A short-term loan secured against property, used to cover a funding gap while a longer-term arrangement is put in place. Unlike a mortgage, which is repaid gradually over many years, a bridging loan is repaid in full at the end of the term, typically from a property sale, a remortgage, or another defined event. Terms commonly run from one month to eighteen months.

Because bridging finance is asset-backed rather than income-led, lenders focus primarily on the value of the security property and the credibility of the repayment plan, rather than the borrower's salary or employment status. This makes it accessible in situations where a standard mortgage cannot move quickly enough, where the property does not meet normal lending criteria, or where the ownership structure is too complex for conventional underwriting.

A closed bridging loan has a confirmed, fixed repayment date, typically because contracts have already exchanged on a property sale and the completion date is legally certain. Because the exit is confirmed rather than anticipated, closed facilities carry less lender risk and may attract more favourable terms. They are less common than open facilities, as most borrowers cannot guarantee the exact repayment date at the point of application.

Combined LTV applies where a bridging loan is secured against a property that already has an existing mortgage on it. The combined LTV is calculated by adding the outstanding mortgage balance to the proposed bridging loan and expressing the total as a percentage of the property's current value. For example, if a property is worth £500,000, the existing mortgage is £200,000, and the proposed bridging loan is £100,000, the combined LTV is 60 percent. Lenders assess the combined position rather than the bridging loan in isolation. All figures are illustrative.

Day one LTV is the loan-to-value ratio calculated at completion, based on the property's current market value rather than its projected value after works. On refurbishment and development cases, lenders distinguish between the day one LTV (based on current value) and the end LTV (based on GDV once works are complete). Lenders typically set tighter limits on the day one LTV to protect their position during the works period, when the security may be in a reduced or uninhabitable state.

A first charge is a legal claim registered at HM Land Registry that gives a lender first priority over proceeds if a property is sold or repossessed. Where a borrower has no existing mortgage on a property, any bridging loan secured against it will be first charge. Because first charge lenders are repaid before all others in an enforcement scenario, they carry less risk, which is why first charge bridging typically attracts lower rates than second charge facilities on the same security.

The gross loan is the total facility agreed with the lender before any deductions are made. It is the headline figure used for LTV calculations and includes the capital being borrowed, any retained or rolled-up interest, and arrangement fees that are added to the balance. The gross loan is always larger than the amount the borrower actually receives, sometimes significantly so on longer terms with a retained interest structure.

Loan-to-value expresses the size of the loan as a percentage of the property's current market value. If a property is worth £400,000 and the gross bridging loan is £280,000, the LTV is 70 percent. Lenders set maximum LTV thresholds that vary by property type, security quality, borrower profile, and exit strength. Most residential bridging lenders will consider up to 70 to 75 percent LTV on a standard property with a credible exit. Commercial, non-standard, and development security typically attracts lower thresholds. All figures are illustrative.

The net advance is the amount the borrower actually receives at completion, after all upfront deductions are made from the gross loan. On a retained interest structure, the lender deducts the full interest charge before releasing funds, so a £300,000 gross loan at 0.7% per month for six months would have approximately £12,600 of interest retained, reducing the net advance before fees. Always confirm the net advance figure before committing to a facility, particularly where funds need to cover a specific purchase price. All figures are illustrative.

An open bridging loan has no fixed repayment date. The borrower has a defined exit strategy, such as a property sale or remortgage, but the exact date it will complete is not yet confirmed. Most bridging facilities are open, reflecting the reality that sale timelines and refinance processes can move. The lender sets a maximum term, and the loan is repaid whenever the exit event completes within that window. Open facilities typically carry a marginally higher rate than closed ones, reflecting the additional uncertainty.

A bridging loan is regulated when the security property is one that the borrower, or a close family member, occupies or intends to occupy as their main home. Regulated bridging falls under FCA rules, which require a formal assessment process, standardised product disclosure, and consumer protection standards. Borrowers on regulated facilities have access to the Financial Ombudsman Service. Most chain break, downsizing, and residential purchase bridging scenarios are regulated.

