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Bridging Finance

Short-term finance that doesn’t cost you the deal.

Bridging is precision tooling — fast capital to plug a gap or move on an opportunity. Used carefully, with a clear exit, it’s the difference between securing a property and watching it go.

Bridging finance is not regulated by the Financial Conduct Authority and is a high-cost form of borrowing. It should only be used where a clear, realistic exit strategy is in place.

Architectural exterior of a brick-and-stone Victorian property in soft daylight
Independent advice from 80+ lenders
FCA Registered No. 927290
Local specialists Derby & Derbyshire
Mortgages arranged since 2009

When bridging actually makes sense

Bridging finance has a reputation problem. Used badly it’s expensive, stressful, and ends in tears. Used correctly — with a clear exit, sensible loan-to-value, and the right lender — it’s a precision tool that opens up deals nothing else can touch. The job of a good broker is to know which side of that line your situation sits on, and to tell you plainly if it’s the wrong tool.

We arrange bridging for a few archetypal scenarios:

  • Chain breaks — onward purchase ready to exchange, sale delayed or fallen through. A short bridge buys time without losing the property you’ve set your heart on.
  • Auction purchases — 28-day completion is too tight for almost any term mortgage. A pre-agreed bridge gets you to completion, then refinances onto a term product.
  • Light refurbishment — properties that need work before they’re mortgageable in their current state. Bridge to complete the works, then refinance once the asset meets standard lender criteria.
  • Heavy refurbishment and conversion — staged drawdowns funding works as they progress, often with retained interest rolling up against the facility.
  • Second-charge bridging — capital raising against existing equity without disturbing a low-rate first charge.

Exit strategy is the entire game

A bridge without an exit is just expensive debt with a deadline. The first thing we’ll ask is: how does this loan get repaid? If the answer is “we’ll sell within six months” we want to see how the property has been priced, what comparables suggest, and what your fallback is if it takes nine. If the answer is “refinance onto a buy to let mortgage” we run the stress test now, against today’s rates, to confirm the term lender will play ball.

This isn’t pedantry. It’s the single difference between bridging that ends with a profitable exit and bridging that ends with default interest charges and a forced sale. We’d rather decline a case at the first call than arrange a facility that doesn’t stack up.

Working with us on a bridge

A typical bridging conversation starts with a property and a timeline. We’ll look at: loan-to-value the lender will support, exit route credibility, your experience (most lenders look more kindly on landlords or developers with a track record), and the all-in cost of the facility over the realistic term — not just the headline monthly rate.

Where it works, we move fast. Where it doesn’t, we’ll tell you why and, where possible, suggest the alternative — a term product, a different structure, or a different lender entirely. Either answer is more useful than an expensive yes.

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FAQ

Frequently asked

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How fast can a bridging loan actually complete?

In genuinely urgent cases we’ve seen full completion inside ten working days, though two to three weeks is more typical. The variables are the property, the lender’s valuer, the solicitors, and how clean the title is. We’ll give you an honest read at the first call rather than a marketing number.

What does bridging cost?

Rates are quoted monthly rather than annually — typical ranges sit between 0.5% and 1.2% per month depending on loan-to-value, property type, and exit certainty. There are also arrangement, valuation, and legal fees. We model the all-in cost over the realistic term so the figure you make decisions on includes everything.

What counts as a credible exit?

Most often: refinance onto a term mortgage (residential or buy to let), sale of the bridged property, or sale of another asset. Lenders want to see evidence — agreed terms with a term lender, a property already under offer, or clear timeline to completion. Vague intentions don’t qualify, and that’s a feature, not a bug.

Can I use bridging for an auction purchase?

Yes — auction is one of the classic use cases. We can have an Agreement in Principle in place before you bid, so you know the funding is real before the hammer falls. Without that, the 28-day clock on auction completion is brutal.

Is bridging finance regulated?

Most commercial bridging — for investment properties, refurbishment, or business purposes — is not regulated by the FCA. Bridging on a property you intend to live in (regulated bridging) is. We’ll tell you up front which side of the line your case sits on, which changes the lender panel and the documentation.

Do you charge a fee?

For bridging we typically charge a client fee in addition to the lender procuration fee, reflecting the speed and complexity of the work. Any fee is disclosed in writing before any work begins — no surprises.

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