Bridging Loans
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Bridging loans for property investment, development, or commercial use.
£25,000 to £5,000,000
Quick Short-term finance
Fast online enquiry
Bridging Loans
Unregulated bridging loans for business or investment purposes, secured against property.
Property investment purchases
Auction finance
Property refurbishment or light development
Refinance of existing short-term borrowing
Am I eligible?
Eligibility can vary between lenders. As a general rule, you are likely to be eligible for a bridging loan if:
You have a property to use as security
You can explain a clear exit plan, such as sale or refinance
The property type and loan-to-value fall within a lender’s criteria
You can provide supporting documents quickly when requested
Think carefully: Securing borrowing against property puts the property at risk. If you fail to keep up with repayments on a mortgage or other secured borrowing, the property used as security may be repossessed.
Why use a broker?
Bridging finance is specialist, and lender criteria can vary significantly. A broker can help you compare options and move things forward more efficiently.
Exclusive products
Many bridging lenders work primarily through intermediaries, so some products may only be available via brokers.
Access to multiple lenders
A broker can review your scenario and approach lenders whose criteria are more likely to fit, rather than you contacting lenders one-by-one.
Clearer support
We’ll introduce you to a specialist broker who can explain the process, likely costs and next steps once they understand your scenario. We act as an introducer only and do not provide advice or arrange loans.
You're in good company
Why use a bridging loan?
Bridging finance is designed for short-term funding gaps where timing matters. In some scenarios, lenders may be able to move faster than traditional routes, using property as security, with the loan repaid through a clear exit plan such as a sale or refinance.
Speed for time-sensitive transactions
Bridging loans are often used when you need to complete quickly, such as buying at auction, breaking a chain, or securing a property before longer-term funding is in place. Timescales still depend on valuation, legal work, and how quickly documents can be provided.
Short-term funding with a clear exit plan
Bridging is typically taken over months rather than years. Instead of being built around long-term repayments, it’s usually structured around how the loan will be repaid at the end of the term, for example from a property sale or refinancing onto longer-term finance.
For specialist property deals
Bridging lenders may place more weight on the property and the exit plan than a standard personal-loan style assessment. This can help where the property is non-standard, needs work, or the borrower’s circumstances don’t fit high-street criteria. A broker can confirm what’s realistic based on your situation and the property involved.
Frequently Asked Questions
How quickly can a bridging loan complete in the UK?
Bridging finance is often used when time matters, but completion speed depends on the practical steps rather than the label “bridging”. The biggest factors are usually valuation availability, solicitor turnaround times, the property’s complexity (for example, mixed-use or unusual construction), and how quickly documents can be provided.
Squared Money will introduce you to a specialist advisor who can give you a realistic timeline once they understand the property, the loan structure, and your deadline.
How much can I borrow, and how does loan-to-value work for bridging finance?
Most bridging lenders work from the property value and the loan-to-value (LTV), which is simply the loan amount compared to the value of the property being used as security. The maximum LTV available can vary based on things like the property type, whether it’s a purchase or refinance, the condition of the security, and how the loan will be repaid (your “exit strategy”).
It’s also worth knowing the difference between gross and net borrowing. With some bridging loans, certain costs (for example arrangement fees or interest under specific structures) can reduce the net amount you actually receive, even if the headline loan figure stays the same.
When we introduce you to a advisor, they’ll talk you through what’s realistic for your scenario and explain how fees and interest affect the amount you receive and the amount you repay.
What counts as a strong exit strategy for a bridging loan?
Bridging is usually designed around a clear repayment plan at the end of the term, so lenders and brokers tend to focus heavily on the exit strategy.
Common exit routes include:
selling the property (or another asset) within a defined timescale
refinancing onto longer-term finance (such as a buy-to-let mortgage or commercial mortgage)
completing a development or refurbishment and then refinancing or selling
a known incoming event, such as release of funds from another transaction
A “strong” exit strategy is usually one that is specific, time-bound, and supported by evidence where possible (for example, a sales strategy, refinance intention, or clear project plan).
How is bridging loan interest charged (monthly, rolled-up, retained), and what does that mean for repayments?
Bridging interest can be structured in different ways, and the structure affects cash flow and what you repay.
Serviced interest: you pay interest monthly, which can help keep the final repayment lower, but it relies on you having ongoing cash flow.
Rolled-up interest: interest is added to the loan balance over the term and paid at the end, rather than being paid each month. This can increase the final amount repaid.
Retained interest: the lender calculates interest for an agreed period up front and “retains” it from the initial advance, which can reduce the net amount you receive at the start.
The right structure depends on the deal mechanics and the exit plan. When we introduce you to a advisor, they’ll explain the interest options available for your scenario and how each one affects both monthly payments (if any) and the final repayment figure.
What fees should I expect with bridging finance and when are they paid?
Bridging loans can involve several different costs, and the mix varies by lender and deal type. Common fee types include:
arrangement fee (often a percentage of the loan)
valuation fee (for the lender’s valuation report)
legal fees (your solicitor and the lender’s solicitor, plus searches)
broker fee (if the broker charges one, and how it’s paid varies)
admin or completion fees (sometimes applied, depending on lender)
exit fee (less common, but some lenders apply one)
When fees are paid also varies. For example, valuation fees are often paid early in the process, while some lender fees may be added to the loan and paid on completion.
What types of property can be used as security
Bridging lenders can consider a wide range of property types, but criteria can change a lot from lender to lender. Depending on the broker and lender panel, security may include:
residential investment property (including buy-to-let)
HMOs and multi-unit blocks (subject to lender criteria)
semi-commercial and mixed-use property
commercial property
land (usually with additional scrutiny around planning, access, and exit)
auction purchases (where timelines are often tight)
Property condition matters too. Some lenders are comfortable with “non-standard” or property needing works, while others are more limited. An advisor can match your property type and circumstances to lenders who are more likely to consider it.
Can bridging finance be used for refurbishment or development, and what’s the difference between light and heavy works?
Bridging can sometimes support refurbishment or development, but the type of works usually determines what kind of finance is suitable.
Light refurbishment often means cosmetic or non-structural works (for example kitchens, bathrooms, redecorating, windows). These scenarios are more commonly considered within standard bridging.
Heavy works usually refers to structural changes, extensions, conversions, or anything requiring significant build activity. In these cases, borrowers often explore development finance or bridging products specifically designed for heavier refurbishment, sometimes with staged drawdowns rather than a single advance.
An advisor will typically ask about the scope of works, timescales, budgets, contractor details, and planning/building regulation position where relevant.
Are bridging loans regulated or unregulated, and how is that decided for a specific case?
Some bridging loans fall under FCA mortgage regulation and some do not. In simple terms, a loan is more likely to be a regulated mortgage contract if it’s secured on property that is (or is intended to be) occupied by the borrower or a close family member as their home.
For property investment, development, or commercial use, bridging is often described as “unregulated”, but the correct classification depends on the facts of the case, especially intended occupancy and how the property will be used.
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Bridging loan guides & resources
The latest bridging loan resources from the Squared Money team.