Common uses
Examples include auction purchases, refurbishment projects, chain breaks and buying before a longer-term facility completes.
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Moneykind business finance guide
Need short-term property funding? Understand the trade-offs.
A bridging loan is short-term finance commonly secured against property. It can help where timing or property condition makes conventional mortgage funding difficult, but it is not a substitute for a credible repayment plan.
Explore your finance options →What to know about short-term property finance
Your exit strategy
Lenders normally expect a realistic plan to repay, such as sale of a property or refinancing. Delays can be expensive.
Interest and fees
Interest may be charged monthly and sometimes retained or rolled up. Also check arrangement fees, valuation, legal costs, exit fees and any minimum interest.
Property and security
The lender will assess property value, condition, ownership and existing charges. Additional security or guarantees may be required.
Main risks
If the exit fails, interest and charges can accumulate. Property used as security may be repossessed if the loan is not repaid.
Before you apply: Finance availability, pricing and terms depend on your circumstances and the provider. Consider independent legal, tax or regulated financial advice where appropriate. Moneykind introduces enquirers to third-party professionals; it does not itself make lending decisions.
How to prepare for an enquiry
Explain what you need
Set out the purpose of the funding, the amount sought, your timescale and how the borrowing will be repaid.
Gather the key information
Depending on the facility, a professional may ask for accounts, bank statements, forecasts, property or asset details and existing borrowing information.
Compare the full commitment
Ask about the total cost, fees, security, guarantees, repayment schedule, early exit terms and what happens if circumstances change.
Understand the introduction
Moneykind helps connect you with a relevant third-party professional. The professional will explain their services, charges and any applicable regulatory status.
Frequently asked questions
How long does a bridging loan last?
Terms are usually short, but the length depends on the lender and transaction. Confirm the contractual maturity and extension provisions.
Can I get a bridge on an unmortgageable property?
Sometimes, depending on the property, proposed works, valuation and lender criteria.
Are bridging loans regulated?
Some bridging loans secured on homes are regulated, while many business or investment bridging facilities are not. Classification depends on the circumstances.
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