential for auction purchases.

Legal fees£1,000 – £3,000

You pay both your own solicitor and the lender's. Using a solicitor experienced in bridging speeds up the process significantly.

Exit fee0 – 1%

Some lenders charge a fee on redemption. We factor this in when comparing deals. A lower rate with an exit fee may cost more overall.

Broker feeOur fee: NIL upfront

We are paid a procuration fee by the lender. There is no upfront broker fee for bridging loans arranged through us.

Important: Always calculate the total cost of credit, including interest and all fees, for the full term. A bridging loan at 0.55%/month for 6 months on a £500,000 loan costs approximately £16,500 in interest alone, before fees. We model the full cost for every deal we recommend.

Understanding bridging loans

Open bridging loans

No fixed repayment date. You repay when your exit completes. Suitable when you have a clear exit but can't guarantee the exact date (e.g., a property sale that hasn't exchanged yet). Usually available for up to 12 months, sometimes 24. Rates are typically slightly higher to compensate for the lender's uncertainty.

Closed bridging loans

A fixed repayment date is agreed at the outset, typically because exchange has already happened and completion is confirmed. The certainty reduces the lender's risk, which usually means a lower rate. Most auction bridging falls into this category once the auction is won.

First charge bridging

The bridging lender has the first legal charge over the security property, meaning they are first in line if the loan defaults. Lower risk for the lender = lower rates. Used when there is no existing mortgage on the security property.

Second charge bridging

The bridging lender takes a second charge behind an existing mortgage. Higher risk = slightly higher rates, and the first charge lender's consent is usually required. Used when raising capital against a property that already has a mortgage. Common for funding a deposit on a new purchase.

Understanding bridging loan interest

A bridging loan is a short-term secured loan used to "bridge" a gap in property finance. They are typically used when you need to move quickly, faster than a traditional mortgage allows, or when the property or situation doesn't fit standard mortgage criteria.

Interest is typically "rolled up" rather than paid monthly. It accrues daily and is settled in full when the loan is repaid. This means there are no monthly outgoings during the loan term, which helps cash flow on development and renovation projects. However, rolling up interest means you pay interest on interest, so shorter terms are always preferable.

The key to a successful bridging loan is a credible, well-documented exit strategy. Lenders want to know exactly how and when you will repay the loan before they approve it. Common exits include the sale of a property, refinancing onto a standard mortgage once renovations are complete, or the drawdown of longer-term development finance. We help you formulate and present this compellingly.

Bridging loan FAQs

How quickly can a bridging loan be arranged?
Bridging loans can be arranged much faster than standard mortgages. With all documentation ready, a straightforward bridging loan can be completed in 7–14 days. More complex cases may take 3–4 weeks. We work with lenders who can provide indicative decisions within hours.
What are typical bridging loan rates?
Bridging loan rates are quoted monthly rather than annually (e.g., 0.55%–1.5% per month). The rate depends on the loan-to-value, property type, your exit strategy, and the lender. We search the market to find the most competitive rate for your situation.
What is an exit strategy and why does it matter?
An exit strategy is your plan for repaying the bridging loan, typically the sale of the property, or refinancing onto a long-term mortgage. Lenders require a credible exit strategy before approving a bridging loan. We help you formulate and present this effectively.
Can I get a bridging loan with bad credit?
Yes. Bridging lenders are primarily asset-based lenders. They focus more on the value of the security and the exit strategy than on credit history. We work with specialist lenders who can accommodate adverse credit.
What is the maximum term for a bridging loan?
Bridging loans are designed to be short-term, typically 1 to 24 months. The maximum term varies by lender. You repay the loan (plus rolled-up interest) when your exit strategy completes. Interest can usually be rolled up so there are no monthly payments.
Are bridging loans regulated?
First charge bridging loans where the security is your main residence are regulated by the Financial Conduct Authority. Most commercial and investment bridging loans are unregulated. We will confirm the regulatory position for your specific loan at the outset.

Need a bridging loan fast?

We provide fast decisions and work to complete your bridging loan as quickly as possible. Call us now for urgent enquiries.

Security may be required. Bridging loans are not suitable for long-term borrowing. Your property may be repossessed if you do not repay.

Some forms of Bridging Loans are not regulated by the Financial Conduct Authority.

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