--- title: "Bridging Loan Agreement in Principle | Process & Criteria" description: "Bridging loan agreement in principle: what it is, what you need, lender criteria, and the steps and timescales from enquiry to completion." url: "https://mortgagelane.com/short-term-finance/agreement-in-principle" site: "Mortgage Lane" collection: "mortgages" date: "2026-10-12" author: "Joseph Lane" category: "Bridging finance" reviewed: "2026-10-12" reading_time: "9 min" byline: "Joseph Lane" author_credentials: "CeMAP · FCA authorised firm" language: "en-GB" robots: "index,follow" --- # Bridging Loan Agreement in Principle | Process & Criteria Bridging loan agreement in principle: what it is, what you need, lender criteria, and the steps and timescales from enquiry to completion. ## Bridging Loan Agreement in Principle Bridging loan agreement in principle: what it is, what you need, lender criteria, and the steps and timescales from enquiry to completion. [Bridging agreement in principle](https://mortgagelane.com/definitions?term=bridging-agreement-in-principle) Bridging finance Indicative bridging terms based on initial information, subject to valuation, legal checks and underwriting. [Read the full definition of Bridging agreement in principle](https://mortgagelane.com/definitions?term=bridging-agreement-in-principle) ## Talk to an adviser about bridging loan agreement in principle Speak to a Mortgage Lane adviser about your options. ## At a glance A [bridging loan agreement in principle](https://mortgagelane.com/definitions#def-bridging-agreement-in-principle) is a lender's indicative terms — loan amount, loan-to-value, rate, fees and term — based on the information you give about the property, the purpose, the exit and yourself, usually issued within a day or two and before any valuation. It is not a [binding offer](https://mortgagelane.com/definitions#def-mortgage-offer): the lender confirms the terms after valuation, legal checks and [underwriting](https://mortgagelane.com/definitions#def-underwriting) of the exit. Bridging moves fast because lenders focus on the security and the exit rather than detailed income assessment, but timescales still depend on the valuation and the legal work — and both start only once the terms are accepted. ## How Mortgage Lane can help Mortgage Lane obtains agreements in principle and manages bridges from enquiry to completion — for chain breaks, auctions, refurbishments, conversions, business needs and regulated bridging on your home. ## What is a bridging agreement in principle? An agreement in principle, sometimes called indicative terms or a [decision in principle](https://mortgagelane.com/definitions#def-agreement-in-principle), sets out the lender's proposed terms subject to valuation, legal due diligence and confirmation of the exit. It usually involves a soft credit search or none, and shows whether the lender will consider the case and on what terms. Regulated bridging on your home follows the FCA's [MCOB](https://www.handbook.fca.org.uk/handbook/MCOB/) rules on disclosure and repayment strategy. ## Rates **How the pricing is built:** the rate and fees in the agreement in principle depend on loan-to-value, property type, term and the strength of the exit; they are confirmed or adjusted after valuation. ## Criteria *Criteria* | Criterion | Value | | --- | --- | | Security | Residential, commercial, mixed-use, land | | Charge | First or second charge | | Exit | Sale, refinance or other repayment, evidenced | | Borrower | Individuals, companies, LLPs, trusts | | Credit | Adverse considered case by case | | Term | Commonly up to 12–24 months | | Purpose | Purchase, refinance, refurbishment, capital raise, chain break | | Regulation | Regulated if secured on borrower's or related person's home | *Criteria vary by lender and must be checked for your application.* ## What an agreement in principle includes - [Gross loan](https://mortgagelane.com/definitions#def-gross-loan) and loan-to-value - Rate and how interest is treated (retained, rolled, serviced) - Arrangement, exit and other fees - Term - Conditions: valuation, legal checks, exit evidence ## What you need - Property details and estimated value - Purpose and amount - [Exit strategy](https://mortgagelane.com/definitions#def-exit-strategy) with evidence — sale or refinance - Identification and address - Assets and liabilities, and experience for investors - Credit history disclosure ## The process 1. **Enquiry and agreement in principle** — usually within one to two working days. 2. **Acceptance and application** — fees for valuation and legal work. 3. **Valuation** — instructed immediately; days to a week or more. 4. **Legal work** — title, searches or insurance, charge documents. 5. **Offer and completion** — funds released. Simple, prepared cases can complete in days, but valuation, legal work and lender checks may take several weeks. Confirm the timetable before committing to a deadline. ## How it works 01 ### Step 1 Enquiry and agreement in principle. 02 ### Step 2 Terms accepted; valuation instructed. 03 ### Step 3 Legal due diligence; exit confirmed. 04 ### Step 4 Formal offer. 05 ### Step 5 Completion and funds released. ## From enquiry to completion: the timeline **An illustrative auction purchase with a 28-day completion.** ### Comparison details *From enquiry to completion: the timeline* | Day | Step | | --- | --- | | Before auction | Agreement in principle; legal pack reviewed | | Day 0 | Hammer falls; deposit paid; terms accepted | | Days 1–5 | Valuation completed | | Days 3–20 | Legal work; title and searches | | Days 20–25 | Offer issued | | Day 28 | Completion | *Illustrative; timescales depend on lender, valuer and solicitors. Not an offer of finance.