A retention is an amount withheld from the initial bridging advance, to be released at a later stage when a specific condition is met, typically confirmation that defined works have been completed on a refurbishment case. Retentions differ from staged drawdowns in that the withheld amount is part of an otherwise agreed facility rather than a separately scheduled tranche. Borrowers should account for the retained amount in their cashflow planning, as it will not be available on day one.

A second charge is a legal claim registered against a property that already has an existing first charge mortgage on it. The second charge lender sits behind the first charge lender in the repayment queue. In an enforcement scenario, the first charge lender is repaid in full before the second charge lender receives anything. This subordinate position carries greater risk, reflected in slightly higher rates. A second charge bridging loan allows a borrower to access equity in a mortgaged property without disturbing the existing mortgage arrangement.

A staged drawdown facility releases funds in tranches rather than as a single lump sum at completion. It is the standard structure for refurbishment and development bridging, where the full loan amount is not needed on day one and where releasing funds progressively against works milestones protects both lender and borrower. The initial drawdown covers acquisition or site costs; subsequent tranches are released as a monitoring surveyor confirms works progress. Interest accrues only on funds drawn at each stage, not on the full facility.

An unregulated bridging loan is secured against a property that is not the borrower's main home, such as an investment property, buy-to-let, commercial premises, or development land. The FCA conduct rules that govern regulated mortgages do not apply, though lenders and brokers remain subject to commercial law and their own professional obligations. The lender panel for unregulated bridging is typically broader and the underwriting process can be faster. Most commercial, development, auction, and investor bridging is unregulated.

The annual percentage rate of charge is a standardised measure of the total annual cost of a loan, expressed as a percentage, which allows comparison between products on a like-for-like basis. On regulated bridging loans, lenders are required to disclose the APRC. Because bridging loans are designed to be short-term, the APRC figure can appear very high compared to a standard mortgage, this reflects how annual percentage calculations interact with monthly-rate products, not that the product is expensive relative to its purpose. For comparing bridging facilities against each other, the total amount repayable over the expected term is a more practical measure.

A lender charge for setting up the bridging facility, typically calculated as a percentage of the gross loan, commonly 1 to 2 percent. It is usually either deducted from the advance at completion or added to the loan balance. On a £250,000 gross loan with a 1.5 percent arrangement fee, the fee is £3,750. Some lenders charge a flat fee; some charge no arrangement fee but offset this through a higher rate. Always factor arrangement fees into the total cost comparison rather than comparing headline rates alone. All figures are illustrative.

A charge payable when the bridging loan is redeemed. Not all lenders charge one, but where it applies it is typically calculated as a percentage of the gross loan, commonly 0.5 to 1 percent, payable from the sale proceeds or refinance funds at redemption. A lower headline rate with an exit fee may cost more overall than a slightly higher rate without one. Always identify whether an exit fee applies when comparing facilities.

Bridging transactions require solicitors on both sides: the borrower's solicitor and the lender's solicitor. The borrower pays both. The lender's legal fees cover the review of title, preparation and registration of the charge, and verification of the security. On straightforward residential cases, total legal costs on both sides commonly run to several thousand pounds. On commercial or complex transactions they can be significantly higher. Instructing a solicitor familiar with bridging timelines is important, legal delays are one of the most common causes of late completions.

Bridging loan interest is expressed as a monthly rate rather than an annual one. A rate of 0.75 percent per month means that for every £100,000 borrowed, the interest charge is £750 per month. Monthly rates across the market typically range from around 0.55 percent on straightforward regulated residential cases to over 1.25 percent on complex commercial or development facilities at higher LTV. These are illustrative ranges only. The monthly rate alone does not represent the total cost of borrowing, fees, interest structure, and term all affect the overall figure.

With a retained interest structure, the lender calculates the total interest charge for a defined number of months upfront and deducts it from the gross loan before releasing funds. No monthly payments are required, and interest does not compound because the full charge has already been applied at the outset. The borrower receives less on day one but has certainty about the total repayment figure from the start. Common on auction purchases and time-sensitive transactions. If the loan is repaid early, some lenders refund the unused portion of retained interest, though this varies by lender.

