Automated valuations (AVMs)
Property data can establish a value without arranging a site visit, reducing the wait for an inspection and report.
Mortgages
Bridging loans
Explore bridging loan solutions for land and property, assisting homeowners and business owners with short-term funding.
Joseph Lane
CeMAP · FCA authorised firm
- Published
- 4 Aug 2026
- Last reviewed
- 12 Oct 2026
- Reading time
- 10 min
Expert Bridging Loan Solutions
Speak to a Mortgage Lane adviser about your options.
In short
A bridging loan is short-term finance secured against property, used to cover a funding gap until a sale, refinance or another agreed repayment source is available. It can help with property purchases, auction deadlines, refurbishments and releasing equity. The loan amount and terms depend on the property, your circumstances and a credible exit strategy. Bridging loans can be regulated or unregulated, depending on how the property is used and the circumstances of the borrowing.
Bridging Finance Requires Specialist Structuring From the Outset
Bridging finance is highly lender-specific, so the loan needs structuring correctly from the start. The right lender depends on the asset, the leverage, the timescale and the exit strategy. A poor match raises the risk of delay, repricing or a decline.
Speed, execution and specialist lender access
The valuation and legal process can determine how quickly a bridging application moves forward. We identify lenders whose processes suit your property and deadline, including those that accept the following where the case qualifies:
Desktop valuations
A valuer reviews the property remotely where lender criteria allow this, avoiding the scheduling needed for a physical inspection.
Search indemnity insurance
Where the lender and solicitors accept the cover, legal work may progress without waiting for certain property searches.
Title insurance
An acceptable policy may cover a specific insurable title risk, allowing completion without first resolving that issue. Suitability depends on the lender and legal advice.
We check these options early alongside the exit strategy and legal structure. Availability depends on the property, loan-to-value, lender criteria and any regulatory requirements; some cases still need a full valuation or searches.
Bridging calculator
Estimate the gross loan against property value before interest, fees and retained amounts.
Indicative estimate only, subject to lender criteria and valuation. This is not a mortgage offer. Your property may be repossessed if you do not keep up repayments.
Bridging Loan Criteria
| 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 |
| 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) |
Some buy-to-let and commercial mortgages are not regulated by the Financial Conduct Authority.
| Feature | Detail |
|---|---|
| Additional Security | 100%+ |
| Residential | 90% |
| Commercial | 75% |
| Land | 70% |
Some buy-to-let and commercial mortgages are not regulated by the Financial Conduct Authority.
Types of Bridging Loans
Regulated bridging loans
Short-term borrowing for homeowners and homebuyers where the loan falls within mortgage regulation. Explore how the intended use of the property affects the advice and protections required.
Read more about Regulated bridging loansGet in touch about Regulated bridging loans
Bridging loans for homebuyers
Regulated bridging is often used to resolve timing issues in residential transactions, as well as to buy dilapidated or un-mortgageable homes.
Read more about Bridging loans for homebuyersGet in touch about Bridging loans for homebuyers
Pub bridging loan
A pub bridge loan can be used to buy a pub where speed, flexibility or the property's condition means a traditional commercial mortgage is not suitable at the point of purchase.
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Hotel bridging loans
A hotel bridging loan funds the purchase, refurbishment or refinance of a hotel, including closed hotels and auction purchases. The loan is sized on the trading value or the value with trade ceased, and a hotel mortgage or a sale repays it.
Read more about Hotel bridging loansGet in touch about Hotel bridging loans
Farm bridging loan
A farm bridging loan is short-term, property-backed finance used to buy, refinance or stabilise farms and agricultural property where agricultural or commercial lending is too slow, too restrictive or unavailable at the point of transaction. It gives farmers, landowners and rural investors speed and flexibility while they arrange longer-term finance or complete a sale.
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Land bridging finance
A bridging loan to buy land is short-term funding used to secure land quickly where a land mortgage is unavailable, too slow or dependent on future planning or development. Buyers can complete in competitive or time-sensitive situations, then use the term to progress planning, resolve legal matters or arrange longer-term finance.
Read more about Land bridging financeGet in touch about Land bridging finance
Business bridging loans
If a business needs to fund an urgent equipment or asset purchase, such as replacing machinery it depends on, we can source a bridging solution quickly.
Read more about Business bridging loansGet in touch about Business bridging loans
Refurbishment loans up to 90% LTV
Refurbishment loans fund the purchase and improvement of property across residential, investment and commercial assets. The right structure depends on whether the borrower is a home buyer or an investor, the scale of the works and the intended exit.
Read more about Refurbishment loans up to 90% LTVGet in touch about Refurbishment loans up to 90% LTV
Probate loans
Probate loans meet Inheritance Tax and estate costs before the grant, or pay a beneficiary part of their share early. After the grant, bridging on the inherited property can clear what is left, with HMRC's own payment routes considered first.
