Mortgage guide
Residential property bridging finance
Bridging finance is widely used within the specialist residential sector where a standard mortgage is unsuitable due to time pressure, property condition, or transitional circumstances.
- Published
- 13 Apr 2026
- Last reviewed
- 11 Sep 2026
- Reading time
- 2 min
Residential property bridging finance
Bridging finance is widely used within the specialist residential sector where a standard mortgage is unsuitable due to time pressure, property condition, or transitional circumstances. We offer auction bridging loans, home loan bridging finance, or bridging loans for derelict or un-mortgageable properties, and are designed to facilitate rapid completion and short-term stabilisation prior to a longer-term exit.
Typical scenarios include
- Auction bridging loan products to complete within a 28-day deadline, where mortgage timescales are unworkable
- Purchasing vacant, derelict, or un-mortgageable residential property, including homes without a kitchen or bathroom, those in disrepair, or properties failing lender habitability criteria
- Using home loan bridging finance to fund refurbishment, structural works, or modernisation before refinancing onto a residential or buy-to-let mortgage
- Bridging a broken or delayed property chain, allowing a purchase to proceed while an onward sale completes
- Short-term funding to enable a residential property to be marketed and sold at the right time, rather than under forced-sale conditions
In these situations, bridging loans provide the speed, flexibility, and certainty of funds required to secure or stabilise residential property where traditional mortgage finance cannot be deployed immediately.
Bridging calculator
Estimate the gross loan against property value before interest, fees and retained amounts.
Bridging Loan Criteria
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Criteria | Detail |
|---|---|
| Borrowers | Personal, limited company (Ltd co), LLP and offshore trusts, depending on the lender |
| Repayment type | Interest only or repayment |
| Term | Short term. The maximum term varies by lender; in our experience the minimum term is usually 1 month, and 3 months with some lenders |
| Experience | Not always required; it depends on the lender and the exit |
| Max applicants | Varies by lender |
| Valuation types | Automated valuation (AVM), Market Value 1 (MV1) yield based, market value (MV), 180-day or 90-day value, depending on the lender and how it labels the valuation basis |
| Regulated and unregulated | Yes, both: regulated where the borrower or a close family member lives, or will live, in the property |
| Credit searched | Usually, depending on the lender |
| Credit scored | Varies by lender; the decision rests mainly on the property and the exit |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Loan to value | Rate |
|---|---|
| 65% LTV | 0.62% per month (2% lender fee) |
| 75% LTV | 0.72% per month (2% lender fee) |
| 85% LTV | 0.9% per month (2% lender fee) |
For context, these are the wider product terms covered by this guide. Availability and eligibility depend on your circumstances and the lender.
| Feature | Detail |
|---|---|
| Additional Security | 100%+ |
| Residential | 90% |
| Commercial | 75% |
| Land | 70% |
Related case studies
Frequently asked questions
Can I get 100% bridging finance?
A bridge can sometimes fund 100% of a purchase price with additional security, or on a discounted purchase where the lender accepts a higher market valuation. The total debt must still fit the lender’s loan-to-value limits, and fees or retained interest can leave a cash contribution to pay.
What is closed bridging finance?
Closed bridging finance is a short-term bridging loan where the exit strategy is confirmed and time-defined from the outset. Repayment is tied to a known event, such as an exchanged property sale or approved refinance, which reduces lender risk and often results in lower interest rates than open bridging.
How much does bridging finance cost?
Bridging finance typically costs more than a mortgage and is priced monthly, not annually. Expect interest of around 0.6% to 1.5% per month, plus arrangement fees (often 1-2%), valuation fees, and legal costs. Total cost depends on loan length, risk, and structure.
Can I let a property on a bridging loan?
Some bridging lenders allow a property to be let during the term, others do not; letting is usually part of preparing for a buy to let refinance. The bridge agreement sets out what is permitted.
Can I get a bridging loan on an inherited property?
Yes, once the grant has been issued. In England and Wales, HM Land Registry will not register a disposition such as a charge by an executor before probate, or by an administrator before letters of administration; Scotland and Northern Ireland have their own registers, and there the executors also need confirmation or the grant first. The loan can pay Inheritance Tax still owed on the property, settle estate debts, fund work before a sale or let one beneficiary buy out the others, and it is repaid on sale or by refinancing onto a mortgage. A bridging loan to an individual secured on a house is normally a regulated mortgage contract, unless it is taken for a business purpose and no borrower or close relative will live there.
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