With a rolled-up interest structure, no monthly payments are made during the term. Interest is added to the outstanding loan balance each month, and the full amount, original capital plus all accrued interest, is repaid in a single payment at the end of the term. Because interest compounds onto the balance, the total repayment on a rolled-up facility is higher than on a retained or serviced structure for the same rate and term. Rolled-up interest suits borrowers with no cash flow available during the loan period, such as those carrying out development works.

With a serviced interest structure, the borrower makes monthly interest payments throughout the loan term, in the same way as a standard loan. Because interest does not accrue or compound onto the balance, the final repayment figure is lower than on a rolled-up facility for the same rate and term. Serviced interest suits borrowers who have income available during the bridging period and want to minimise total cost. Less common than rolled-up or retained structures, but available from a number of lenders, particularly on longer-term facilities.

The fee paid to commission an independent survey of the security property. The lender instructs the surveyor, usually from an approved panel, and the borrower pays the cost, which is non-refundable if the loan does not proceed. On a standard residential property, fees typically run to several hundred pounds. On commercial, development, or complex assets, valuations are more involved and considerably more expensive. Where a staged drawdown facility is used, a monitoring surveyor is also required throughout the works, adding further costs at each drawdown stage.

A specific financing route for property investors who acquire or refurbish a property using bridging finance and then refinance onto a buy-to-let mortgage once works are complete and the property is tenanted. The bridge funds the acquisition and any improvement works; once the property is in lettable condition and generating rental income, the investor refinances onto a BTL mortgage which redeems the bridging loan. One of the most common exit strategies for refurbishment bridging involving residential investment property.

A bridging loan defaults when the borrower fails to repay in full by the end of the agreed term and no extension has been granted. Default triggers an increased default interest rate, typically substantially higher than the standard rate, accruing from the point the term expired. Continued default, where there is no credible path to resolution, can ultimately lead to the lender seeking possession of the security property. Borrowers in difficulty should engage with their broker and lender early, as the range of options available narrows significantly as time passes.

No dedicated article, see bridging loan extensions and refinancing options.

A formal agreement with the existing lender to extend the loan term beyond its original end date, typically in one to three month increments. Extensions are available where the lender is satisfied the exit is progressing, the loan is not in arrears, and the overall case remains sound. They carry additional costs, usually a monthly extension fee or small arrangement fee, and continued interest accrual. Applying for an extension well before the term expires gives the borrower significantly more leverage and options than approaching it at the point of default.

The borrower's plan for repaying the bridging loan at the end of the term. It is the single most important element of any bridging application, lenders assess it before almost everything else, including credit history or income. A credible exit is specific, time-bound, and supported by evidence. Common exit routes are a property sale, a remortgage onto a longer-term mortgage, or the completion of a development project followed by sale or refinance.

What makes an exit strong is not intention but evidence. For a sale exit: a realistic asking price supported by recent comparable sales and confirmation the property is or will be actively marketed. For a remortgage exit: demonstrating that mortgage finance is genuinely accessible, ideally through an agreement in principle. Vague exits are the most common reason bridging applications are declined or result in difficulty at term end.

Refinancing a bridging loan means replacing an existing facility with a new one, either from the same lender or a different one, rather than redeeming it through a sale or long-term mortgage. Typically used where the original exit has been delayed and an extension is not available, or where the borrower's situation has changed in a way that makes a fresh facility more appropriate. Refinancing resets the term and accrues a new set of fees, so it carries a higher total cost than a straightforward redemption. A practical option when it prevents a forced sale or default.

A repayment plan that depends on refinancing the bridging loan onto a longer-term mortgage, typically a residential, buy-to-let, or commercial mortgage, when the loan term ends. Lenders want to know that mortgage finance is genuinely achievable before committing to the bridge. Where the property is uninhabitable at the point of bridging, the lender will assess whether it will meet mortgage lender standards by the time the bridge needs to be redeemed. A broker's assessment of mortgage eligibility, or an agreement in principle, significantly strengthens this exit proposition.