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Re-bridging loans
Re-bridging refinances a bridging loan with a new bridge when the exit has not happened by the end date. The new loan covers the redemption figure plus its own fees and interest, so an extension from the existing lender is worth pricing first.
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Bridging loan for property flip
A bridging loan for a property flip funds the purchase and renovation of a property that is then sold at a higher value once the works are complete. It suits short-term investment projects where speed and access to funds matter more than long-term affordability.
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Agricultural bridging loan
An agricultural bridging loan is short-term, asset-backed finance for farmers, landowners, estates and agricultural businesses that need fast access to capital across a wide range of rural and agricultural scenarios.
Read more about Agricultural bridging loanGet in touch about Agricultural bridging loan
Bridge to let mortgage
A bridge-to-let mortgage is a short-term finance solution used to buy or refinance a property and then move 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, which suits properties that cannot meet standard rental or condition criteria at the point of purchase.
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Remortgaging after a bridging loan
A buy to let, residential or commercial mortgage on the same property is one of the two usual ways to repay a bridge. The term lender values the property afresh, tests the rent or income and may apply a six-month ownership rule.
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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 can include paddocks, stables, manèges, barns or rural land in equestrian use, which can fall outside standard lender criteria because of planning restrictions, limited income or mixed use.
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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.
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VAT bridging loans
A VAT bridging loan is a short-term finance solution for the VAT on a property purchase or development, where VAT is payable upfront and will be reclaimed later from HMRC. Buyers, investors and developers can complete without tying up working capital while they wait for the VAT refund.
Read more about VAT bridging loansGet in touch about VAT bridging loans
Buy properties with no deposit
With Additional Security
An equity bridging loan lets you use the equity in your current home (or another property you own) to support the purchase of a new property without a cash deposit. This is usually done through a cross-charge, where the lender takes security over both the new purchase and your existing property.
The structure suits a purchase where the new property is uninhabitable, un-mortgageable or being bought for renovation, and where cash is tight but there is substantial equity elsewhere. Because the risk is spread across more than one property, some lenders can support 100% of the purchase price, and in some cases part of the build or refurbishment costs, subject to their overall loan-to-value limits and a workable exit.
Without Additional Security
Where no additional security is available, borrowing is capped by the value of the property being bought. In these cases lenders can usually advance up to 90% loan-to-value, subject to the property type and risk.
In below market value (BMV) scenarios, higher effective leverage is possible, and lenders measure the limit on the price or on the value. In our experience some cap the loan at 90% of the purchase price, while others lend up to 85% of open market value (OMV) with no cap at the price. Some lenders quote up to 90% of OMV on a gross basis, which includes rolled-up interest for the full loan term. With a lender that measures on value, the net advance can equal 100% or more of the purchase price, as long as the total gross loan stays within that lender's OMV limit, and in some cases it can also contribute towards renovation or refurbishment costs. Our guide to non-status bridging loans sets out both approaches.
In each case the lender needs a professional valuation confirming the OMV and the genuine BMV discount, and a workable exit strategy.
On a discounted purchase, in our experience some lenders cap the loan at 90% of the price, while a lender measuring on open market value can make a net advance of 100% or more of the price, within its OMV limit.
Bridging loan interest payments
Serviced interest (monthly payments)
You pay the interest each month during the loan term and repay the original loan amount at exit.
Illustrative example (1% a month on £100,000 over 12 months):
- £1,000 paid monthly
- £100,000 repaid at redemption
- Total interest over 12 months: £12,000
Best suited for
- Borrowers with reliable income or rental cash flow
- Income-producing assets
- Investors seeking lower overall borrowing cost
Underwriting Focus
- Income and affordability assessment
- Sustainability of monthly payments
- Standard financial checks
Key benefit
Lower total interest cost, with no roll-up or compounding of interest.
Deducted interest (retained interest)
The full interest for the agreed term is calculated upfront and deducted from the loan advance, and no monthly payments are made.
Illustrative example (1% a month on £100,000 over 12 months):
- £12,000 total interest
- £12,000 deducted upfront
- £88,000 received
- £100,000 repaid at exit
Best suited for
- Property flips
- Auction purchases
- Renovation projects
- Borrowers without regular income
Underwriting Focus
- Exit strategy (sale or refinance)
- Asset value and liquidity
- Risk of project completion
Key benefit
No monthly payments, preserving cash flow during the term.
Not quite sure what you need?
If you are not sure what you need, request a call back from one of our mortgage advisers.
- Call backs during our opening hours, Monday to Friday, 9am to 6pm
- Timescales to offer vary by lender and case, and your adviser will explain what to expect
Bridging loan features and structuring
A revolving credit facility bridging loan
A revolving credit facility can be structured as a longer-term bridging solution, with a property used as security for an extended period (up to five years on the facilities we see) instead of a single, one-off bridging transaction.
