Bridging Loans UK
By Joshua Giles, Founder and Director · Reviewed by the CoreFi credit team
Last updated 20 July 2026
CoreFi is a broker, not a lender. We do not set rates and lenders make all credit decisions.
In short: A bridging loan is short-term finance secured against UK property or land, from £50k to £25M, designed to be repaid within 1 to 24 months through a sale or refinance. Rates typically start around 0.5% per month and depend on the property, LTV and exit; the lender sets the rate. We are a broker and place your case across a broad panel of bridging lenders.
A bridging loan is a short-term first or second charge against property, designed to be repaid within a defined window, usually via a sale or refinance. The lender advances a lump sum on day one, interest accrues monthly (typically 0.5% to 1.5% pcm) and is either rolled up into the loan or serviced monthly, and the whole debt plus rolled interest is cleared at exit.
The exit strategy is the single thing a bridging lender will interrogate hardest. "I'll refinance onto a mortgage" holds up if the numbers stack. "I'll sell the property" is fine if you can evidence demand and a realistic timeline. What kills deals is a vague exit, a term that is too short for the plan, or an LTV that leaves the lender exposed if values dip. We have watched lenders walk away from perfectly good security because the exit did not read as credible on paper.
Common uses are auction purchases with a 28-day completion clock, chain breaks where the onward sale has slipped, light refurbishments before a remortgage, and land acquisition while planning is awaited. Rates start from 0.5% per month. Terms run from 1 to 24 months. Lenders will go to 65 to 75% LTV on most residential and commercial security, with some pushing to 80% for experienced borrowers on clean security.
No broker can promise a rate before a lender has seen the case, and anyone who does is guessing. What we do is tell you quickly which lenders are actually open to your security type, your exit, and your timeline, then get the right one instructed fast.
Key Benefits
- Simple first-charge cases against standard residential or commercial property can complete in 5 to 7 working days, fast enough for most auction deadlines
- Borrowing from £50k to £25M means bridging works for a single buy-to-let chain break just as it does for a multi-site land acquisition
- Rolled-up interest means no monthly cash drain during the term, which matters on a refurbishment where your money is tied up in the works
- Second charge lets you unlock equity in a property you cannot or do not want to refinance right now, without disturbing the first-charge lender
Frequently Asked Questions
How quickly can a bridging loan complete?
Simple first-charge bridging against standard security can complete in 5 to 7 working days if solicitors are instructed immediately and the valuation is ordered the same day. Second charge cases, large loans, or non-standard security such as mixed-use, land without planning, or distressed property realistically take 10 to 21 days. The bottleneck is almost always the legal process, not the lender's credit decision.
What security is needed for a bridging loan?
Bridging lenders take a legal charge over property or land. Residential, commercial, semi-commercial, and land are all accepted. LTV is typically 65 to 75% of current market value, with some lenders going to 80% for experienced borrowers on clean residential security. Second charge is available, but it is the combined LTV across both charges the lender is underwriting to.
Can I get a bridging loan with bad credit?
More often than you would expect, yes. Bridging lenders are predominantly security-led, so a clear exit and a solid asset can outweigh a patchy credit file. Adverse credit is looked at case by case. You will pay more, and some lenders will not touch it, but we know which ones will and route the case accordingly. Nothing here is a guarantee of approval; that is the lender's decision on your specific file.
What is an exit strategy and why does it matter so much?
The exit is how you repay the loan at the end of the term. Sale, remortgage, and development completion are the usual routes. Lenders assess whether your exit is realistic within the term. A 12-month term with a sale exit on a property in a slow market is a harder sell than a 6-month term with a mortgage offer already in progress. Nail the exit before applying and the whole process moves faster.
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.
Work out your numbers
Related Funding Options
Bridging Loans for Property Developers
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Bridging Loans for Construction Companies
Short-term bridging finance for UK construction companies. Secure land, cover retention gaps, and move on sites before the high street bank has issued a decision in principle.
Commercial Mortgages UK: Buy or Refinance Business Property
Long-term finance for buying or refinancing commercial property in the UK. We place commercial mortgages on offices, warehouses, retail units, and mixed-use premises for limited companies.
How Bridging Loans Work
How bridging loans work: day-one advance, first vs second charge, rolled-up interest, LTV against value, term and exit. UK commercial finance explained.
Bridging Loan Rates and Costs Explained (UK)
Bridging loan rates and costs in the UK explained: monthly interest (rolled vs serviced), arrangement, valuation, legal and exit fees, with a worked example.
Bridging Loan Exit Strategies
How bridging loan exit strategies work: sale, refinance and development take-out, what makes an exit credible to lenders, and what kills a deal.
Bridging finance by location
Lender appetite varies by city and region. If you would rather start from where your business is based, these local guides cover the same funding with the local picture.
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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.