A repayment plan that depends on the proceeds from selling a property, the security property, another property in the borrower's portfolio, or a newly developed asset. The most common exit type in residential bridging, chain break, downsizing, and development scenarios. Lenders assess whether the proposed sale price is realistic based on current market evidence, how long comparable properties typically take to sell, and whether the property will be genuinely ready for market within the loan term. An overpriced property in a slow market is a weak exit regardless of the borrower's intention to sell.

The estimated market value of a property once all planned development or refurbishment works have been completed. The primary metric lenders use to assess development and heavy refurbishment bridging cases, determining how much can be borrowed relative to the finished asset rather than its current distressed or partially complete state. A lender may offer up to 65 to 70 percent of GDV on a development facility. GDV is assessed by an independent RICS valuer, not by the borrower or their agent. Optimistic GDV assumptions are one of the most common sources of difficulty on development projects. All figures are illustrative.

A house in multiple occupation is a property let to three or more unrelated tenants who share facilities such as a kitchen or bathroom. Bridging lenders consider HMO properties as security, and bridging is commonly used to acquire, refurbish, or convert properties to HMO use. HMO properties above a certain size threshold require a licence from the local authority. Exit strategies on HMO cases typically involve a sale to an investor buyer or a refinance onto a specialist HMO buy-to-let mortgage once the property is licensed and tenanted.

Land that has planning permission from the local planning authority to develop a specific scheme. Consent significantly affects the land's value and its attractiveness as bridging security, lenders treat consented land more favourably than unconsented land because the development potential is confirmed rather than speculative. Full planning permission is the most robust form of consent; outline planning permission (establishing the principle of development without fixing all details) is also accepted by most lenders at slightly more conservative LTV thresholds.

Land with no confirmed development consent, sometimes called bare land. Its value as bridging security is speculative rather than evidenced, resulting in lower LTV thresholds from a smaller panel of specialist lenders. Bridging against unconsented land is most commonly used to fund the planning process, holding the site while an application is submitted and determined. The exit is typically a sale of the consented land once planning is granted, or a development project thereafter.

A formal written confirmation from the local planning authority that a proposed development or change of use is lawful, either because it benefits from permitted development rights or because an existing use is immune from enforcement. An LDC is not planning permission, but it provides legally defensible confirmation that the development can proceed without one. For bridging applications involving permitted development projects, providing an LDC significantly strengthens exit credibility and lender confidence in the scheme.

A property containing both residential and commercial elements, for example, a ground-floor retail unit with residential flats above. These properties fall between residential and commercial lending criteria, and mainstream lenders on either side typically cannot accommodate them. Specialist bridging lenders consider mixed-use security on a blended basis, accounting for both elements. Available LTV is typically lower than on pure residential security. Common scenarios include the acquisition of vacant mixed-use buildings for conversion or refurbishment, and bridging while a specialist mortgage is arranged.

An independent RICS-qualified professional appointed by the lender on staged drawdown facilities to verify that works are progressing as planned before each tranche of funds is released. The surveyor visits the site, assesses works completed against the agreed schedule and costings, and produces a report confirming whether the next drawdown can be authorised. The borrower pays the monitoring surveyor's fees, which are an ongoing cost throughout the works period on development and heavy refurbishment facilities.

A multi-unit freehold block is a building containing multiple self-contained residential units, typically flats, held under a single freehold title rather than divided into individual leasehold titles. MUFBs are a common investment vehicle for property investors and are considered as bridging security by specialist lenders. Underwriting focuses on the aggregate value of the units, occupancy level, and exit, typically a refinance onto a specialist investment mortgage or a sale of the whole block or individual units following separation of title.

Any building method that falls outside the brick-and-tile or concrete-frame structures that mainstream mortgage lenders consider standard. Examples include timber frame, steel frame, prefabricated concrete (PRC), thatched roofs, and various post-war construction types. Considered by specialist bridging lenders, typically at lower LTV thresholds and with a smaller lender panel. The type and condition of the construction significantly affects both the valuation and lender appetite. Being clear about construction type before approaching lenders avoids wasted time with those who will not consider it.

