How long does a bridging loan last?

Most bridging loans run for between 3 and 18 months. Some lenders offer terms up to 24 months. The term depends on your exit strategy and how quickly you plan to repay, whether by selling the property, remortgaging, or using other funds.

What is an exit strategy for a bridging loan?

An exit strategy is your plan for repaying the loan. The most common exits are selling the property, remortgaging onto a standard mortgage, or using proceeds from another property sale. Lenders assess your exit strategy carefully before approving a bridging loan.

What is the difference between open and closed bridging loans?

A closed bridging loan has a fixed repayment date, usually because a property sale is already agreed. An open bridging loan has no fixed end date but typically must be repaid within 12 months. Closed loans often attract lower rates because they carry less risk for the lender.

Do I make monthly payments on a bridging loan?

Not necessarily. Many bridging loans allow you to roll up the interest, meaning it is added to the loan balance and repaid in full at the end of the term. Some borrowers choose to service the interest monthly to keep the overall cost lower.

How Does a Bridging Loan Work in the UK? A Step-by-Step Guide

Q: Can I get a bridging loan with bad credit?

Yes. Bridging lenders focus more on the property value and your exit strategy than on your credit score. Specialist lenders regularly work with borrowers who have adverse credit, though you may face higher rates and need a larger deposit.

Q: How much can I borrow with a bridging loan?

Most lenders offer bridging loans from around 50,000 pounds up to several million. The maximum loan-to-value is typically 70% to 75%, though some specialist lenders go higher if you are purchasing below market value.

You’ve found the perfect property. The catch? Your current home hasn’t sold yet, or the auction deadline is days away — and a standard mortgage simply can’t move fast enough. This is exactly the gap a bridging loan is built to fill.

So, how does a bridging loan work in the UK? In short, it’s a short-term loan secured against property — usually lasting 3 to 24 months — that gives you fast access to a lump sum while you wait for a longer-term solution, such as a property sale or a remortgage. You borrow now, repay later through a clear “exit”, and the speed is the whole point. Funds can land in your account in as little as 5 to 14 working days.

This guide walks you through the whole process from first enquiry to completion, what it costs in 2026, the different types on offer, and the one thing every lender will ask about before they’ll lend you a penny.

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What Is a Bridging Loan, in Plain Terms?

Think of it as a financial stepping stone. A bridging loan “bridges” the gap between money going out and money coming in.

Unlike a residential mortgage, which is repaid slowly over 25 years or more, a bridge is designed to be cleared quickly — often within 6 to 12 months. It’s secured against a property (yours, the one you’re buying, or another asset entirely), and lenders care far more about that security and your repayment plan than they do about your monthly payslips.

People reach for bridging finance in all sorts of situations:

Buying at auction, where you typically have just 28 days to complete
Stopping a property chain from collapsing when a buyer pulls out
Snapping up a place that’s “unmortgageable” — no kitchen, no bathroom — then refurbishing it
Releasing equity quickly for a business opportunity or a tax bill
Buying a new home before the old one has sold

The common thread is time. Where a traditional lender might take six to twelve weeks, a bridge moves in days.

How Does a Bridging Loan Work, Step by Step?

Here’s the journey most borrowers take, start to finish.

Step 1 — The enquiry. You (or your broker) approach a lender with the basics: what you need the money for, details of the property, how much you want to borrow, and crucially, how you plan to pay it back. Good lenders give indicative terms within hours.

Step 2 — The Decision in Principle (DIP). If your case stacks up, the lender issues a DIP. It isn’t a guarantee, but it sets out the likely loan amount, interest rate, fees and terms — so you know the deal is realistic before you spend money on valuations.

Step 3 — The formal application. Now you submit the full application with supporting documents: proof of ID and address, evidence of your exit strategy, property details, and information on any existing mortgages or charges. The paperwork is lighter than a residential mortgage, but it still needs to be spot on.

