Buying and selling property doesn’t always go to plan. Deadlines, chain breaks, or unusual property types can all put pressure on your timeline. That’s where bridging finance comes in. It’s a short-term loan designed to help you move quickly and stay on track with your plans.
Whether you’re a homeowner trying to secure your dream property, a buy-to-let landlord, or a developer looking to fund your next project, timing is often critical. I specialise in bridging loans, so get in touch to see what’s possible. I have access to all the main providers to help clients across Essex and the South East.
What Is Bridging Finance?
A bridging loan is a short-term secured loan, typically repaid within 12 months. Unlike a standard mortgage, which can take weeks or months to arrange and comes with strict criteria, bridging finance is built for speed and flexibility.
With most bridging loans, the interest and costs can be rolled into the loan itself. This means you don’t need to make monthly repayments during the term. Instead, the interest is added to the balance and settled when the loan is repaid, either from the property sale or refinancing. This is called rolled-up interest, and it’s one of the reasons bridging is so useful for short-term projects. You get the funds you need quickly, without worrying about finding extra cash each month.
Common Situations Where Bridging Finance Helps
There are many circumstances in which a bridging loan can be helpful. I have shared some of the main examples below;
Buying at Property Auctions
Auction rules usually require completion within 28 days. Bridging finance ensures you have quick access to funds, allowing you to buy confidently and refinance with a standard mortgage later.
Chain Breaks in Home Moves
If your buyer pulls out but your onward purchase is lined up, a bridging loan can cover the shortfall and prevent you from losing your new home. As a specialist bridging broker, I can guide you through your options to keep your move alive.
Renovation or Development Projects
Mainstream lenders won’t finance properties without some basics, like a kitchen or bathroom. Bridging finance allows you to buy, complete works, and then refinance onto a longer-term standard mortgage.
Releasing Cash from a Pending Sale
Need funds for another purchase, but your current property hasn’t sold yet? A bridging loan gives you the liquidity to move forward without waiting.
Pros and Cons of Bridging Finance
Advantages
Speed
Funds can often be in place within a matter of weeks.
Flexibility
Useful for many scenarios, including auction and development projects.
Access
Bridging is ideal for investors and landlords who need to act fast.
Things to Consider
Costs
Interest rates are higher than standard mortgages.
Short term
Bridges are usually repayable within 12 months.
Exit plan
You must have a clear strategy, such as a sale or refinance. This is essential.
What Type of Borrowers Should Consider Bridging Finance?
- Home movers caught in a chain.
- Buy-to-let landlords and developers that need to act fast.
- Investors who are buying at auction.
- Property buyers who need a quick turnaround.
I work with all these client types regularly. So get in touch with me to discuss your bridging needs, and I’ll compare the market for you.
Alternatives to Bridging Finance
Remortgaging: Releasing equity from an existing property.
Secured loans: A longer-term borrowing option.
Personal loans: Sometimes possible, but usually unsuitable for large property transactions.
How to Decide If It’s the Right Move
The key to using bridging finance successfully is always having a clear repayment strategy. That might be either selling the property or refinancing it through a standard mortgage.
Working with a specialist bridging broker like myself means you’ll have expert guidance, whole-of-market access, and support in structuring the right deal. Always get advice before taking on secured lending, especially a bridge loan.
Get Expert Advice on Bridging Finance in Essex
Bridging finance can be a powerful tool, but it’s not for every situation. As a whole of market mortgage and bridging advisor, I’ve helped hundreds of clients across Essex and the South East make informed choices about short-term property loans.
If you’d like to explore whether a bridging loan is the right move for you, book a free consultation today.
FAQs
How quickly can I get a bridging loan?
Often, within a few weeks, depending on the lender and your circumstances.
What’s the main difference between a bridging loan and a mortgage?
A bridging loan is short-term and designed for speed. A mortgage is long-term with stricter lending criteria.
Can I get bridging finance with bad credit?
Yes, some lenders are flexible, but terms may be less favourable.
Do I need a deposit for a bridging loan?
Yes. Lenders often require equity or a deposit, with maximum loan-to-value typically to around 75%.
Always remember, your home or property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Bridging finance is a specialist product and not suitable for everyone. Always seek tailored advice for your situation.
Still think bridging finance could be right for you?
Book an appointment with me, Ian Smith, the mortgage and protection advisor. We’ll run through your requirements, tailor the right solution, and build a plan to move forward.
Get in touch to book an appointment. Any questions can be answered, and remember, no question is too silly to ask. Always get advice on short-term borrowing because the risks are high. Loans can be expensive when they’re not paid back, so having the right plan from the start is vital.