Permitted development rights allow certain types of building work and change of use without requiring a full planning application. Common routes include converting offices to residential use under Class MA, adding storeys, and certain barn conversions. Bridging lenders treat formally confirmed PD rights more positively than a live planning application, because the consent route is more predictable. However, lenders distinguish carefully between PD that has been confirmed through a Lawful Development Certificate and PD the borrower intends to rely on but has not yet confirmed. Unconfirmed PD is treated with similar caution to an unapproved planning application.

The property over which the lender registers a legal charge as the condition of providing a bridging loan, the asset the lender can pursue if the borrower fails to repay. The security property can be the one being purchased with the bridging funds, a property already owned by the borrower, or in a cross-charge structure, a different property from the one being transacted. The type, condition, location, and title of the security property all directly affect the available LTV, the rate, and the lender panel willing to consider the case.

A property is considered uninhabitable when it lacks the basic facilities required for occupation, typically a functioning kitchen, bathroom, working utilities, or structural integrity. Mainstream mortgage lenders will not lend against uninhabitable property, making bridging the standard route for acquiring and improving such assets. Bridging lenders consider uninhabitable property as security, though at lower LTV limits reflecting the higher risk during the period when the asset has limited or no market value in its current state.

A commercial building with no current tenants or trading occupants. Mainstream commercial mortgage lenders typically require an income-producing tenancy to support lending, a vacant building generates no rental income and cannot pass a standard debt service assessment. Bridging finance is frequently used to acquire vacant commercial property, fund refurbishment or conversion, and hold the asset until it is either let and refinanced or sold.

A facility where the primary underwriting focus is the value of the security asset and the exit, rather than the borrower's income or creditworthiness. Bridging is inherently more asset-focused than mainstream mortgage lending, but the term is particularly used in the context of time-sensitive commercial or investment opportunities, off-market deals, distressed asset sales, or situations where speed of execution is the critical factor. Lenders who operate in this space move quickly because they are underwriting the asset rather than running a full income and affordability process.

Bridging used to fund a property purchase made at auction. At a traditional property auction, the winning bidder exchanges contracts unconditionally the moment the hammer falls and must complete within 28 days. Standard mortgage lenders cannot reliably meet this timeline. Bridging lenders can, provided the application is well-prepared and begins immediately. Buying at auction is unconditional: there is no "subject to survey" or "subject to finance" provision. If finance does not complete within 28 days, the buyer forfeits the 10% deposit and can face further liability if the property resells below the original price. All preparation should be completed before bidding, not after.

A chain break bridging loan allows a homeowner to buy a new property before their existing one has sold, removing their dependency on the sale completing first. The borrower completes the new purchase using bridging finance and repays the loan when their existing home sells. The chain that was blocking the transaction is broken. Chain break bridging is almost always regulated, with the saleability of the existing home, not the borrower's income, as the primary lender assessment.

A structure where a borrower uses equity in a property they already own, property A, as security for a bridging loan to fund the purchase of a different property, property B. Rather than securing the loan against the property being purchased, the charge is registered against the existing asset. The new property is acquired without any charge against it at completion. Used by investors who have significant equity in their existing portfolio and want to acquire a new asset cleanly, or where the target property is unsuitable as security in its own right.

No dedicated article, a specialist broker can advise on this structure.

A regulated bridging loan used by a homeowner who wants to move to a smaller property before their existing home has sold. The bridging loan funds the new purchase; the borrower moves in and then sells the existing property without the pressure of a completed chain. Because the exit depends on a sale rather than ongoing income, lenders do not require income evidence in the same way a mortgage lender would. Particularly common for retired borrowers with significant equity in a larger home but limited employment income.

Sharia-compliant bridging finance provides an alternative to conventional interest-bearing bridging loans for borrowers who observe Islamic finance principles, which prohibit the payment or receipt of interest (riba). Sharia-compliant facilities use structures such as murabaha (cost-plus financing) or ijara (lease-based financing) to achieve an economically equivalent outcome without interest. Products are certified by a Sharia supervisory board and are available from a small number of specialist lenders in the UK market.

