Bridging finance
Short-term funding when timing matters.
Bridging finance is short-term borrowing used to complete a purchase or fund a project while longer-term finance or a sale is arranged. Tell us about your requirement and exit, and where appropriate we'll introduce you to an award-winning specialist commercial finance broker.
About 2 minutes · No obligation · UK enquiries
- No credit checkNothing is searched when you tell us about your deal.
- About two minutesOne question per screen, only the ones that apply to you.
- Award-winning brokersSuitable enquiries are introduced to an award-winning specialist commercial finance brokerage.
- Introducer, not a lenderUK commercial property only. Your enquiry is shared with your consent.
In plain English
What bridging finance is, and when it's used
A bridging loan is a short-term facility, typically measured in months rather than years, secured against property. It is designed to bridge a gap: between buying and selling, between purchase and refinancing, or between starting work on a property and it being ready for a term lender.
Because it is short-term and fast-moving, bridging finance generally costs more than a mortgage. Lenders focus heavily on the exit (how the loan will be repaid at the end of the term) and on the value of the security. A credible exit is usually the single most important part of a bridging enquiry.
Bridging can be secured against commercial, residential or mixed-use property, and can be used by companies as well as individuals. It is a tool for a specific situation, not a substitute for long-term finance, and specialists will often want to see that a term solution or sale is realistic before recommending it.
Typical scenarios
Where this type of finance tends to come up.
Auction purchase
Completing on a property bought at auction within the required timeframe, before refinancing onto a mortgage.
Refurbishment before refinance
Buying a property that needs work before a term lender would consider it, then refinancing once it is let or improved.
Chain break or quick completion
Securing a commercial property quickly while the sale of another asset completes.
Buying before planning
Acquiring a site or building while a planning application is pursued, with development finance or a sale as the exit.
Who it may suit
It may be worth exploring if…
- You need to complete quickly and a mortgage would take too long
- You have a clear, realistic way of repaying the loan within the term
- The property needs work before it can be let or refinanced
- You are buying at auction or in a time-pressured situation
- You have sufficient equity or deposit to support the borrowing
Before you start
Information likely to be useful
You don’t need documents to tell us about your deal, but having a rough idea of the following helps.
- The property being used as security and its approximate value
- How much you need to borrow and for roughly how long
- What the money will be used for
- How the loan will be repaid: sale, refinance or other
- Any work planned and its approximate cost
- When you need the funds by
- Who the borrower will be
Deal figures
Know your numbers before you enquire.
A specialist will ask about these ratios in the first conversation. Working them out now makes your Deal Snapshot sharper and the conversation quicker.
Deal figures
Work out your loan-to-value
Enter the value of the security and the gross loan you'd need. Bridging lenders typically quote against value, not cost.
Enter the figures above to see the ratios.
Arithmetic only. Lenders set their own limits, and FundingFrame does not assess eligibility or quote terms.
Use these figures in the checkerHow it works
- Step 1: Tell us about your dealAnswer a short series of questions about your property, finance requirement and timescale.
- Step 2: We review the requirementFundingFrame turns the information into a structured commercial finance enquiry.
- Step 3: Speak to a specialistWhere appropriate, the enquiry is introduced to an award-winning specialist commercial-finance partner.
FAQ
Questions about bridging finance
Straight answers. Anything specific to your circumstances is for the specialist to discuss with you.
Guides
Related guides
Plain-English reading if you want more background before you start.
- Bridging finance
How does bridging finance work?
Bridging loans are short-term, secured and built around an exit. This guide explains when they're used, how interest and fees usually work, and what lenders want to see.
7 Sep 20264 min read
- Bridging finance
Bridging finance vs commercial mortgage: which is right for your deal?
Two very different tools for two very different jobs. This guide compares bridging and commercial mortgages on purpose, speed, cost, term and assessment, and explains when each tends to be used.
7 Sep 20264 min read
- Development finance
How does development finance work?
Development finance funds the site and the build, released in stages as work progresses. This guide explains how it's structured, what lenders assess, how drawdowns work and how the loan is repaid.
7 Sep 20264 min read
Working to a deadline?
Tell us about the property, the amount and your exit. Where appropriate, we'll introduce you to an award-winning specialist commercial finance broker.
About 2 minutes · No obligation · UK enquiries