* The work done before the auction — agreement in principle and legal pack review — is what makes 28 days achievable. ### What decides the case Get the agreement in principle before you commit, and start the valuation and legal work the day terms are accepted. **Related reading:** [bridging loans: how much can I borrow?](https://mortgagelane.com/short-term-finance/how-much-can-i-borrow); [auction finance](https://mortgagelane.com/short-term-finance/auction-property-loans). ## Regulation and the property used as security Regulation depends on the borrower, the security, its intended use and any applicable exemption. A loan to an individual or trustees secured on land used or intended for use as a dwelling may fall within the [regulated mortgage](https://mortgagelane.com/definitions#def-regulated-mortgage) rules; business lending has additional exclusions. Ask the adviser to confirm the classification before proceeding. ## Sources and further guidance - [FCA guidance on regulated mortgage contracts](https://handbook.fca.org.uk/handbook/perg4) ## Related mortgages and guides ## Bridging calculator Illustrative estimates only. Use the lender’s proposed figures; this calculator does not assess eligibility or guarantee an offer. Explore your borrowing Start again Enter your figures in pounds. Your estimate updates as you go. Indicative maximum loan \- Enter your figures to see an estimate. Loan to value [Discuss your options](https://mortgagelane.com/contact) 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 Agreement in Principle FAQs **Q: What is a bridging loan agreement in principle?** faq-id: short-term-finance-agreement-in-principle-what-is-a-bridging-loan-agreement-in-principle A bridging loan agreement in principle is a lender's indicative terms — loan amount, loan-to-value, rate, fees and term — based on information about the property, purpose, exit and borrower, issued before valuation and legal checks. It is not a binding offer. **Q: How long does a bridging agreement in principle take?** faq-id: short-term-finance-agreement-in-principle-how-long-does-a-bridging-agreement-in-principle-take A bridging agreement in principle is usually issued within one to two working days of a complete enquiry, sometimes the same day, because it relies on the information provided rather than a valuation or legal work. **Q: Does a bridging agreement in principle affect my credit file?** faq-id: short-term-finance-agreement-in-principle-does-a-bridging-agreement-in-principle-affect-my-credit-file Many bridging agreements in principle involve a soft credit search or none, which does not create a hard-search footprint visible to other lenders. A [hard search](https://mortgagelane.com/definitions#def-credit-search) usually happens later, at full application, depending on the lender. **Q: Is an agreement in principle a guarantee of a bridging loan?** faq-id: short-term-finance-agreement-in-principle-is-an-agreement-in-principle-a-guarantee-of-a-bridging-loan An agreement in principle is not a guarantee: the terms are subject to valuation, legal due diligence and confirmation of the exit. A lower valuation or a title issue can change the loan or the terms. **Q: How long does a bridging loan take to complete?** faq-id: short-term-finance-agreement-in-principle-how-long-does-a-bridging-loan-take-to-complete Simple, well-prepared bridging cases can complete in days, while others take several weeks, depending on the valuation, the solicitors and the complexity of the title and exit. Starting the legal work early saves time. **Q: Can a bridging loan complete within 28 days for an auction?** faq-id: short-term-finance-agreement-in-principle-can-a-bridging-loan-complete-within-28-days-for-an-auction [Bridging loans](https://mortgagelane.com/definitions#def-bridging-loan) can complete within an auction's 28-day deadline when the agreement in principle is in place and the legal pack has been reviewed before the auction, and the valuation and legal work start immediately after the hammer falls. **Q: What slows down a bridging loan?** faq-id: short-term-finance-agreement-in-principle-what-slows-down-a-bridging-loan Common delays include slow valuations, title problems, missing searches, [leasehold](https://mortgagelane.com/definitions#def-leasehold) enquiries, complex ownership structures and an exit that needs more evidence. Instructing experienced solicitors early, and gathering exit evidence before applying, reduces these delays. **Q: Do I need a solicitor for a bridging loan?** faq-id: short-term-finance-agreement-in-principle-do-i-need-a-solicitor-for-a-bridging-loan You need a solicitor to act for you, and the lender instructs its own solicitor or uses a dual-representation panel firm. The solicitors check title, prepare the charge and confirm the lender's conditions before completion. **Q: Is a valuation always required for a bridging loan?** faq-id: short-term-finance-agreement-in-principle-is-a-valuation-always-required-for-a-bridging-loan A valuation is usually required, carried out by a surveyor on the lender's panel. Some lenders use desktop or automated valuations for lower-risk, lower loan-to-value cases, which can shorten the timeline. **Q: When are bridging loan fees paid?