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Bridging Loans

We’ve partnered with specialist loan provider Fluent Money to help you find the right secured loan for your needs.

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In partnership with Fluent Money

Experienced specialist advisors

  • Bridging loans from FCA regulated lenders
  • No upfront advice fee, no obligation quote & instant decision
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Think carefully before securing other debts against your asset. Your asset may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it. The actual rate and fees charged will depend upon your circumstances. Ask for a personalised illustration.

What can I use a bridging loan for?

Bridging loans can be used to bridge the gap when you don’t have immediate funds available including:

Property chain

You’re in a property chain and don’t want to lose your dream home

Auction Property

You’re buying an auction property and need to raise funds quickly

Renovation

To cover renovation costs until you can remortgage or to fund rental property upgrades

Downsizing

You are downsizing and want to avoid the stress of selling and buying at the same time

Why use our partner, Fluent Money for a bridging loan?

Professional advice tailored to your unique financial situation

No obligation quote and instant decision

No upfront broker fee for initial advice (usually £500)

Flexible and fast specialist lending service

Access to a wide range of FCA regulated lenders

Excellent 4.9 out of 5 Trustpilot rating from 9,442 reviews

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Get a bridging loan with Fluent Money in 3 simple steps:

1. Fill in a short form

Tell us about your loan requirements

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2. Speak to an expert advisor

Get quotes & discuss options

3. Proceed with your application

Arrange your financing

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Bridging loans explained

What is a bridging loan?

Bridging loans are a quick way to borrow money in the short term and can be used to ‘bridge the gap’ if you need to buy one property before selling another. They are secured loans, you have to secure an asset against them, usually a property or properties.

How do bridging loans work?

Here’s an example of how a bridging loan works if you own your property outright. Although you can also get a bridging loan if you have a mortgage on your property:

  • Find your new home: Say it costs £300,000 and if you can’t move quickly, you’ll lose out.
  • You need to bridge the gap: You own a house worth £350,000 but there’s a delay in selling it.
  • You take out a bridging loan: Take out a bridging loan of £300,000 so that you can buy your new house. Your current house stays on the market and you are actively looking for a buyer.
  • Your old home sells: Once your sale completes, you receive the proceeds.
  • You repay the loan: You pay back the bridging loan plus interest and fees.

If you’re ready to apply, get a bridging loan quote now.

How much can I borrow with a bridging loan?

You can typically borrow between £50,000 and £10 million with a bridging loan. The amount depends on how much equity you have and your credit rating. The maximum loan, including interest, is normally limited to 75% loan to value. The loan is secured on the property or across multiple properties. Bridging loans, unlike a mortgage, are not directly linked to your income.

How much does a bridging loan cost?

Bridging loan interest rates tend to be higher than other types of loans because bridging loans are a higher risk than a traditional mortgage and they’re designed to be short term. You can expect to pay anything from 0.52% per month, depending on your circumstances. And you’ll usually only pay interest for the duration of the loan until you pay it off.

What other fees are involved in a bridging loan?

The exact fees depend on the lender and your circumstances. These could include: 

  • Arrangement fees 
  • Administration/redemption fee to cover the cost of paperwork for set-up and at the end of the loan period 
  • Valuation fees to cover the cost of sending a surveyor to value the property you use as a security
  • Legal fees — the lender will use a solicitor to manage the legal side
  • Broker fees

What are the pros & cons of bridging loans?

Bridging loan advantages:

  • They offer a short-term solution to tide you over while waiting for other funds to arrive 
  • You could borrow a large amount 
  • It’s a flexible borrowing option

Bridging loan disadvantages:

  • They tend to have higher interest rates than other types of loans 
  • Your home is at risk if you can’t meet the repayments 
  • They’re not suitable for long-term borrowing. 

What are the different types of bridging loan?

Open bridging loans: don’t have a set repayment date, so you can pay it off once you have the money. But most lenders will expect you to pay it off within a year. 

Closed bridging loans: have a fixed repayment date. This can be useful if you’re selling a property and are waiting for completion to get the money to put towards your new home.  

First charge loans: if you own your property outright or are using the bridging loan to pay off your mortgage, the bridging loan will be paid before any other debts if you fall behind with repayments. 

Second charge loans: if you have a mortgage and fall behind on the repayments, the mortgage will be paid off before the bridging loan if you have to sell your home to pay off your debts. 

