Short-term property finance
Business Bridging Loans
A bridging loan is short-term finance secured on property, usually for 1 to 24 months, used to complete a purchase quickly or fund a gap until a sale or longer-term mortgage is in place. Interest is charged monthly and is often added to the loan rather than paid each month.
Funding Plus compares bridging lenders for auction purchases, refurbishments, chain breaks and business cash needs secured on property.
- Funds in as little as 1 to 3 weeks
- Interest can be rolled up
- Unmortgageable property considered
Reviewed by the Funding Plus team · Last updated October 2026
Step 1 of 3 · Bridging Loans
How much do you need?
Takes about a minute. No impact on your credit score.
Bridging Loans at a Glance
- Amounts
- £50k – £25m
- Terms
- 1 – 24 months
- Loan to value
- Up to 70% – 75%
- Security
- Property
- Best for
- Speed and short-term needs
Typical figures across the market. Your offers depend on your business, the lender and the security available.
How Bridging Loans Work
- 1Explain the purchase and the exitHow you'll repay: a sale, a refinance or another source of money.
- 2Get termsLenders confirm the amount, monthly rate and fees.
- 3Fast valuation and legalsBridging lenders work to tight deadlines, such as auction completions.
- 4Complete and exitYou use the funds, then repay the loan in full at the end of the term.
How Much Do Bridging Loans Cost?
Bridging is priced as a monthly interest rate, plus arrangement and exit fees. It's more expensive than a mortgage, so it only makes sense for short periods with a clear way to repay.
- Monthly interest, often rolled up into the loan
- Arrangement fee, often around 2%
- Possible exit fee
- Valuation and legal costs
Worked example
A £500,000 bridge for 9 months
- Loan amount
- £500,000
- Monthly rate
- 0.9%
- Interest over 9 months (rolled up)
- £40,500
- Arrangement fee (2%)
- £10,000
- Repaid at the end
- £550,500
Illustrative only, not a quote. Excludes valuation, legal and any exit fees.
Who Can Get Bridging Loans?
- Property with enough value to secure the loan
- A clear, credible exit plan
- A deposit or equity, usually 25% or more
- Experience may be needed for heavier refurbishments
- Credit history matters less than the property and exit
What You'll Need to Apply
- Property details and purchase price
- Evidence of the exit, such as a mortgage offer or sale plan
- Schedule of works for refurbishments
- Assets and liabilities statement
Pros and Cons of Bridging Loans
Advantages
- Very fast compared with a mortgage
- Funds property other lenders won't
- Flexible on credit history
- No monthly payments if interest is rolled up
Things to watch
- Expensive if it runs longer than planned
- The property is at risk if the exit fails
- Fees add up on short loans
- Bridging on your own home is regulated
Common Uses
Auction purchases
Complete within the usual 28 days of the hammer falling.
Refurbishment
Buy, improve and then refinance onto a mortgage at the higher value.
Business cash flow
Raise short-term funds secured on property while longer-term finance is arranged.
Bridging Loans vs Other Options
| Option | Best for | Typical speed | Security |
|---|---|---|---|
| Bridging loan | Fast, short-term property needs | 1 – 3 weeks | Property |
| Commercial mortgage | Long-term ownership | 4 – 12 weeks | The property |
| Development finance | Building or major conversions | 4 – 10 weeks | The site |
| Secured business loan | Raising money over years | 2 – 6 weeks | Property |
Who Uses Bridging Loans?
Bridging loans are used by property investors and businesses buying or refinancing premises.
Customer story
“[Real customer story for Bridging Loans: what they needed, how quickly it was arranged and what it let them do.]”
[Name], [Role], [Business name] · [Amount] bridging loan
Bridging Loans FAQs
How fast can a bridging loan complete?
Often within 1 to 3 weeks, and sometimes faster with a quick valuation and responsive solicitors.
What is an exit strategy?
How you'll repay the loan at the end, usually by selling the property or refinancing onto a mortgage. Lenders won't lend without a credible one.
What does rolled-up interest mean?
Instead of monthly payments, the interest is added to the loan and repaid in one go at the end.
Open or closed bridge?
A closed bridge has a fixed repayment date, often because a sale has exchanged. An open bridge has an expected date but more flexibility.
Are bridging loans regulated?
Bridging on a property you or your family live in is regulated. Business and investment bridging usually isn't.
Related Guides
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