What a bridge is for
A bridging loan is short-term finance secured on property, usually for between a few months and two years. It is designed to bridge a gap: buying a property before a sale completes, securing an auction purchase, or funding works before refinancing onto a longer-term mortgage.
The exit is everything
Bridging lenders focus heavily on how the loan will be repaid. The most common exits are the sale of the property, refinance onto a commercial or buy-to-let mortgage, or the sale of another asset. Lenders will test that exit, so evidence of comparable sales or an agreement in principle on refinance helps.
How it is priced
Bridging is usually priced monthly rather than annually, and there are arrangement, valuation, legal and sometimes exit fees on top. Interest can be serviced monthly, rolled up or retained from the advance. Always compare the total cost over the realistic term, not just the monthly rate.
Common uses
- Auction purchases with a 28-day completion deadline
- Buying below market value where speed matters
- Funding refurbishment before refinance
- Releasing equity to settle a tax bill or other urgent liability
Risks to weigh
If the exit is delayed, costs mount quickly and the property is at risk. Build contingency into your timeline and make sure your plan does not rely on a single best-case outcome.
Related service: Business loans, invoice, asset and bridging finance
This guide is general information and not financial advice. B2B Loans UK acts as an introducer only. All finance is subject to status, affordability and lender criteria.