Bridging Finance
Fast, short-term property finance for auctions, refurbishments and chain breaks, arranged exit-first so you only proceed when the deal genuinely works.
- Agreement in Principle in 24 hours
- Over 100 lenders
- Whole-of-market advice
Bridging finance is a short-term loan secured against property, used when speed or a specific situation rules out a standard mortgage. It buys you time to complete, refurbish or refinance. We start with the exit, not the loan, and we tell you straight whether the deal works before you commit a penny.
Why investors choose us for bridging
Exit strategy comes first
Every bridge is assessed on how you will repay it. We validate and stress test your exit, refinance or sale, before any loan is drawn down. If the exit does not work, the deal does not work.
Speed when it counts
Straightforward cases can complete in roughly one to two weeks, faster for urgent deals where a desktop valuation works. We line up lender, valuer and solicitor in parallel.
The right lender for the deal
Auction specialists for tight deadlines, heavy refurb lenders for complex works, and specialist lenders for title splits. We match the lender to your deal type, not the other way round.
Realistic numbers, not best case
We pressure test rental and valuation assumptions against real exit lender criteria. No optimistic figures, just numbers that stand up when it matters.
Roll up the interest
Interest is charged monthly, but most borrowers roll it into the loan rather than pay it each month, so nothing is due until the bridge is repaid.
One adviser, start to finish
The same expert structures your case, identifies the exit lender and keeps the whole deal moving through to drawdown and beyond.
How we structure a bridging deal
Start with the exit
Before anything else we agree how the deal will exit, which lenders will accept the finished property, and what valuation and rental assumptions apply.
Match the lender to the deal
Auction specialists for tight deadlines, heavy refurb lenders for complex works, specialist lenders for title splits and legal restructuring. The lender fits the deal, not the reverse.
Stress test the exit before proceeding
Refinance viability confirmed, expected valuation assessed, and rental income checked against the exit lender’s stress test. Only then do we recommend you proceed.
Align timeline and funding
We match the works duration to the lender term, build in extension flexibility and plan a contingency from the start, so a slip in timing does not become a crisis.
The exit strategy is everything
Every bridging loan is assessed on how you will repay it, not just how you will buy. The exit is the single most important thing we validate before arranging any bridge. Get it right and bridging is a powerful tool. Get it wrong and the costs escalate fast.
Refinance onto a mortgage
The most common exit. Refinance onto a buy-to-let, HMO or commercial mortgage once the property is in the right condition and tenanted. This must be modelled in advance against real lender criteria.
Selling the property
Exit by sale, whether at auction, private sale or to another investor. This needs a realistic valuation and sensible market assumptions, never best-case numbers.
Restructuring the asset
Splitting titles, reconfiguring or repositioning the asset before refinancing. This needs careful planning of valuation, timing and lender criteria.
Development exit
Refinancing a finished build onto a term product to repay development or bridging finance, releasing equity or holding the asset for income.
When bridging finance makes sense
Bridging is a specialist tool for specific situations where speed or condition rules out a standard mortgage. These are the most common reasons our clients use it.
Auction purchases
Auction completions are usually required within 28 days, far too fast for a standard mortgage. A bridge funds the purchase, then you refinance or sell. We pre-qualify the case before you bid.
Chain breaks
Buy before you sell. A bridge lets you secure your next property without losing it to a collapsed or slow-moving chain, repaid when your existing home sells.
Refurbishment and conversion
One of the most common uses, including the buy, refurbish, refinance strategy. Lenders treat light cosmetic work very differently from heavy structural refurbishment.
Below market value and un-mortgageable
Properties that a mainstream lender will not touch, whether priced below market value, lacking a kitchen or bathroom, or with short leases, often work for a bridge.
What bridging typically costs
Interest is charged monthly, not annually, usually between 0.55% and 1.5% per month depending on the loan-to-value, charge order and risk. Expect an arrangement fee of around 1% to 2% of the loan, plus valuation and legal costs, and sometimes an exit fee. Most borrowers roll the interest into the loan, so nothing is due until it is repaid.
Exit strategy confirmed, deal structured
Send us the property, the works and your exit plan. We will tell you straight whether bridging is the right route, and show you the alternatives if it is not.
Bridging finance is not just about getting in. It is about getting out cleanly.
Bridging finance questions
How much does a bridging loan cost?
Bridging interest is charged monthly, not annually, typically between 0.55% and 1.5% per month depending on the loan-to-value, the charge order and the risk. There is usually an arrangement fee of around 1% to 2% of the loan, plus valuation and legal costs, and sometimes an exit fee. Most borrowers roll the interest into the loan rather than pay it monthly, so nothing is due until the loan is repaid.
How quickly can bridging finance complete?
Straightforward cases can complete in roughly one to two weeks, and urgent cases faster where a desktop valuation and search indemnity are acceptable. More complex cases take longer, so it is best to start early, especially if you are working to an auction deadline of 28 days. We line up the lender, valuer and solicitor in parallel to keep things moving.
Do I need a deposit for bridging finance?
Yes. First-charge bridging is commonly available up to around 75% of the property value, so you would typically contribute at least 25% plus fees. Lower loan-to-value usually unlocks the best monthly rates. Where works will add value, some lenders also fund a share of the refurbishment costs against the projected end value.
Can I use bridging finance for refurbishment?
Yes. Refurbishment and conversion are among the most common uses, including the buy, refurbish, refinance (BRR) strategy. Lenders treat light cosmetic work very differently from structural or heavy refurbishment, so the scope of works shapes which lender fits. We confirm the works and the exit before the loan is arranged.
What happens if I cannot exit the loan?
This is the single most important risk in bridging. If the exit slips, the lender can apply default interest, which is expensive, and ultimately the property can be repossessed. That is exactly why we validate your exit strategy, whether refinance or sale, before any bridge is drawn down, and stress test it against realistic timing and lender criteria.
Can bridging finance be used for auction purchases?
Yes, this is one of the classic uses. Auction completions are usually required within 28 days, which is far too fast for a standard mortgage, so a bridge funds the purchase and is then refinanced or the property sold. We pre-qualify the case before you bid so you know the funding is realistic.
Let us talk through your options
Your first consultation is free and there is no obligation.
Albion Financial Advice provides regulated mortgage and insurance advice where applicable. Your home may be repossessed if you do not keep up repayments on your mortgage. Wills, estate planning and some forms of business and buy-to-let insurance are not regulated by the Financial Conduct Authority. Information on this page is general only and does not constitute financial advice.