Step 4 — Valuation and legal work. The lender arranges an independent valuation of the security property (you usually foot that bill). At the same time, solicitors start the legal side — title checks, searches and loan documents. Instructing a switched-on solicitor early can shave days off the whole thing.

Step 5 — The formal offer. Happy with the valuation and the legals? The lender issues a formal offer confirming the amount, rate, fees and conditions. Read it carefully, ideally with your broker beside you.

Step 6 — Completion and drawdown. Once both sets of solicitors are satisfied and the conditions are met, the funds are released. For a straightforward case on a property with no existing mortgage, this can happen within a week of the offer. More complex deals — multiple properties, planning conditions — might take two to three weeks.

And that’s it. Money in, project underway. The clock on your repayment term now starts ticking — which brings us neatly to cost.

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What Does a Bridging Loan Cost in 2026?

Bridging interest is quoted monthly, not annually — a quirk that catches a lot of first-timers out. The loans are short, so a monthly figure simply makes more sense.

As of mid-2026, most bridging deals are priced between 0.55% and 1.5% per month. Where you land depends on your circumstances:

Prime cases (low loan-to-value, clean credit, a rock-solid exit) start from around 0.55% per month
Typical cases sit somewhere around 0.65% to 0.95% per month
Higher-risk cases (heavy refurbishment, adverse credit, an unclear exit) can run from 1.0% to 1.5% per month

To put that in context, 0.75% a month works out at roughly 9% a year — noticeably more than a standard mortgage. That’s the trade-off for the speed and flexibility.

With the Bank of England base rate sitting at 3.75% in June 2026, pricing has softened a touch from its recent peak. That said, your loan-to-value and the strength of your exit move your personal rate far more than the base rate ever will.

Interest isn’t the only cost, though. Budget for:

Arrangement fee — usually 1% to 2% of the loan
Valuation fee — depends on the property, often £500 to £2,500+
Legal fees — you cover both your own and the lender’s solicitor
Broker fee — typically around 1% if you use one (often money well spent)
Exit fee — less common now, but some lenders still charge one

You can usually pay interest monthly, have it rolled up (added to the loan and settled at the end), or retained (deducted upfront). Rolled-up interest keeps your cash flow free during the term, but costs a little more overall because it compounds.

Quick example: A £300,000 loan at 0.75% per month over six months racks up around £13,500 in interest. Add arrangement, legal and valuation fees, and the total cost might land somewhere near £20,000–£25,000. Always model the full picture, not just the headline rate.

Open or Closed? Regulated or Unregulated?

Two distinctions are worth understanding before you apply.

Open vs closed. A closed bridge has a fixed repayment date backed by a confirmed exit — say, a sale that’s already exchanged. Because the lender can see exactly when they’ll be repaid, closed bridges often come with slightly lower rates. An open bridge has no fixed end date, just a planned exit within the term. It’s more flexible, but usually a touch pricier.

Regulated vs unregulated. A regulated bridging loan is secured against a property you or a close family member live in (or will live in). It falls under FCA oversight, which gives you extra consumer protection. An unregulated bridge is used for investment or commercial property — buy-to-lets, developments and the like — and sits outside that framework. Interestingly, the rates for the two aren’t as far apart as most people expect.

Your Exit Strategy: The Part That Matters Most

If you take one thing from this guide, make it this: your exit strategy is everything.

Your exit is simply your plan for repaying the loan when the term ends. Lenders will scrutinise it harder than almost anything else — because a bridge with a weak exit is a bridge that overruns, and overruns are where things get expensive.

The two most common exits are:

Sale — selling the security property (or another asset) and using the proceeds to repay the loan
Refinance — switching onto a longer-term mortgage once the property is mortgageable, tenanted, or your situation has settled

Whichever route you choose, it needs to be realistic, evidenced and achievable within the term. Planning to refinance onto a buy-to-let mortgage? Get a mortgage in principle lined up early. A vague “I’ll sort it out later” won’t pass.

