Finance that moves at the speed of your deal
A bridging loan is short-term secured finance, typically lasting 3 to 18 months. Unlike traditional mortgages, there are no monthly repayments, instead, interest is either rolled up into the loan or serviced monthly, and the full balance is repaid when you sell the property or transition to long-term funding.
This makes bridging finance particularly effective for property investors, developers, and landlords who need to act quickly on opportunities without waiting for conventional mortgage timelines.
Common use cases
- Auction purchases with tight completion deadlines
- Property refurbishment, conversion, or development
- Buy-to-let and HMO acquisitions
- Chain-break scenarios, buy before you sell
- Commercial and semi-commercial property purchases
- Land acquisition with or without planning
- Refinancing to release equity quickly
How it works in practice
£150,000
Property value
£50,000
Deposit (33%)
£100,000
Bridging loan
6–12 months
Typical term
A developer purchases a £150,000 property to renovate and sell. They contribute £50,000 and bridge the remaining £100,000. Once the property sells or long-term finance is arranged, the bridging loan is repaid in full.
Key benefits
Funding in days, not months
Bridging loans can complete in as little as 5–10 working days, ideal for auction purchases and time-sensitive opportunities.
No monthly repayments
Interest can be rolled into the loan and repaid at exit, so you make no payments until the loan is settled.
Flexible security options
Secured against residential, commercial, semi-commercial, or mixed-use property. Multiple security types accepted.
All credit profiles considered
Lenders focus on the property value and your exit strategy rather than credit history alone.
Up to 80% LTV
Borrow up to 80% of the property value, with some lenders offering 100% LTV where additional security is available.
No early exit fees
Most bridging loans carry no early repayment penalties, you only pay for the time you use the facility.
Last changed: 18 December 2025
Next decision: 18 June 2026
What this means for business borrowing →Important: A bridging loan is secured against property. You should carefully consider your ability to repay and your exit strategy before proceeding. Failure to meet repayment terms could result in the repossession of your property. For a loan to be classified as "commercial," at least 40% of the property or land must be used for commercial purposes.
Related finance options
Useful resources
Related at Funding Flow: auction finance, commercial mortgages, bridging loan calculator.
Official references: Bank of England base rate.
Estimate your monthly cost
Get an indicative quote in seconds. No sign-up required.
Bridging loan calculator
Estimate interest costs and full transaction costs on a bridging loan.
Illustrative only, not a quote. £50,000 to £10,000,000.
Calculations are illustrative only. Actual rates, terms and fees are deal-dependent and vary by lender, business profile, and security. Speak to your broker for a tailored quote.
Frequently asked questions
Not sure which product is right?
Ask Flo, our AI finance assistant can guide you through your options.