** faq-id: short-term-finance-agreement-in-principle-when-are-bridging-loan-fees-paid Valuation and legal fees are usually paid up front or during the process; the [arrangement fee](https://mortgagelane.com/definitions#def-product-fee) is usually deducted from the loan at completion; and any [exit fee](https://mortgagelane.com/definitions#def-exit-fee) is paid on redemption. The agreement in principle sets out the fees. **Q: What are the criteria for a bridging loan?** faq-id: short-term-finance-agreement-in-principle-what-are-the-criteria-for-a-bridging-loan Bridging lenders look mainly at the security — its value and type — and the exit — how the loan will be repaid — along with the borrower's identity, credit history, experience for investors, and the purpose of the loan. **Q: Do I need a good credit score for a bridging loan?** faq-id: short-term-finance-agreement-in-principle-do-i-need-a-good-credit-score-for-a-bridging-loan A good [credit score](https://mortgagelane.com/definitions#def-credit-score) is not always required, because bridging lenders focus on the security and the exit. [Adverse credit](https://mortgagelane.com/definitions#def-adverse-credit) is considered case by case, though recent serious adverse credit can narrow choice or reduce the loan-to-value. **Q: Do bridging lenders check income?** faq-id: short-term-finance-agreement-in-principle-do-bridging-lenders-check-income For unregulated bridging, lenders check income mainly where interest is serviced monthly or where the exit is a refinance that depends on income. For regulated bridging on your home, the lender assesses your repayment strategy. **Q: What exit strategies do bridging lenders accept?** faq-id: short-term-finance-agreement-in-principle-what-exit-strategies-do-bridging-lenders-accept Lenders accept exits such as the sale of the property, a refinance onto a mortgage, the sale of another asset, or other funds expected within the term, provided they are realistic and evidenced at application. **Q: Can a company take out a bridging loan?** faq-id: short-term-finance-agreement-in-principle-can-a-company-take-out-a-bridging-loan Limited companies, [limited liability partnerships](https://mortgagelane.com/definitions#def-limited-liability-partnership) and some trusts can take out bridging loans, usually with [personal guarantees](https://mortgagelane.com/definitions#def-personal-guarantee) from directors or members. The lender checks the structure and the people behind it. **Q: How long can a bridging loan last?** faq-id: short-term-finance-agreement-in-principle-how-long-can-a-bridging-loan-last Bridging loans commonly run for up to 12 to 24 months, with some lenders offering longer terms. The term is set to the exit, with time allowed for delays, because extending or [re-bridging](https://mortgagelane.com/definitions#def-re-bridging) adds cost. **Q: What documents do I need for a bridging loan?** faq-id: short-term-finance-agreement-in-principle-what-documents-do-i-need-for-a-bridging-loan You usually need identification and proof of address, property details, evidence of the exit — such as a mortgage agreement in principle or agent's sale advice — a statement of assets and liabilities, and company documents if a company is borrowing. **Q: Can I get a bridging agreement in principle with bad credit?** faq-id: short-term-finance-agreement-in-principle-can-i-get-a-bridging-agreement-in-principle-with-bad-credit You can often get a bridging agreement in principle with bad credit, because lenders focus on the security and exit. The adverse credit is disclosed upfront, and the lender reflects it in the terms. **Q: What is a regulated bridging loan?** faq-id: short-term-finance-agreement-in-principle-what-is-a-regulated-bridging-loan A regulated bridging loan is secured on a property that the borrower or a related person lives in, or will live in, and is regulated by the [Financial Conduct Authority (FCA)](https://mortgagelane.com/definitions#def-financial-conduct-authority) under its Mortgage Conduct of Business (MCOB) rules, including a requirement for a credible repayment strategy. **Q: What happens after I accept the agreement in principle?** faq-id: short-term-finance-agreement-in-principle-what-happens-after-i-accept-the-agreement-in-principle After accepting the agreement in principle, you pay for the valuation, solicitors are instructed, the lender underwrites the case and the exit, and once the valuation and legal checks are satisfactory, a formal offer is issued and the loan completes. ## Want indicative terms? Get in touch with the property, the amount, the purpose and the exit, and we will obtain agreements in principle from lenders whose criteria fit. Let’s talk property finance ## Contact us **Call our team:** [+44 333 231 8206](tel:+443332318206) **Email us:** [enquiries@mortgagelane.com](mailto:enquiries@mortgagelane.com) **Opening hours:** Monday to Friday, 9am–6pm Closed Saturday and Sunday Your enquiry goes to our team, who will get in touch to discuss your next steps. Fields marked are required. First name Last name Email Phone What can we help with? Residential mortgage Remortgage Buy to let Bridging finance Commercial Something else Tell us about your enquiry I am happy to receive occasional mortgage news and rate updates. Send enquiry We use your details to respond to your enquiry and, if you opt in, send updates. See our [privacy policy](https://mortgagelane.com/privacy-policy). Published: 2026-10-12 Last reviewed: 2026-10-12 Source: https://mortgagelane.com/short-term-finance/agreement-in-principle