Bridging loans: How they work, costs & when to use one

Bridging loans explained in simple terms, including how they work, costs, risks and when they may be suitable.
View guide >

Bridging loan calculator

Use our free bridging loan calculator to get a detailed estimate of interest, charges and other costs of your bridging finance.
View calculator >

How do I get a bridging loan?

Submit an enquiry form or if you want to speak to a specialist broker immediately call Fluent Money on 01204 899 584. They are open Monday – Thursday 09:00 – 19:00 and Friday 09:00 – 17:00.

Do bridging loan brokers charge?

Ordinarily yes, charging from £500. But the experienced team of brokers at Fluent Money do not charge an initial advice fee, all information will be provided via an indicative quote, allowing you to make an informed decision. A broker fee will be payable upon completion of your loan.

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Frequently Asked Questions: Bridging Loans

How do I qualify for a bridging loan?

Bridging loans are usually secured against property; the amount you’ll be able to borrow on a bridging loan will depend on the amount of equity you have in your property/properties. You can get a rough idea with a bridging loan calculator.

How long does it take to arrange a bridging loan?

Some bridging loans can be arranged within as little as 48 hours from initial application. However, a timeframe of two to four weeks from start to finish is more typical.

Can I pay off a bridging loan early?

Yes, most lenders allow you to repay your loan early without penalty. Where this happens, interest is usually only charged for the period where the funds were actually borrowed.

Can you use a bridging loan to buy an auction property?

Yes. If there’s a delay getting a mortgage on an auction property, you can use a bridging loan to purchase a property at auction. One benefit is they can be arranged quickly. You can also use bridging loans to buy unmortgageable properties.

What is a secured loan?

Secured loan usually means a loan that is secured by way of a legal charge over property owned by the customer. Secured loans are sometimes referred to as a second mortgage.

What is a bridging loan exit strategy?

A bridging loan exit strategy is your planned repayment method, for example your bridging loan exit strategy may be the sale of a property.

What will happen if I cannot repay my bridging loan?

As soon as you think you will be unable to clear the bridging loan on time, speak to your lender asap; they may be able to work out a different solution in terms of repayment. Alternatively, you may need to consider taking out a new bridging loan to clear the old one and give you more time to pay.

What are the alternatives to a bridging loan?

There are a number of other options you may consider instead of taking out a bridging loan such as waiting before you buy, getting a personal loan, remortgaging or let to buy. All of these come with factors to consider, so it is best to seek expert financial advice — a specialist broker will explore all your options when you consider a bridging loan.

How can I get an instant bridging loan quote?

You can complete an enquiry form or speak to our specialist broker partners at Fluent Money now on 01204 899 584.

Or you can use this free online bridging loan calculator for detailed examples of costs associated with taking out a bridging loan instantly.

Should I use a bridging loan broker?

Yes. When you use a bridging loan broker, they’ll shop around on your behalf to get the best bridging loan for your needs but they’ll also be able to negotiate with lenders on your behalf to get a better deal.

What does the bridging loan application process involve?

Because a bridging loan is tied to your property, the process of applying is similar to a mortgage application. A bridging loan provider will check your credit history, monthly income and outgoings, and outstanding mortgage balance. 

The property, or properties, you’re using to secure the loan will be valued. This can often be done automatically without any cost. Once all underwriting and credit checks are complete, you’ll then receive a formal offer.

With our partner broker Fluent Money, you can compare options from multiple FCA regulated lenders in one place.

Our guides & checklists

Specialist Lending Guides & Tools

Bridging loans: How they work, cost & when to use
Bridging Loan Calculator
Homeowner loans explained
Financing an auction property
Buy to Let mortgages explained
Let to Buy mortgages explained
Remortgaging to release equity

Buying Advice

Buying a house: The step-by-step process
Buying & selling at the same time
Buying in a property chain
Buying a house at auction
Downsizing: the pros & cons
How long does buying a house take?

How to speed up your property sale

Step by step guide to buying
11 documents you need to sell
12 tips for selling your home
How long does it take to sell a house?
How to speed up conveyancing
Quick house sale firms: what to watch for
HomeOwners Alliance Ltd is registered in England, company number 07861605. Information provided on HomeOwners Alliance is not intended as a recommendation or financial advice. HomeOwners Alliance Ltd is an Introducer Appointed Representative (IAR) of Fluent Money Limited, which is authorised and regulated by the Financial Conduct Authority. Calls may be monitored/recorded.