Bridging Loans & Finance

Bridging Finance helps you buy property fast, fund renovations, or unlock tied-up capital while you arrange long-term finance. Perfect for auctions, urgent purchases, or bridging cash flow gaps between buying and refinancing or selling.

WHAT IS REQUIRED

Full Property Details

Purchase Price and Current Market Value

Intended Use and Exit Plan

Borrower information

WHY CHOOSE IT?

Rapid Access to Funds

Greater Flexibility Than Traditional Mortgages

Ideal Short-Term Solution to Bridge Cash Flow Gaps

Approval Based on Property Value, Not Just Personal or Business Credit

Fast, flexible funding for time-sensitive property deals.

Bridging Finance is a short-term lending solution designed to help you complete a property purchase quickly - often within days or weeks - while you arrange long-term finance or prepare for resale. Whether you're buying at auction, securing a quick-turnaround investment, or unlocking capital tied up in property, a bridging loan can give you the speed and flexibility you need.

Need funding for construction or renovation works? Learn more about Development Finance.

How does Bridging Finance work?

Bridging Finance is typically arranged for a short period (usually 3 to 12 months), allowing you to complete property transactions quickly, without having to wait for traditional bank funding. The loan is repaid when longer-term finance is secured or when the property is sold.

The lender will issue you with a decision in principle following receipt of initial key details.
Assuming you are happy with the terms, a valuation is instructed.
Once the valuation is received and figures confirmed, the deal is formally underwritten with the lender providing a full offer.
Legals are instructed and taken through to completion.
You repay the loan and interest within the term, usually by either refinancing with a long term mortgage or selling the property.

Here are some of the costs to consider:

Monthly interest: 0.6% to 1.5%
Arrangement fee: 1–2%
Valuation and legal fees
Exit fees: sometimes applicable

Is Bridging Finance suitable for you?

Bridging Finance is ideal solution for a number of scenarios, and could be an ideal fit if you:

Need funds quickly for a property purchase
Are buying at auction
Want to avoid delays with traditional lending
Have a clear exit strategy (sale, refinance, or income)
Are buying a property which requires some cosmetic works before letting it out
Have equity available and need funding for urgent business needs
Need to release funds awaiting the sale of a property

Here is an example:
An investor purchases a derelict house at auction for £150,000. They take out a bridging loan to complete the purchase and cover initial renovation costs. Once the property is converted to an HMO and fully let, they refinance onto a long-term buy-to-let mortgage to repay the loan.

What's required for an application?

Property details and current market value
Purchase price and intended use
Exit strategy (e.g. refinance or sale)
Basic personal financial information (assets, liabilities, creditworthiness)

FAQs

What is the most import an thing to consider when being approved for a Bridging Loan?

Your exit. The first thing lenders will want to know is how you intend to repay the loan and how credible that plan is

How much can I get?

There is no maximum nominal amount but it depends on the LTV (loan to value). For a 1st charge we can get up to 75% LTV and for a 2nd charge up to 65% LTV; all depending on the nature and location of the property/asset being offered as security.

How long can I have a Bridging Loan for?

Most bridging loans are short-term, typically 1 to 12 months, but some lenders may offer terms up to 18 or even 24 months depending on your project and exit plan. You would need to have a strong reason to borrow on a bridging loan for longer than 12 months, as heavy development is more suited to development projects.

Can I get one on an unmortgageable property?

Yes, that’s exactly what Bridging Finance is designed for. You can use the loan to bring the property up to mortgageable condition, then refinance with long-term funding once the issues preventing a standard mortgage have been resolved.

How fast can it be arranged?

It can be done in 48 hours but at a cost, so we would usually advise 1–4 weeks, depending on the deal and your solicitor’s readiness. Some lenders may take a little longer, so it’s important you express any hard deadlines with your chosen lender to ensure they have the capabilities to get this over the line.

Can I get one if I have adverse credit?

Yes, bridging lenders focus more on the asset and exit strategy than your credit score. While poor credit may affect the terms or interest rate, it doesn’t automatically disqualify you.

What will the cost be?

Interest is expressed monthly and is from 0.6%-1.5% per month. Lower rates are for loans with a low LTV, on a property/asset that can be easily resold in the event of foreclosure, a strong-credit borrower and a clear exit.

What are the fees to arrange a loan?

If you choose to use us to arrange your finance you will be charged a fee of typically 1%. Additionally there may be a lender fee (usually 1-2%) to be paid and it is usual in this market that the borrower also pays the lender’s legal and valuation fees.

Why should I use a broker to arrange a Bridging Loan?

You can do all this yourself but with 100+ lenders out there, we can more quickly get you to the best rate and also ensure you are borrowing from a reputable, established lender. We will also guide you through the application process and ensure your application is presented to the lender in a manner than makes it most likely to be accepted at the lowest rate.

What is the maximum LTV available for a second charge bridging loan?

Probably no more than 70% LTV is available but it depends on the asset and the exit strategy

Can I use it for non-property purposes?

In some cases, yes - such as urgent working capital needs - but you’ll still need a strong repayment plan.

What types of properties can be funded?

Residential, commercial, mixed-use, or land with planning.

Can I get a bridging loan if I have poor credit?

Yes, bridging lenders focus more on the asset and exit strategy than your credit score. While poor credit may affect the terms or interest rate, it doesn’t automatically disqualify you.

Do I need to make monthly repayments?

Not always. Many bridging loans are "rolled up", meaning interest is added to the loan and repaid at the end, along with the capital, or “retained”, meaning deducted from the gross loan. Both of these options can help cashflow during the loan term.

Can I get 100% bridging finance?

In some cases, yes—if you have additional security (like another property) to offer. Most lenders will provide up to 70–75% of the property’s value, but 100% is possible with sufficient collateral.

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Choice Loans is a broker, not a lender. We will connect you with a lender suitable for your needs or, if appropriate, a specialist broker. We do not charge you an upfront fee but, if your application is successful, a broker commission may be charged.