Mortgage guide
Bridging Loans: detailed guide
Explore bridging loan solutions for land and property, assisting homeowners and business owners with short term funding.
- Published
- 4 Aug 2026
- Last reviewed
- 8 Oct 2026
- Reading time
- 6 min
Bridging loans for homebuyers
In addition to purchasing dilapidated or un-mortgageable homes, regulated bridging is commonly used to resolve timing issues in residential transactions.
Pub bridging loan
A pub bridge loan can be used to buy a pub where speed, flexibility, or property condition means a traditional commercial mortgage is not suitable at the point of purchase.
Farm bridging loan
A farm bridging loan is a form of short-term, property-backed finance used to purchase, refinance, or stabilise farms and agricultural property where traditional agricultural or commercial lending is too slow, restrictive, or unavailable at the point of transaction. It is designed to give farmers, landowners, and rural investors speed and flexibility, while allowing time to arrange longer-term finance or complete a sale.
Bridging calculator
Estimate the gross loan against property value before interest, fees and retained amounts.
Land bridging finance
A bridging loan to buy land is a short-term funding solution used to secure land quickly where traditional land mortgages are unavailable, too slow, or dependent on future planning or development outcomes. It allows buyers to complete purchases decisively, often in competitive or time-sensitive situations, while creating time to progress planning, resolve legal matters, or arrange longer-term finance.
Business bridging loans
If a business needs to fund an urgent equipment or asset purchase, such as replacing machinery critical to operations, we can source a bridging solution quickly.
Refurbishment loans up to 90% LTV
Refurbishment loans provide a flexible and effective way to purchase and improve property, supporting a wide range of strategies across residential, investment, and commercial assets. The most appropriate structure depends on whether the borrower is a home buyer or an investor, the scale of works, and the intended exit. Below is a clear breakdown of the main refurbishment finance options available.
bridging loan for property flip
A bridging loan for a property flip is used to purchase and renovate a property quickly, with the intention of selling it at a higher value once works are completed. It is specifically designed for short-term investment projects where speed, flexibility, and access to funds are more important than long-term affordability.
Agricultural bridging loan
An agricultural bridging loan is a form of short-term, asset-backed finance designed for farmers, landowners, estates, and agricultural businesses that require fast access to capital across a wide range of rural and agricultural scenarios.
Bridge to let mortgage
A bridge-to-let mortgage is a short-term finance solution used to purchase or refinance a property and then transition it onto a buy-to-let mortgage once it becomes mortgageable. It combines an initial bridging loan with a planned exit onto a long-term buy-to-let mortgage, making it ideal for properties that cannot meet standard rental or condition criteria at the point of purchase.
Bridging loan for equestrian land
A bridging loan can be used to buy equestrian land where speed, flexibility, or the specialist nature of the asset makes traditional agricultural or land finance unsuitable at the point of purchase. Equestrian land often includes paddocks, stables, manèges, barns, or rural land with equestrian use, which can fall outside standard lender criteria due to planning restrictions, limited income, or mixed-use considerations.
Auction bridging finance
Auction property loans need to fit the completion deadline in the auction contract. Read about the financial and legal preparation involved in arranging bridging finance.
VAT bridging loans
A VAT bridging loan is a short-term finance solution used to fund the VAT element of a property purchase or development where VAT is payable upfront but will be reclaimed later from HMRC. It allows buyers, investors, and developers to complete transactions without tying up large amounts of working capital while waiting for the VAT refund.
A Revolving credit facility bridging loan
Revolving credit facilities can be structured as a longer-term bridging solution, where a property is used as security for an extended period, often up to five years, rather than being limited to a single, one-off bridging transaction.
Third charge bridging loans
A bridging loan with a third charge is a specialist form of bridging finance where the lender takes a third-ranking legal charge behind an existing first and second charge on a property.
Second charge bridging loans
A second charge bridging loan is a highly effective way to release property equity quickly without refinancing or disturbing an existing first-charge mortgage.
Equitable charge bridging loans
An equitable charge bridging loan is a specialist form of bridging finance where the lender takes an equitable (rather than legal) charge over a property. This structure is used where speed, complexity, or legal constraints make a full legal charge impractical at the outset, but there is still sufficient equity and a clear exit strategy.
Bridging Loan Services in England
Read about bridging finance for residential and commercial property transactions in England.
Bridging Loans in Scotland
Read about bridging finance for residential and commercial properties in Scotland, including the terms that may affect a transaction.
Bridging Loans in Wales
Read about bridging finance for residential and commercial property transactions in Wales.
Bridging Loans in Northern Ireland
Lender options can be more limited in Northern Ireland. Read about arranging bridging finance for residential and commercial property through specialist lenders and family offices.
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
Are bridging loans dangerous?
A bridging loan is not dangerous in itself, but it carries more risk than a standard mortgage if it is used without a workable plan. Bridging loans are short-term, high-cost loans that rely on a clear, achievable exit such as a sale or refinance, and the risk increases if the exit fails, the term is exceeded or the costs are misunderstood.
Are bridging loans regulated?
Some are. A bridging loan is regulated by the FCA when it is secured on a property that is, or will become, the borrower's main residence: in law, where at least 40% of the property is used, or is intended to be used, as a dwelling by the borrower or a close family member. Bridging loans for buy-to-let, investment, commercial property or land are usually unregulated.
Can you be refused a bridging loan?
Yes, a bridging loan can be refused. Declines usually come from a weak or unrealistic exit strategy, a loan-to-value that is too high, poor asset quality or marketability, or a refinance exit that will not work. Income and credit are rarely the deciding factors, because lenders prioritise the property security, the leverage and the certainty of repayment.
Are bridging loans still available?
Yes, bridging loans are still available in the UK. They are provided by specialist lenders and some challenger banks, and are commonly used for short-term property finance, including auctions, chain breaks, refurbishment, and commercial or investment purchases where speed and flexibility are required.
Can I get a bridging loan to renovate my house?
Yes, a bridging loan can be used to renovate a house where it funds the purchase or holding period and you pay for the renovation yourself. It is often used for a property that cannot be mortgaged at first, with a planned refinance onto a residential mortgage once the works are complete. If the lender needs to fund the works as well, renovation or development finance is usually required.
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