A short-term loan secured against a property forming part of a deceased person's estate, used to release funds to the beneficiaries or cover estate costs before the property has been sold. Probate can be a lengthy process, and the sale of an estate property may take time following grant of probate. Bridging provides liquidity in the interim, allowing inheritance tax liabilities, estate administration costs, or beneficiary distributions to be settled without waiting for the sale. The exit is the sale of the estate property.

Stamp duty land tax (SDLT) is payable on most property purchases in England and Northern Ireland within 14 days of completion. In some cases, particularly where a purchase completes faster than anticipated, or where funds are temporarily committed elsewhere, a borrower may not have the SDLT amount immediately accessible. Stamp duty bridging provides short-term funds to cover this liability, repaid once the borrower's own funds are available. A niche but practical use of bridging in time-pressured transactions.

A short-term loan used to cover the VAT liability that arises on certain commercial property purchases. Where a commercial property seller has opted to tax the property, the buyer must pay 20% VAT on the purchase price at completion. The buyer can reclaim this VAT from HMRC, but the reclaim process typically takes four to twelve weeks, during which time the buyer must fund the liability themselves. VAT bridging covers this gap; the loan is repaid once HMRC processes the reclaim. One of the more overlooked costs in commercial property transactions.

Adverse credit refers to negative markers on a borrower's credit file, such as missed payments, defaults, county court judgments (CCJs), individual voluntary arrangements (IVAs), or previous bankruptcy. Mainstream mortgage lenders typically decline applicants with recent or significant adverse credit. Bridging lenders take a more nuanced view: because the loan is secured against an asset and the primary repayment source is a sale or refinance rather than ongoing income, credit history carries less weight. The nature, age, and severity of the adverse matters, a satisfied CCJ from three years ago is treated very differently from an active IVA.

A limited company can borrow on a bridging basis in its own name, secured against property the company owns or is acquiring. Bridging lenders consider limited company borrowers routinely, particularly in commercial and investment scenarios. The underwriting approach is broadly similar to individual borrowing, focused on the asset, the exit, and the overall case, with additional review of the company's structure, its directors, and any guarantees required. Where the company is newly incorporated, lenders place greater weight on the directors' personal backgrounds and the quality of the security and exit.

A borrower who is not a UK citizen or permanent resident, or who is resident outside the UK, seeking to purchase or borrow against UK property. Mainstream UK lenders typically restrict or decline such applications. A specialist panel of bridging lenders does consider overseas buyers and foreign nationals, though criteria, documentation requirements, and available LTV vary significantly by nationality, residency status, and the jurisdiction of the borrower's income or assets. Anti-money laundering checks and source of funds documentation requirements are typically more extensive for overseas applicants.

A borrower whose primary income is pension income, investment income, or drawdowns from accumulated assets rather than employment earnings. Standard mortgage lenders often apply maximum age limits or require employment income, making conventional mortgage borrowing difficult for older borrowers. Bridging lenders are generally more accommodating, particularly where the exit is a property sale rather than a remortgage, in a pure sale exit, ongoing income is not required to service the loan. Downsizing bridges and probate-related borrowing are among the most common bridging scenarios for this group.

A limited company set up specifically to hold a property asset or portfolio, rather than for general trading purposes. Property investors increasingly use SPVs for tax planning and liability separation. Bridging lenders consider SPV applications and in many cases prefer them, as the separation of the asset from the individual's personal finances simplifies the security and recovery position. The directors and shareholders of the SPV will typically be required to provide personal guarantees. Lenders will review the SPV's articles of association to confirm it is incorporated to hold property and borrow against it.

A conditional indication from a lender that they would be willing to offer a facility, subject to full underwriting, valuation, and legal review. An AIP confirms the lender is interested in the case at the proposed figures and gives the borrower a reasonable basis for proceeding with preparations. It is not a formal offer and carries no binding commitment. On a remortgage exit strategy, having an AIP from a mortgage lender significantly strengthens the credibility of the exit in the eyes of the bridging lender.