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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.
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Second charge bridging loans
A second charge bridging loan releases property equity quickly without refinancing or disturbing an existing first-charge mortgage.
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Equitable charge bridging loans
An equitable charge bridging loan is bridging finance where the lender takes an equitable charge over a property instead of a legal charge. It is used where speed, complexity or legal constraints make a full legal charge impractical at the outset, provided there is enough equity and a clear exit strategy.
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Bridging loans UK
We arrange bridging loans throughout the UK, including England, Wales, Scotland and Northern Ireland, for a wide range of property financing requirements.
Bridging Loan Services in England
Read about bridging finance for residential and commercial property transactions in England.
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Bridging Loans in Scotland
Read about bridging finance for residential and commercial properties in Scotland, including the terms that may affect a transaction.
Read more about Bridging Loans in ScotlandGet in touch about Bridging Loans in Scotland
Bridging Loans in Wales
Read about bridging finance for residential and commercial property transactions in Wales.
Read more about Bridging Loans in WalesGet in touch about Bridging Loans 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.
Read more about Bridging Loans in Northern IrelandGet in touch about Bridging Loans in Northern Ireland
Explore bridging loan insights and guides
GuideRead more about Bridging loan for equestrian landBridging 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.
GuideRead more about A Revolving credit facility bridging loanA 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.
Related case studies
Frequently asked questions and answers on bridging loans
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 I get a bridging loan if I am retired?
Yes, retired borrowers can get bridging loans, because lenders assess property security, loan-to-value and the exit strategy more than employment or pension income. Income is usually relevant only where the exit depends on a residential refinance or the loan needs monthly interest payments.
Can I pay off a bridging loan early?
Yes, you can usually repay a bridging loan early. Bridging finance is designed to be short term, so interest generally runs only for the time the loan is outstanding. In our experience the minimum term is usually one month, and three months with some lenders. Some lenders also charge a minimum interest period or an exit fee, so check the redemption terms before choosing a product.
Can I get a £5 million bridging loan in the UK?
Yes. Bridging loans of £5 million and above are available in the UK from specialist bridging lenders and private banks. A bridging loan is a short-term secured loan, and loans of £5 million are usually secured against high-value residential, commercial or mixed-use property. The maximum loan-to-value and the term vary by lender.
How quickly can I get a £2 million bridging loan to buy at auction?
A £2 million bridging loan for a UK auction purchase has to complete within the deadline set in the auction contract, so the lender, valuer and solicitors need to be lined up before the auction. Completion speed depends on the legal work, the property valuation and how quickly the borrower supplies documents. Some bridging lenders move faster than others, for example by accepting a search indemnity policy in place of local authority searches.
Can an 80 year old get a bridging loan?
Yes, an 80-year-old can get a bridging loan with some lenders. Bridging lenders base the decision mainly on property security, loan-to-value and a clear exit strategy, not on age or income. Age matters most where the exit relies on a mortgage with its own age limits, and each lender sets its own age criteria.
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.
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.
Which lenders offer large bridging loans on country houses?
Large bridging loans on country houses come from specialist bridging lenders, private banks and some family offices, more than from high street banks. Lenders assess country houses individually because a rural property can have a smaller pool of buyers, so the maximum loan-to-value on a country house can be lower than on a standard urban home.
Can I use a bridging loan to buy a hotel before refinancing to a commercial mortgage?
Yes. A bridging loan can fund the purchase of a hotel where the purchase has to complete faster than a commercial mortgage lender can work, as at auction, or where the hotel's accounts do not yet support a commercial mortgage. The bridging lender looks at the hotel's value, the buyer's experience and the refinance plan before it lends. The commercial mortgage that repays it is assessed on the hotel's trading under the new owner, so the bridge term needs to leave time to build that record. On the hotel cases we arrange, the commercial mortgage runs up to 75% of the hotel's value.
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 by the FCA?
Some bridging loans are regulated by the FCA. A bridging loan is FCA-regulated if it is secured against the borrower's main residence or a property intended to become their main home; the legal test is that 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, commercial property, land or investment purposes are usually unregulated.
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.
Are renovation mortgages available for fixer-upper properties in the UK?
Yes, renovation mortgages are available in the UK for fixer-upper properties, although the options are limited. They are usually specialist renovation or self-build style products that release funds in stages. If the property is uninhabitable at purchase, bridging finance is often used first, followed by a mortgage once the works are complete.
Are there any risks associated with bridging finance in London?
Yes. The main risks with bridging finance are timing, cost and the exit. If a sale or refinance is delayed, interest and fees increase. London market volatility, valuation risk and planning or legal delays can also affect the exit, so a clear, realistic repayment strategy is essential.
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