What Is a Bridging Loan and When Should You Use One?
- Zak Hewes
- Aug 14
- 3 min read
If you’re looking to move quickly in the property market, or need short-term access to funds, a bridging loan could be the solution you’ve been searching for. While not as well-known as traditional mortgages, bridging loans in the UK offer speed, flexibility, and the financial breathing room to seize the right opportunity.
In this guide, we’ll explain how bridging loans work, when you should consider using one, and why they’re a powerful tool when used correctly.
🏗️ What Is a Bridging Loan? (UK Explained)
A bridging loan is a type of short-term property finance designed to “bridge the gap” between two financial transactions—such as buying a new property before selling your current one.
They’re typically:
Secured loans against property or land
Available for residential, buy-to-let, or commercial purposes
Short-term – usually 1 to 18 months
Interest-only (with options to roll up the interest)
They can be arranged quickly—sometimes in a matter of days—making them ideal for time-sensitive situations.
🔑 When Should You Use a Bridging Loan?
Here are the most common scenarios where bridging finance is the smart choice:
1. Breaking a Property Chain
If you’re buying a new home but haven’t yet sold your current one, a bridging loan gives you the funds to proceed with the purchase—avoiding losing your dream home.
2. Auction Purchases
Auction deals usually require completion within 28 days. Traditional mortgages take too long—bridging loans give you the speed you need.
3. Buying Before Sale Proceeds Are Available
This is common with probate, divorce settlements, or inherited properties.
4. Renovation or Development Projects
If the property is uninhabitable or unmortgageable (e.g. no kitchen or bathroom), a bridging loan can fund the purchase and works until a standard mortgage becomes available.
5. Business or Investment Opportunities
Landlords, developers, and company directors often use bridging finance to unlock capital quickly for growth opportunities.
💰 How Much Can You Borrow?
Bridging loans typically start from £25,000
Some lenders go into the millions for large developments or portfolios
You can borrow up to 75% loan-to-value (LTV)—sometimes more with additional security
Interest rates vary depending on the loan size, term, and exit strategy
We’ll help you find the most competitive terms for your situation.
🔁 What’s the Repayment Strategy?
Lenders want to know how you’ll repay the loan—this is known as the exit strategy. Common options include:
Sale of your existing property
Refinancing with a standard mortgage
Business income or expected funds
⚖️ Pros and Cons of Bridging Loans
✅ Pros:
Fast access to large funds
Flexible lending criteria
Ideal for unique or time-sensitive purchases
Can fund properties traditional lenders won’t touch
❌ Cons:
Higher interest rates than standard mortgages
Fees can apply (valuation, arrangement, legal)
Your property is at risk if you can’t repay
This is why expert advice is essential before taking out bridging finance.
🧠 Bridging Loan Advice from a Trusted Broker
At Your Mortgage Manager, we’ve helped clients use bridging loans to:
Upsize before their sale completed
Buy auction homes
Fund property flips and refurbishments
Rescue broken chains
Unlock capital without long delays
We work with both mainstream and specialist lenders, and tailor each recommendation to your goals, timelines, and exit plans.
💬 Ready to Explore Bridging Loan Options?
If you need fast, flexible short-term property finance, let’s talk.
📞 Call: 0115 9902551
📩 Email: info@yourmortgagemanager.co.uk
Your Mortgage Manager
Making mortgages—and short-term finance—make sense.
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