No dedicated article, a specialist broker will manage this process.

A formal legal agreement in which a second charge lender agrees to subordinate their security interest to allow a new first charge to be registered, or an existing first charge to be replaced, while the second charge remains in place. It arises most commonly when a borrower wants to remortgage their main mortgage while a second charge bridging loan is still outstanding. Obtaining a deed of postponement is routine in most cases, but it requires the cooperation of the second charge lender and adds a step, and potentially time, to the remortgage process.

No dedicated article, a specialist broker or solicitor can advise on this process.

A legally binding document issued by the lender once full underwriting, valuation, and legal review have been completed, setting out the final terms on which the lender is prepared to lend. On a regulated bridging loan, the formal offer must meet specific FCA disclosure requirements. The borrower and their solicitor review the offer before proceeding to legal completion. Any material change in the borrower's circumstances, the property, or the exit strategy between application and offer can affect the final terms or result in the offer being withdrawn.

Distinct from an agreement in principle, which is conditional and non-binding.

The government body responsible for registering the ownership of land and property in England and Wales, and recording all legal charges, restrictions, and other interests affecting a title. When a bridging loan completes, the lender's solicitor registers the legal charge at Land Registry, making it part of the official title record. When the loan is redeemed, the charge removal is filed and the title reverts to its unencumbered state. Land Registry searches are a standard part of legal due diligence on every bridging application.

A non-binding written summary of the loan parameters a lender is prepared to offer in principle, before full underwriting has been completed. They typically set out the proposed gross loan, rate, arrangement fee, term, and any key conditions. Indicative terms allow the borrower and their broker to compare competing offers on a like-for-like basis before committing to a specific lender's full application process. They should not be confused with a formal offer, the final terms may differ once valuation, legal review, and full underwriting have been completed.

No dedicated article, a specialist broker will manage the comparison of indicative terms.

An introducer is a business or individual that connects borrowers with lenders or brokers, without itself arranging or advising on the loan. Introducers are regulated by the FCA where they introduce regulated mortgage business and must comply with relevant conduct rules, but they do not make lending decisions, provide financial advice, or handle the loan application directly. Squared Money operates as an introducer: it connects borrowers with specialist bridging brokers but does not provide advice, arrange loans, or quote rates.

A formal security interest registered at HM Land Registry that gives a lender the legal right to pursue a property if a borrower fails to repay a loan secured against it. It is the mechanism by which a bridging lender secures its position. A first legal charge gives the lender first priority in a repayment queue; a second legal charge sits behind an existing first charge. The registration of a legal charge is carried out by solicitors at completion, and its removal, following redemption, is filed once the loan has been repaid in full.

Redemption is the act of repaying a bridging loan in full, bringing the facility to a close. It occurs when the exit event completes, sale proceeds are received, refinance mortgage funds are released, or the development is sold. At redemption, the borrower repays the outstanding loan balance, all accrued interest, any exit fee, and any other outstanding costs in a single payment. The lender's solicitor then files the removal of the legal charge at HM Land Registry, releasing the property from the bridging security.

A formal document issued by the lender setting out the exact amount required to repay the bridging loan in full on a specific date. It includes the outstanding principal balance, all accrued interest to the proposed redemption date, any exit fee, and any other outstanding charges. Requested by the borrower's solicitor in the days before a sale or refinance completes, so that the correct amount can be sent to the lender from proceeds on completion day. The figure changes daily as interest accrues, so the statement is issued with a specific validity date.

An intermediary with specific expertise in the bridging finance market who acts on behalf of a borrower to identify suitable lenders, structure the application, and manage the process through to completion. A specialist bridging broker will have direct relationships with lenders across the market, including those who do not accept direct applications, and will understand which lenders have current appetite for specific property types, LTV positions, exit strategies, and borrower profiles. In a market where criteria change frequently and lender appetite varies considerably by case type, this expertise has significant practical value.