Bridging finance for buy-to-let investors

Why speed is winning for landlords right now

Bridging finance has moved centre stage for buy-to-let investors who need to act quickly. The latest market data shows why. In Q3 2025, contributors to Bridging Trends completed £209.4 million of bridging loans, up 4.9% on the previous quarter and the strongest since late 2024. Investment property purchases were the stand-out use case, rising to 20% of transactions amid tax and Budget speculation. Forecasts for the sector point higher, with the UK bridging loan book expected to reach around £12.2 billion by the end of 2025, supported by faster completions and higher loan-to-value options up to around 75% for the right cases.

Speed is the key appeal. Typical completion times are routinely measured in weeks rather than months. Recent data shows average timelines ranging from roughly 32 to 43 days, with some lenders quoting circa 38 days. Monthly pricing has sharpened as competition has intensified, with commonly reported rates between about 0.64% and 0.81% per month, depending on risk, LTV, and exit plan. For investors facing a slow sale, a chain break, or an auction deadline, that mix of pace and flexibility can make the difference between securing a high-yield asset or missing out.

This acceleration is playing out against a buy-to-let backdrop that looks steady rather than exuberant. UK Finance figures show new buy-to-let lending of £8.8 billion in Q2 2025, broadly flat year on year. Bridging fills the gaps: bridge-to-let strategies, refurbishment and EPC upgrades, and auction purchases where mortgage offers cannot arrive in time. Re-bridging is also on the rise, reflecting the need for liquidity when sales take longer than planned.

Understanding APR is not just about percentages - it is about knowing what you will pay in real terms. With bridging, the numbers can work if the purchase price, expected yield, refurbishment costs and exit are anchored in evidence. The right broker will pressure-test the plan and match you to lenders that can turn around underwriting and legals efficiently. As a UK-based retail finance broker, Kandoo works with a panel of bridging lenders to help you compare options, mitigate risks, and complete within your window.

In a time-sensitive market, certainty of funds can be as valuable as price.

Who should consider this?

Bridging suits UK landlords and property investors who need short-term capital to secure or improve a rental asset, then exit to a sale or a longer-term buy-to-let mortgage. If you are bidding at auction, tackling a light or medium refurbishment, converting a single let to an HMO, or freeing up equity ahead of a sale, a bridge can deliver speed when conventional underwriting would be too slow. It also suits portfolio landlords who want to capitalise on temporary discounts or time-limited opportunities. If your exit route is realistic and well documented, bridging can be a practical tool rather than an expensive last resort.

Your bridging routes at a glance

1. Bridge-to-let: buy with a bridge, refinance to a buy-to-let mortgage after works or seasoning.

2. Purchase bridge: short-term finance to complete quickly, exit by sale or refinance.

3. Refurbishment bridge: fund light to medium works that uplift value and EPC.

4. Auction finance: 28-day completion certainty when a mortgage will not land in time.

5. Re-bridging: replace an existing bridge when a sale or refinance is delayed.

6. Developer bridge: short-term capital for finish-and-exit or conversion to lettable units.

What it could mean for your bottom line

Do you qualify?

Lenders focus on three things: the asset, the borrower, and the exit. A standard buy-to-let house or flat in a liquid area is usually easier to place than unusual stock. Clear title, suitable construction, and a credible valuation report are essential. As the borrower, experience helps but is not mandatory if the case is strong and the exit is sound. Adverse credit is not an automatic barrier, though it usually affects price and LTV.

The exit is the anchor. For sales exits, lenders want evidence that pricing is realistic and that the property is marketable within the term. For refinance exits, a decision in principle from a buy-to-let lender, projected rental coverage, and proof of any required works can make approval smoother. Expect anti-money laundering checks, proof of deposit or equity, and a review of your business plan if refurbishment is involved. Kandoo can help package these elements so underwriters see a clear, deliverable pathway from day one.

Terms typically range from 3 to 18 months. Rates and maximum LTVs reflect the loan purpose, location, property condition, and borrower profile. If there are known planning or legal wrinkles, disclose them early so the case can be matched to a lender that understands how to mitigate the risks without derailing timelines.

From enquiry to funds - the practical steps

1. Share your target property, budget and exit strategy.

2. Broker sources lenders aligned to your timeline and risk.

3. Receive terms in principle and indicative pricing.

4. Instruct valuation and conveyancer with clear deadlines.

5. Final underwriting checks and legal due diligence.

6. Sign documents and agree drawdown mechanics.

7. Funds released to complete or start works.

8. Monitor milestones and prepare your exit early.

Quick benefits and trade-offs

Read this before you commit

Bridging is a tool, not a plan in itself. Treat the exit like a project milestone and prepare for it from day one. If your exit is a refinance, understand rental cover requirements and stress testing so the numbers do not fall short at the last hurdle. If you plan to sell, price conservatively and allow for slower completions. Build a contingency for works and professional fees. Keep paperwork tidy: title documents, planning, licences for HMOs, and EPC plans will all be scrutinised.

Market conditions in 2025 are supportive. Completion times have shortened, lender appetite has grown, and competition has trimmed rates. Investment purchases have taken a larger share of activity, and re-bridging is available where sales stall. Even so, the key discipline is unchanged: buy well, budget properly, and exit cleanly. A measured approach will keep costs proportionate to the opportunity.

If bridging is not the right fit

1. Standard buy-to-let mortgage with longer completion timeline.

2. Refurbishment buy-to-let products with staged releases.

3. Second charge loan on existing equity for deposit or works.

4. Joint venture or private investor funding with profit share.

5. Commercial mortgage for mixed-use or semi-commercial assets.

6. Development finance for heavy works or ground-up builds.

Frequently asked questions

Q: How much can I borrow and at what LTV? A: Many lenders advance up to around 70% to 75% LTV for straightforward properties. Lower LTVs can secure sharper pricing. Higher leverage may be available with additional security.

Q: What is the typical timescale to complete? A: Expect around 4 to 6 weeks from agreed terms to funds, depending on valuation availability, legal complexity, and how quickly documents are provided. Auctions can be prioritised.

Q: How are interest and fees structured? A: Interest is usually monthly and can be serviced or retained. Fees often include an arrangement fee, legal and valuation costs, and sometimes an exit fee. Always calculate the total cost of credit.

Q: What exit strategies do lenders accept? A: Common exits are sale, refinance to buy-to-let after works, or bridge-to-let products. You will need evidence that the exit is deliverable within the term.

Q: Can I use bridging for HMOs or refurbishments? A: Yes. Many lenders support light to medium works and HMO conversions, subject to planning, licensing, and a clear schedule of works with costings.

Q: What if my sale or refinance is delayed? A: Speak to your broker early. Options may include a term extension or a re-bridge. Both come with cost implications, so contingency planning is essential.

How Kandoo can help

Kandoo is a UK-based retail finance broker with access to a wide lender panel. We compare real terms, not just headline rates, package your case for fast underwriting, and coordinate valuation and legals to keep timelines tight. Whether you are bidding at auction or planning a bridge-to-let, we help you secure the right facility and exit with confidence.

Important information

This article provides general information, not personal advice. Bridging loans are secured against property and may be repossessed if you do not keep up repayments. Costs and eligibility vary by lender, asset and circumstances. Seek independent tax advice on Stamp Duty and rental income.