Residential bridging loans

The classification is determined by how the security property is used, not by the borrower's choice. A bridging loan is regulated when it is secured on a property that you or a close family member occupies, or intends to occupy, as a main residence. Unregulated bridging applies where the security is an investment property, commercial premises, or land that you will not occupy as your home.

The distinction matters because regulated loans come with specific consumer protections, including conduct rules on how the product is sold, a more formal affordability assessment, and access to the Financial Ombudsman Service. The lender panel for regulated products is more restricted. If you are unsure which category your scenario falls into, a broker will confirm the classification before recommending a lender. The guide to regulated vs unregulated bridging covers the full picture.

Most bridging lenders will typically consider up to 70 to 75 percent combined LTV on a standard property with a credible exit strategy, though some will go higher in specific circumstances. These are illustrative ranges only.

The amount that actually reaches your account, the net advance, will be lower than the headline gross loan figure once retained interest and the arrangement fee are deducted upfront. If your transaction requires a minimum amount to complete, you need to gross up from that figure. The bridging cost calculator lets you model this before you speak to a broker.

On a straightforward case where the property is standard construction, the title is clean, documents are ready, and the exit is clearly evidenced, some cases complete in two to three weeks. More complex cases commonly take four to six weeks or longer.

The most reliable way to influence speed is to prepare your documents before you submit an enquiry. The document checklist covers what lenders typically ask for. The real-world bridging timeline guide covers where cases most commonly stall.

It depends on the nature and recency of the adverse credit, the strength of the exit strategy, and which lenders are prepared to consider the case. Some lenders will consider cases with historic missed payments, defaults, or even a satisfied county court judgment where the exit is clearly credible.

Recent severe adverse credit, including unsatisfied county court judgments, active bankruptcy, or a current individual voluntary arrangement, significantly narrows the lender panel and will affect both availability and pricing. A broker who knows the specialist end of the regulated bridging market is the most practical starting point.

Interest continues to accrue for as long as the loan remains outstanding, so any delay to the exit increases the total cost. If your planned term is coming to an end and the sale has not yet completed, the main options are a formal extension, refinancing onto a new bridging product, or a short rollover period if the sale is genuinely imminent.

The most important thing is not to wait until the term has expired before raising the situation with your broker. Options narrow significantly once the loan is already in arrears. The extension and refinance readiness checklist helps you understand what each route requires.

Downsizing is one of the more straightforward regulated bridging scenarios in terms of exit credibility. Because the exit is a sale of your existing home rather than a refinance onto a new mortgage, lenders do not require evidence of ongoing income in the same way a mortgage lender would.

The main considerations are the timeline and ensuring your existing home can be sold within the loan term at a price that covers the bridging repayment. A broker can help you structure the loan term and assess whether the proposed exit is credible before committing. The downsizing bridging loans guide covers the full process.

Yes, and this is the most common residential bridging scenario. The bridging loan is typically structured as a first charge on the new property being purchased, leaving the existing mortgage undisturbed, or as a second charge on the existing home using available equity.

In both structures, the key question is the exit: when and how will the bridging loan be repaid, and what evidence supports that plan. The guide to first charge vs second charge bridging explains how the charge structure affects both the lender panel and the cost.

Retained interest means the full charge is deducted upfront from the gross loan. No monthly payments are made during the term. This is the most common structure for residential bridging. The trade-off is that the net advance you receive is lower than the gross loan because interest and fees are taken at the outset.

Rolled-up interest accrues monthly and is added to the loan balance, with the full amount repaid at the end of the term. Serviced interest means monthly payments are made throughout, keeping the final repayment lower. A broker will recommend the structure that fits your circumstances. The guide to rolled-up, retained, and serviced interest explains each with illustrative cost comparisons.

Yes. Most chain break and downsizing cases involve a borrower who already has a mortgage on their existing home. The bridging loan can be structured as a first charge on the new property being purchased, or as a second charge on the existing home using available equity, without disturbing the existing mortgage terms.

Having a credible, time-bound exit plan is more important than whether you currently have a mortgage. The guide to first charge vs second charge bridging covers how these two structures compare and which applies in different scenarios.