And if the exit fails? That’s the real risk. You could face steep default interest, extra fees, and ultimately enforcement action. So here’s the honest part nobody should skip over:

Your property may be repossessed if you do not keep up repayments or repay the loan as agreed. Think carefully before securing other debts against your home.

When Does a Bridging Loan Make Sense?

Bridging finance is a brilliant tool in the right hands — and an expensive mistake in the wrong ones.

It tends to work well when:

Speed genuinely matters (auctions, chain breaks, time-sensitive deals)
You have a clear, evidenced exit within roughly 12 months
The property can’t be financed conventionally — yet
The numbers still stack up after every fee

It’s worth pausing if:

Your exit is uncertain or relies on a single best-case outcome
You’re tempted to use it for long-term borrowing (it isn’t built for that)
The figures only work if everything goes perfectly

For some situations, an alternative might suit you better — a standard remortgage, a secured loan, or development finance for bigger building projects. A good broker will tell you honestly when a bridge isn’t the answer.

How UK Mortgage Finder can help

Bridging finance is a specialist corner of the market, and the right lender for your situation is rarely the one with the flashiest advert. In fact, many of the best deals are only accessible through brokers.

That’s where we come in. UK Mortgage Finder connects you — free of charge and with no obligation — to FCA-regulated brokers who work across the whole of the market. They’ll compare lenders on your behalf, stress-test your exit strategy, and structure the loan so it fits your plans rather than the other way round.

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Frequently Asked Questions

How long does it take to get a bridging loan in the UK?
Most bridging loans complete within 5 to 14 working days. Straightforward cases on properties with no existing mortgage can move even faster, while complex deals may take two to three weeks.

How much can I borrow with a bridging loan?
It depends on the value of your security and your exit, rather than your income. Loans often start from around £25,000 and can run into the millions, with most lenders working to a maximum loan-to-value of about 70–75%.

Do I need a deposit for a bridging loan?
Not in the traditional sense. Bridging is based on the equity in the property used as security. The lower your loan-to-value, the better your rate is likely to be.

Can I get a bridging loan with bad credit?

Possibly. Because bridging is asset-led, some lenders will consider applicants with adverse credit — though it may affect your rate and the strength of your exit, especially if you plan to refinance.

What’s the difference between a bridging loan and a mortgage?
A mortgage is long-term finance repaid over decades and assessed mainly on your income. A bridge is short-term, asset-led finance repaid within months through a defined exit — and it’s far quicker to arrange.

What happens if I can’t repay my bridging loan on time?
You may be able to extend the term or arrange a “re-bridge”, but both add cost. If there’s no realistic repayment route, the lender can charge default interest and ultimately enforce the security — which is why a solid exit matters so much.

Are bridging loans regulated by the FCA?
Some are. Bridges secured against a home you live in are regulated by the FCA. Those used purely for investment or commercial purposes are unregulated.

Is a bridging loan expensive?
Compared with a standard mortgage, yes — you’re paying for speed and flexibility. But for a short, well-planned term with a reliable exit, the total cost can be very reasonable relative to the opportunity it unlocks.

The bottom line

So, how does a bridging loan work in the UK? You borrow a lump sum quickly, secured against property, then repay it within a short term through a clear exit such as a sale or refinance. The process moves in days rather than weeks, the cost reflects that speed, and your exit strategy is the linchpin of the whole thing.

Used wisely, a bridge can keep a purchase alive, win you a property at auction, or unlock a project that conventional lending simply can’t reach in time. The trick is going in with your eyes open, your sums checked, and the right people in your corner.

If a bridging loan might be the answer for you, the next step is a quick, no-obligation chat with a specialist. Buying at auction on a deadline? Read our 28-day auction bridging guide next.

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Written by Jack Taylor

UK Mortgage and Finance Expert, breaking down mortgage options and helping UK homebuyers and landlords with clear, practical guidance.