A bridging loan is a short-term loan secured on property. You use it to buy or raise money quickly, then repay it from a sale or a longer-term mortgage, usually within 12 months.
ABC Finance has arranged bridging loans since 2000. We search the whole market, find the lender that will take your case and manage the application through to completion.
| Bridging loans at a glance | |
|---|---|
| Rates | From 0.58% a month |
| How much you can borrow | Up to 75% of the property’s value, or more with extra security |
| Term | 1 to 24 months (up to 12 months on a loan secured on your home) |
| Loan size | From £26,000. Large loans arranged |
| Broker fee | None on loans of £100,000 or more |
| Customer rating | 4.9 out of 5 from 57 reviews on Reviews.co.uk |
Get a free quote or work out your costs with our bridging loan calculator.
Key Product Features
Key Features
✅ Bridging loans are short-term secured finance typically lasting 6-24 months, secured against property with exit strategy requirements
✅ FCA regulation applies to residential investment bridging loans up to 24 months, creating distinction between regulated and unregulated scenarios
✅ Costs are higher than traditional mortgages but justified by speed, with interest rates, arrangement fees and additional charges forming total cost
✅ Primary use cases include property auctions with tight completion deadlines, chain breakdown scenarios, and development projects
✅ Property security is required with comprehensive application process involving documentation, lending criteria assessment, and typical timeline from application to completion
What is a bridging loan?
A bridging loan fills a gap between needing money and having it. The classic case is buying a new home before your current one sells. You borrow against property, complete your purchase and repay the loan when the sale goes through.
A bridge works differently from a mortgage. The term runs for months, not decades, and interest is charged monthly. The lender cares most about the value of the property you offer as security and how you will repay at the end. That repayment plan is your exit. Our guide to bridging loans vs mortgages sets out the differences in full.
The loan is secured by a legal charge on property. A first charge bridge ranks ahead of any other loan on that property. A second charge bridging loan sits behind your existing mortgage, so you can raise money without disturbing it.
Wondering whether your own bank can help? Read do high street banks still offer bridging loans?
How does a bridging loan work?
Most bridging loans follow the same path.
- You tell us what you need. The property, the amount, how long for and how you will repay.
- We match you to a lender. Lenders differ on property types, credit history, loan size and speed, and we choose the one that fits your case.
- The lender values the property. It decides how much it will lend, measured as loan to value (LTV).
- Solicitors complete the legal work. The lender takes its charge and releases the money.
- You repay on exit. You sell or refinance at the end of the term, or earlier.
There are two broad types. A closed bridge has a fixed repayment date, often because a sale has already exchanged. An open bridge has no fixed date, so lenders want a strong plan. Read the importance of an exit strategy and, if you plan to move onto a mortgage, can I refinance a bridging loan?
You can pay the interest monthly, add it to the loan to repay at the end (rolled up), or have the lender hold it back from the advance at the start (retained). Rolled-up and retained interest mean no monthly payments, which helps when the property earns nothing during the term.
Our bridging loan process and criteria page covers the paperwork, and what checks bridging lenders carry out explains how they assess you. If you will need a mortgage later, read can a bridging loan affect your mortgage application?
Bridging loan rates, October 2026
Bridging rates are quoted per month. These are the lowest rates available through our lender panel this month, by type of loan:
| Type of bridging loan | Maximum LTV | Rates from (monthly) | Annual equivalent |
|---|---|---|---|
| Regulated, secured on your home | 75% | 0.58% | 6.96% |
| Unregulated residential | 75% | 0.61% | 7.32% |
| Light refurbishment | 85% | 0.60% | 7.20% |
| Heavy refurbishment | 80% | 0.63% | 7.56% |
| Second charge | 70% | 0.79% | 9.48% |
| Semi-commercial | 75% | 0.69% | 8.28% |
| Commercial | 75% | 0.80% | 9.60% |
| Development exit | 75% | 0.75% | 9.00% |
| Land | 65% | 0.90% | 10.80% |
| Adverse credit | Varies | 0.80% | 9.60% |
| Loans of £100,000 or less | Varies | 0.94% | 11.28% |
Annual equivalent is the monthly rate × 12, before fees. It is not an APRC.
Your rate depends most on your LTV. Here is how residential first charge rates rise as you borrow more:
| LTV | 50% | 60% | 65% | 70% | 75% |
|---|---|---|---|---|---|
| Regulated, from | 0.58% | 0.61% | 0.64% | 0.66% | 0.70% |
| Unregulated, from | 0.61% | 0.63% | 0.69% | 0.69% | 0.69% |
The lowest rates go to larger loans on standard houses. The maximum LTV and the lowest rate in each row can come from different lenders, so the cheapest rate is not always available at the highest LTV. Rates change often. Ask us for today’s rate on your case, or see more detail in our bridging loan interest rates guide.
Fees
On top of the interest, most lenders charge an arrangement fee of 2% of the loan. You also pay for a valuation, the lender’s legal costs and your own solicitor. Many lenders charge no exit fee and no early repayment charge, though some set a minimum interest period of one to three months. There is no broker fee from ABC on loans of £100,000 or more.
How much is a £200,000 bridging loan?
Here is an example of a £200,000 bridging loan over nine months, secured on a house worth £300,000 (a 67% LTV), with the interest paid monthly:
| Cost | Amount |
|---|---|
| Interest at 0.75% a month | £1,500 a month, £13,500 over 9 months |
| Arrangement fee at 2% | £4,000 |
| Valuation | £315 |
| Lender’s legal fee (£750 + VAT) | £900 |
| Total cost, before your own solicitor | £18,715 |
These figures are an illustration, not a quote. Run your own numbers in the bridging loan calculator, or read a full case in our bridging loan example.
