Bridging Finance in the UK
Fast, flexible short term property finance for auctions, refurbishments, chain breaks and refinancing.
Speed-focused
Designed for time-sensitive transactions where traditional lenders can’t move quickly enough.
Property-led underwriting
Underwriting focuses on the asset and a credible exit strategy, not just a tick-box approach.
Structured for real scenarios
Auction completions, chain breaks, refurbishments, refinance and developer bridging.
Important note (regulated vs unregulated)
Bridging loans can be regulated by the FCA when secured against a property that the borrower or their immediate family will occupy.
Loans for investment properties are typically unregulated. For consumer guidance, see the FCA:
mortgage guidance and
FCA homepage.
On this page
What Is Bridging Finance?
Bridging finance (also called a bridging loan or bridge loan) is a short term secured loan,
typically lasting between 3 and 18 months. It is secured against property and is designed to “bridge” a temporary funding gap.
Unlike a traditional mortgage, bridging finance focuses primarily on the asset and the exit strategy. It’s commonly used when time is critical,
or when a property is currently unsuitable for long-term lending.
How Bridging Loans Work
A bridging loan is secured against residential, semi-commercial or commercial property. Underwriting typically looks at:
- Property value and saleability
- Exit strategy (sale or refinance)
- Loan-to-value (LTV) and overall structure
- Legal title and due diligence
For market insights and the broader UK lending landscape, see UK Finance:
https://www.ukfinance.org.uk/
Common Uses of Bridging Finance
1) Auction purchases (28-day completion)
Auctions are one of the most common reasons borrowers use bridging finance. When completion is required within 28 days, a bridging loan can help you
complete on time and refinance later. Learn more:
Auction Bridging Loans.
2) Chain breaks
If a sale falls through but your onward purchase must complete, a bridging loan can provide temporary funding until your original sale completes.
3) Refurbishment & unmortgageable property
Properties that are currently unmortgageable (e.g., missing kitchen/bathroom, structural issues) can be funded with bridging finance,
refurbished, and then refinanced onto a long-term product. See:
Refurbishment Bridging Loans.
4) Refinance & equity release
Bridging finance can refinance existing lending, release capital quickly, and provide time to execute a sale or refinance exit.
5) Developer bridging finance
Developers use bridging finance for site acquisitions, planning uplift, and pre-development capital before longer-term development finance.
See: Developer Bridging Finance.
How Quickly Can Bridging Finance Complete?
Completion speed depends on valuation access, legal readiness and property title complexity. Many bridging loans complete within 7–21 days.
Urgent cases can be faster if documentation and solicitors are ready.
Typical timeline
- Day 1–2: enquiry + decision in principle
- Day 3–7: valuation instructed (access arranged)
- Day 7–14: legal due diligence + final underwriting
- Completion: often within 7–21 days (case dependent)
If you need speed, see our dedicated page:
Fast Bridging Loans.
Rates & Interest Structures
Bridging loan rates are usually quoted monthly and vary based on LTV, property type, exit strategy strength and complexity.
Interest can be structured as:
- Serviced: paid monthly
- Rolled-up: added to the loan and repaid at the end
- Retained: held back from the advance to cover interest
For valuation standards and professionalism in UK property surveying, see RICS:
https://www.rics.org/
Exit Strategies (How the Loan Is Repaid)
The exit strategy is how the bridging loan will be repaid. Common exits include sale, refinance onto a longer-term mortgage, or repayment from another asset.
- Sale: sell the property at the end of the term
- Refinance: refinance once works/tenancy are in place
- Other asset sale: repay from a separate asset disposal
Public records are often used during legal due diligence. HM Land Registry:
https://www.gov.uk/government/organisations/land-registry
Bridging Finance vs a Traditional Mortgage
| Feature | Bridging Finance | Traditional Mortgage |
|---|---|---|
| Speed | Fast (often 7–21 days) | Slower (weeks to months) |
| Use case | Short term, time-sensitive | Long-term ownership |
| Property condition | Can fund unmortgageable assets | Usually requires habitable condition |
| Cost | Higher monthly cost, shorter term | Lower cost, longer term |
The Berkeley Credit Process
- Enquiry: share your scenario, timeline and exit
- Decision in principle: quick view on structure and viability
- Valuation + legal: instructed once aligned
- Offer: formal terms issued
- Completion: funds released once legals complete
Recent Completion Example (Template)
Example: £1.15m residential auction purchase (England) completed in 11 working days at 68% LTV,
with a refinance exit planned after refurbishment. (Replace with your real case study once published.)
Add real completions like this to strengthen trust and rankings. You can host them here:
Bridging Loan Case Studies.
FAQs
How quickly can bridging finance complete?
Many bridging loans complete within 7–21 days depending on valuation access, solicitor speed, and title complexity. Urgent cases can complete faster when documentation is ready.
Is bridging finance regulated?
It can be. Loans are typically regulated when secured against a property you (or immediate family) will occupy. Investment property bridging is usually unregulated.
Can bridging finance be used for refurbishment?
Yes — bridging is commonly used to purchase and improve unmortgageable property before refinancing.
See: Refurbishment Bridging Loans.
What exit strategies are acceptable?
Common exits include sale, refinance onto a longer-term product, or repayment from another asset. A credible exit strategy is essential.
Explore related bridging solutions
Trust & transparency
Always seek independent legal advice before entering any financial agreement.
Public resources: FCA,
UK Finance,
RICS,
HM Land Registry.
Speak to a Bridging Finance Specialist
If you need fast, flexible short term property finance in the UK, we can assess your scenario quickly and advise on structure, costs and timelines.