Bridging Finance: When and How to Use It
Bridging finance can be a powerful tool when used correctly. Learn when bridging makes sense and how to get the best terms.
Bridging finance is short-term, fast finance secured against property. It is designed to bridge a gap — typically between purchasing a new property and selling or refinancing an existing one.
When to Use Bridging Finance
- Auction purchases where completion is required within 28 days
- Chain-break situations where you need to complete before your current property sells
- Property refurbishment before refinancing to a long-term mortgage
- Quick completions where speed is essential
Key Considerations
Exit Strategy
The most important element of any bridging application is a clear, realistic exit strategy — how you will repay the loan. This is typically through property sale or refinance.
Rates and Fees
Bridging rates are higher than long-term finance (typically 0.5-1.5% per month), reflecting the short-term, higher-risk nature. However, when used correctly, the total cost can be very reasonable for the speed and flexibility provided.
LTV
Most bridging lenders offer up to 70-75% LTV, with some going higher for experienced borrowers with additional security.
Could this apply to your business?
Speak to a specialist about your own circumstances — free, no obligation.
Related resources
This article is published for general information only and does not constitute financial, tax, accounting or legal advice, or a recommendation to apply for any product. Any rates, LTV ranges, fees, timelines, tax rules or government schemes mentioned are indicative and reflect general market norms at the time of writing; they may change and should be confirmed with a specialist before acting. Read our editorial policy to see how we produce and review our content.