Bridging Loans for Property Developers
Property developers need speed and certainty. Bridging loans give you both. Whether you're buying at auction with a 28-day deadline, funding a light refurbishment before flipping, or breaking a chain to secure a below-market-value deal, bridging finance lets you act while competitors wait for mortgage approvals.
Developers can borrow against the current value or (with some lenders) the projected gross development value (GDV). This means you can gear up further on properties with strong upside. Interest is typically rolled up so there are no monthly payments eating into your project cash flow.
Key Benefits
- Secure auction lots within the 28-day completion deadline
- Fund light refurbishments with interest rolled up
- Borrow against GDV on refurb-to-sell projects
- Release equity from existing portfolio to fund new acquisitions
Frequently Asked Questions
Can I borrow against the after-works value?
Some lenders will advance against gross development value (GDV) for light refurbishment projects. Typically up to 65% of GDV, subject to planning and a schedule of works.
Do I need planning permission before applying?
Not necessarily. Many lenders will fund purchases subject to planning, especially where permitted development rights apply. Full planning is required for heavy development.
What deposit do I need?
Most bridging lenders require 25-35% deposit (65-75% LTV). Some specialist lenders offer up to 80% LTV for experienced developers with a strong track record.
How are bridging loan costs structured?
Costs include the interest rate (0.39-1.5% per month), an arrangement fee (typically 1-2% of the loan), a valuation fee, and legal fees for both your solicitor and the lender's.
Bridging Loans calculator
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Monthly interest
£2,125
Total interest
£25,500
LTV
56%
Rolled-up cost
£25,500
Illustrative estimate only, not a quote or financial advice. A broker will confirm exact terms based on your circumstances and lender appetite.
Related Funding Options
Bridging Loans UK
Bridging finance for UK businesses. Loans from £50k to £25M, with simple first-charge cases completing in 5 to 7 working days, and complex cases in 10 to 21 days. Compare rates from 50+ lenders.
Development Finance for Property Developers
Ground-up development finance for UK residential and commercial projects. Fund land acquisition, construction, and completion.
Commercial Mortgages for Property Developers
Long-term finance for property portfolios, commercial investments, and refinancing completed developments. Commercial mortgages for UK developers.
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Get matched with lendersCoreFi is a trading name of JG Core Ltd (Company #16218779, England & Wales). CoreFi acts as a commercial finance broker and does not provide regulated financial advice. All products described are unregulated business-to-business finance. Information on this page is for general guidance only and does not constitute a formal offer of finance. Terms, rates, and availability are subject to lender criteria and may change without notice.