Bridging finance for cash flow gaps

Why quick finance is surging

Bridging finance has moved centre stage because timing now drives value. When a property comes to market at the right price, waiting on a traditional mortgage or a slow sale can cost you the asset altogether. Recent UK data shows why momentum matters: completions hit a record in late 2024, and the total UK bridging loan book is forecast to reach around £12.2bn by the end of 2025. Gross lending in Q3 2025 climbed again, matching activity last seen a year earlier, with completion times typically circling the 38 to 43 day mark. That speed is the difference between securing a deal and watching it slip away.

Costs have also been edging down. Average monthly rates dipped to around 0.81% in Q2 2025, with competitive quotes in the market as low as the mid-0.6% range for strong cases. At the same time, lenders have been comfortable at higher loan-to-value levels compared with traditional products, with some reaching up to 75% LTV. For buyers and owners facing short-term gaps - buying before selling, chain breaks, urgent refurbishments, or exits from slow sales - bridging has become a practical tool rather than a last resort.

Investment-driven demand is particularly strong. In early 2025, investment purchases took a larger share of bridging use, signalling that landlords and developers are deploying short-term funds to capture yields and add value. Regulated bridging - for residential homeowners - has also grown steadily in recent years, supporting common scenarios such as buying a new home before a sale completes.

Speed, flexibility, and focused timeframes define modern bridging - used correctly, it can unlock opportunities without locking you in.

Who benefits right now

Bridging suits UK borrowers who value speed and certainty over a short horizon. If you need funds for a defined period - typically a few months - and you have a clear exit strategy, bridging offers a streamlined route. Home movers facing chain delays, buyers seeking to complete before competitors, and investors pushing through light refurbishments are prime candidates.

It also helps where traditional lenders struggle with tight timelines or nuanced circumstances. If your long-term mortgage is agreed in principle but completion will take weeks, a bridge can carry you there. Equally, if your sale is proceeding slowly, a re-bridge can maintain liquidity so you can avoid distressed disposals.

Ways you can use a bridge

1. Buy before you sell to avoid chain breaks and move on your timeline.

2. Secure an auction property with a 28-day completion window.

3. Fund light to medium refurbishments to boost value pre-refinance.

4. Bridge a development exit while sales complete at best price.

5. Consolidate short-term debts against property for breathing space.

6. Re-bridge if a sale stalls and you need extra time to complete.

Cost, impact, returns, and risks at a glance

Can you qualify?

Lenders weigh the security, your exit plan, and your profile. Security is typically UK residential or commercial property, with independent valuation setting the lendable amount. Clean title and straightforward legals help timescales. For many cases, income documents are secondary to the strength of the asset and exit, though affordability checks apply on regulated loans. Expect maximum LTVs up to 75% for strong properties, with lower caps for complex assets or works. If you are buying before selling, evidence of your onward mortgage decision in principle, sale progress, or marketing status will support the case.

Kandoo, as a UK-based retail finance broker, can match you with lenders aligned to your timeline and profile. We will clarify whether your loan is regulated or unregulated, outline costs up front, and stress-test your exit strategy, such as sale comparables or refinance options. A pragmatic plan - including a time buffer - is often the difference between approval and delay.

From enquiry to completion

1. Share your property details and target completion date.

2. Confirm loan amount, LTV, and intended exit route.

3. Receive indicative terms and full cost breakdown.

4. Instruct valuation and provide required documents.

5. Solicitors progress legal due diligence and title checks.

6. Final offer issued once valuation and legals completed.

7. Draw down funds and complete your purchase or project.

8. Execute your exit by sale or refinance on schedule.

The upsides and trade-offs

Read this before you sign

Bridging should be used with a defined plan and realistic buffers. Build your numbers using conservative sale timelines and refinance rates; markets can move, and transactions can stall for reasons outside your control. Check that the property’s legal position is clean, especially where lease lengths, title restrictions, or planning issues exist. If you are relying on refinance, speak to a broker early to test affordability and product availability. Finally, read all fee schedules and interest calculations carefully, including default rates, extension costs, and minimum interest periods.

A strong exit strategy turns a short-term facility into a low-drama solution.

Alternatives worth weighing up

1. Agreement in principle on a term mortgage with a fast-track lender.

2. Second charge mortgage if the first charge lender consents.

3. Development finance for heavier works beyond light refurbishment.

4. Personal or business loans for smaller, unsecured requirements.

5. Vendor financing or delayed completion agreements with the seller.

Your questions, answered

Q: How long will it take to complete? A: Typical completion times are around 38 to 43 days. With early valuation and responsive legals, auction timelines can be met in many cases.

Q: What will it cost each month? A: Market averages have been around 0.81% per month recently, with sharper quotes available for strong security and lower LTVs. Fees apply and should be budgeted.

Q: How much can I borrow against the property? A: Expect practical caps between 55% and 75% LTV depending on property type, condition, and exit route strength.

Q: Is bridging suitable for homeowners? A: Yes. Regulated bridging has grown steadily and commonly supports buy-before-sell or chain repair, subject to affordability and consumer protections.

Q: What if my sale is delayed? A: Re-bridging exists and has been used more often as sales slow. Always plan contingencies and speak to your broker early if timelines slip.

Q: Can I roll up interest? A: Many lenders allow retained or rolled-up interest, reducing monthly cash outlay. This affects maximum LTV because interest is funded up front.

How Kandoo helps you move first

Kandoo connects you with UK bridging lenders that fit your timeline, property, and exit plan. We benchmark rates and fees, steer you through valuation and legal steps, and anticipate pitfalls that slow completions. Speak to us today for indicative terms and a clear timetable so you can act decisively.

Important information

This guide is for information only and is not personal advice. Bridging loans are secured on property and may be repossessed if you do not keep up repayments. Terms vary by lender and eligibility. Seek regulated advice where required.