---
title: "What is a bridging loan?"
description: "The purpose of bridging finance, who can borrow and how it differs from a mortgage."
url: "https://mortgagelane.com/guides/bridging-loan-guide/what-is-a-bridging-loan"
site: "Mortgage Lane"
collection: "guides"
date: "2026-04-13"
author: "Joseph Lane"
category: "Mortgage guide"
reviewed: "2026-09-11"
reading_time: "2 min"
byline: "Joseph Lane"
author_credentials: "CeMAP · FCA authorised firm"
language: "en-GB"
robots: "index,follow"
---

# What is a bridging loan?

The purpose of bridging finance, who can borrow and how it differs from a mortgage.

The purpose of bridging finance, who can borrow and how it differs from a mortgage.

[Bridging loan](https://mortgagelane.com/definitions?term=bridging-loan)

Bridging finance

A short-term loan secured against property or land to cover a funding gap until an agreed repayment event, such as a sale or refinance.

[Read the full definition of Bridging loan](https://mortgagelane.com/definitions?term=bridging-loan)

Back to overview

[Bridging Loan Guide](https://mortgagelane.com/guides/bridging-loan-guide)

Related definitions

[Bridging loan](https://mortgagelane.com/definitions#def-bridging-loan)

## What is a bridging loan?

### What is a bridging loan?

**A bridging loan is deal-led and exit-focused, not income-led, which is the fundamental difference between bridging finance and a mortgage.** A mortgage assesses long-term affordability from income, expenditure, and stress testing over many years. A bridging lender instead assesses how the loan will be repaid: the value of the security property, the loan-to-value (LTV), and whether the exit strategy is realistic within the loan term.

Three features define a bridging loan:

- **Short term.** Bridging loans typically run from a few months up to 24 months, with a maximum of around 36 months. Overall cost is driven more by how long the loan is outstanding than by the headline rate.
- **Interest priced monthly.** Interest is quoted per month rather than per year, and sits higher than mortgage rates to reflect the short-term, higher-risk nature of the lending.
- **Secured on property or land.** Security is taken over residential property, buy-to-let and HMOs, commercial and semi-commercial buildings, mixed-use property, development sites, or land with or without planning. Additional security can sometimes be offered to increase leverage or improve terms.

Because the lending is asset-led, adverse credit, complex income, or unconventional circumstances can often be accommodated where the fundamentals of the deal are strong. Some products are available on a non-status basis, meaning borrower income and experience are not the key drivers of approval.

**Who can borrow.** Bridging loans are available to individuals, Special Purpose Vehicles and limited companies, Limited Liability Partnerships (LLPs), trading companies, charities, and onshore and offshore trusts.

## Talk it through with an adviser

Speak to a Mortgage Lane adviser about your circumstances and the next steps.

Published: 2026-04-13

Last reviewed: 2026-09-11

Source: https://mortgagelane.com/guides/bridging-loan-guide/what-is-a-bridging-loan