What can you use a bridging loan for?
Moving home
Bridging lets you buy your next home without waiting for your sale, and stops a broken chain from costing you the property you want. Read should you buy a property before selling your current one? and bridging loans for house purchases. First-time buyers can read bridging loans for first time buyers.
Later life
If you are retired and moving somewhere smaller, see bridging loans for pensioners and how a bridging loan can help you downsize in retirement. Families funding care while a home is sold can read bridging loans for care home fees.
Buying at auction
Auction contracts fix the completion date, usually 20 business days after the sale. Bridging can be agreed before auction day so the money is ready. See auction bridging finance.
Renovations, extensions and conversions
A property with no working kitchen or bathroom, or one that needs structural work, may not qualify for a mortgage. A bridge can buy it and fund the works, and you sell or refinance once it is habitable. See:
- property refurbishment finance
- a guide to buying an unmortgageable property
- bridging loans for an extension
- bridging loans for barn conversions
- bridging loans for a self-build
Property investors
Investors use bridging to buy quickly and add value. Read bridging loans to buy, refurbish and sell, bridge to let for landlords who plan to keep the property, bridging loans for HMOs and short-lease bridging loans. Read about our property investor hunting licence.
If you are buying for less than a property is worth, see below market value bridging finance and open market value bridging loans. With equity in another property as extra security, you may be able to borrow the full price: see 100% bridging loans.
Developers and land
See bridging loans for property developers, bridging loans for land and planning gain finance. When a build loan ends before every unit sells, development exit finance repays it and gives you time to sell.
Personal circumstances
A divorce settlement bridging loan can pay out a former partner before a property sells. If your credit file is not clean, see bad credit bridging loans. If your income is hard to prove, non-status bridging finance explains how lenders assess you instead.
Bridging loans for businesses
Business owners use bridging too, secured on commercial or residential property, when money is needed quickly. Shops, offices, warehouses and mixed-use buildings can all be used as security, as can your home or a rental property.
See commercial bridging loans and bridging loans for small businesses. For particular property types, read bridging loans for hotels, bridging loans for multi-unit freehold blocks and agricultural bridging loans. For facilities of £1 million or more, see large bridging loans.
Regulated and unregulated bridging loans
A bridging loan secured on a home you live in, or will live in, is normally regulated by the Financial Conduct Authority. That brings consumer protections such as affordability checks and a maximum term, currently 12 months. Loans for investment, commercial or development purposes are normally unregulated, which allows longer terms and more flexible criteria.
Read regulated bridging loans and unregulated bridging loans.
How quickly can you get a bridging loan?
Straightforward cases can complete in two to three weeks. Speed depends on how fast the valuation is booked, how quickly both sets of solicitors work and whether your paperwork is ready on day one. Complex titles, commercial property and cases with several properties take longer.
Have ID, proof of address, property details and evidence of your exit ready before you apply. See fast bridging loans.
Bridging loan or development finance?
Bridging suits buying a property and carrying out light or heavy refurbishment. The lender advances the money in one go, sometimes with a separate amount for works. Development finance suits ground-up builds and major conversions. The money is released in stages as the build progresses, and the lender looks at the value of the finished scheme.
If your project sits between the two, we will show you both options.
Is a bridging loan a good idea?
Bridging is fast and flexible, and it costs more than a mortgage. It works best when you have a clear exit and a deadline that a standard loan can’t meet. Your property is at risk if you can’t repay, so plan for your sale or refinance taking longer than expected. Read are bridging loans risky? and what happens if you don’t pay back a bridging loan on time.
If there is no deadline, a cheaper route may suit you better. A second charge mortgage or homeowner loan can raise money over a longer term without changing your existing mortgage. Compare your options in alternatives to bridging loans.
Why use ABC Finance for your bridging loan
We have arranged bridging finance since 2000 and work across the whole market, so a case one lender declines can go to another. There is no broker fee on bridging loans of £100,000 or more. Customers rate us 4.9 out of 5 on Reviews.co.uk. Read more about using a bridging loan broker.
We arrange bridging across England, Wales, Scotland and Northern Ireland.
Frequently asked questions
What does Martin Lewis say about bridging loans?
MoneySavingExpert’s guide to bridging loans describes them as short-term secured loans, usually repaid within 12 months, and warns that you could lose your home if you can’t repay. It says it is usually best to use a broker, because a broker can access products from a range of lenders.
How much can I borrow with a bridging loan?
Most lenders lend up to 75% of the property’s value. Offering a second property as extra security can take that higher, up to 100% of the purchase price. See how much can I borrow with a bridging loan?
Do I need a deposit for a bridging loan?
With most lenders capping the loan at 75% of the property’s value, you usually fund the rest yourself. With extra security, such as equity in another property, you may not need a cash deposit. See 100% bridging loans.
Can I get a bridging loan with bad credit?
Yes. Some lenders run separate ranges for borrowers with defaults, CCJs or missed payments, with rates from 0.80% a month. See bad credit bridging loans.
Can I repay a bridging loan early?
Yes. Many lenders have no early repayment charge, though some charge a minimum of one to three months’ interest. If your interest was retained, ask whether the unused part is refunded. See can you repay a bridging loan early?
Can I get a 2-year bridging loan?
Yes, on unregulated loans. Many lenders offer terms of up to 24 months for investment, commercial and development cases. A bridge secured on your own home is currently limited to 12 months.
Does ABC Finance charge a fee?
There is no broker fee on bridging loans of £100,000 or more. ABC Finance Limited is authorised and regulated by the Financial Conduct Authority, firm reference number 304671.
