Bridging finance for chain breaks

Move now when timing is everything

When a property chain wobbles, speed matters more than anything. A bridging loan is designed to let you buy first and sell later, so your next home or investment does not slip away. It is short-term, secured funding that can complete in weeks, not months, giving you the freedom to act decisively while the rest of the chain catches up. In the current market, that flexibility has turned from a nice-to-have into a genuine advantage.

Bridging finance has grown into a mainstream tool across Great Britain. The UK bridging loan book passed £10bn at the end of 2024 and is on course for roughly £12.2bn by the end of 2025. Application volumes are rising alongside improving processing times, which have recently hit record speeds. Average monthly rates have dipped around 0.81% in Q2 2025 at typical loan-to-value levels, supported by lender competition and a stable base rate environment. Lending remains resilient, with gross volumes steady and more borrowers using bridging for chain breaks, refurbishments and rapid purchases where traditional mortgages would be too slow.

What sets bridging apart is timing certainty. Recent processing averages as fast as 32 days, with completions commonly around 43 days from offer, and a large share of loans are regulated for residential use. That is crucial for homebuyers who need FCA protections while navigating complex chains. Typical LTVs sit around 54%, with many lenders comfortable up to 75% based on property value and exit plans. For exits, three-quarters of borrowers repay via property sale, while a meaningful proportion use buy-to-let remortgages once refurbishment or letting plans are in place.

Understanding APR is only part of the picture - in bridging, clarity on total cost, timeline, security and exit plan is what protects your bottom line.

With careful structuring and a realistic exit, bridging can turn a fragile chain into a completed move. If you are balancing school terms, a job relocation or an onward purchase with multiple bidders, the right facility gives you control over the timetable, not the chain.

Who benefits most

Bridging for chain breaks suits homeowners who have found the right property and cannot risk losing it to a faster buyer, but have not yet sold their current home. It also suits downsizers who want time to market properly and investors competing in fast-moving auctions or private sales. With regulated options forming a majority of the market, owner-occupiers can access consumer protections. Investors, meanwhile, benefit from quicker processing and the ability to pivot into buy-to-let or refurbishment strategies once the chain resolves.

In short, if your priority is speed, certainty and the flexibility to buy before you sell, bridging provides a measured way to move first and settle the chain afterwards.

Your pathways to proceed

1. Buy-before-sale bridge - secure the new property now, repay when your current home sells.

2. Chain-break bridge - inject funds to keep the chain intact and complete on schedule.

3. Refurbishment bridge - improve the property pre-sale to enhance value and marketability.

4. Auction bridge - meet 28-day deadlines, then refinance or sell post-completion.

5. Investment bridge - acquire quickly, then exit via buy-to-let remortgage.

Quick suggestion

• Speak to a whole-of-market broker to compare rates, fees and LTVs in real time.

Pounds and probabilities at a glance

Standout insight: Faster processing and competitive rates in 2025 mean better value for borrowers who prepare documents early and evidence a robust exit.

Can you qualify

Eligibility rests on three pillars: security, affordability and exit. Lenders will assess the property offered as security, its valuation and saleability, any planned works and your overall position. For regulated chain-break bridges secured on your home, you will be assessed under UK consumer rules with checks on plausibility of your exit and sensitivity to rate changes. For unregulated investment cases, lenders will focus on experience, the project plan and rental or sale assumptions.

Most borrowers will need a clear exit strategy, typically a confirmed property sale or a remortgage offer in principle. An average LTV around 54% is common, though up to 75% may be available for the right case. Clean credit is helpful but not always essential if the security and exit are strong. Proof of income may be required to cover monthly interest if it is not retained. Legal readiness is crucial: up-to-date ID, source-of-funds evidence, title information and searches accelerate completion.

Kandoo can support by comparing regulated and unregulated facilities across UK lenders, aligning product features with your timeline and exit plan. That includes exploring rolled-up interest to manage cash flow, flexibility on early repayment and whether fees can be added to the loan to preserve liquidity during the chain break.

From offer to keys - the steps

1. Share goals, property details and target completion date.

2. Provide documents: ID, income, sale listing, proof of funds.

3. Receive terms in principle with rate, LTV and fees.

4. Valuation and legal due diligence instructed immediately.

5. Lender issues formal offer subject to final checks.

6. Sign documents and arrange funds drawdown timetable.

7. Complete purchase and manage interest monthly or retained.

8. Exit via sale or remortgage within agreed term.

Advantages and trade-offs

Read this before you commit

A bridge should start with the exit and work backwards. If sale is your route, list promptly, price realistically and prepare for different scenarios, including a slightly longer marketing period. If remortgage is your plan, check product availability, rental stress tests and any refurbishment timeline. Build in contingency: allow for a term that extends beyond your best-case expectation and consider retained interest to avoid cash flow pressures during the chain break. Legal readiness is often the biggest accelerator, so line up solicitors who understand bridging and are available to act fast. Keep communication tight between agents, solicitors and your broker so funds can be drawn as soon as conditions are met.

Alternatives if bridging is not right

1. Let-to-buy mortgage - remortgage current home to a buy-to-let and release equity.

2. Deposit unlock via family gift or second charge on current home.

3. Developer part-exchange on new builds to remove chain risk.

4. Longer completion with seller - negotiate delayed completion or licence to occupy.

5. Short-term unsecured loan for minor gaps where security is not needed.

Next steps to strengthen your case

• Gather ID, proof of address, income and recent bank statements.

• Obtain an estate agent letter on saleability and expected timeline.

• Instruct solicitors early and request search packs immediately.

Common questions, clear answers

Q: How quickly can a bridging loan complete? A: Many cases complete within 32 to 43 days depending on valuation and legal readiness. Complex leases, title defects or slow searches can extend timelines.

Q: What will it cost per month? A: Typical monthly rates range from about 0.64% to 0.81%, influenced by LTV, property type and borrower profile. Fees usually include arrangement, valuation, legal and broker costs.

Q: How much can I borrow? A: Average LTVs sit around 54%, with maximums near 75% on suitable security. The property value, location and exit plan determine the lender’s comfort.

Q: What are the usual exits? A: Around three-quarters of borrowers exit via property sale. Others use remortgage routes, particularly buy-to-let, after stabilising income or completing light works.

Q: Is regulated bridging available for homeowners? A: Yes. A significant share of the market is regulated, offering consumer protections. Regulated refinance has also grown, reflecting demand from owner-occupiers.

Q: Can I roll up interest? A: Many lenders allow retained or rolled-up interest so you do not pay monthly. It increases the redemption balance, so factor this into your sale or refinance proceeds.

How Kandoo can help

Kandoo is a UK-based retail finance broker with access to a wide panel of bridging lenders. We match your timeline, LTV and exit strategy to the most suitable facility, explain total costs in plain English and coordinate solicitors and valuers for a faster completion. Speak with us today to compare options and secure your move with confidence.

Important information

This guide is for general information only and is not advice. Bridging loans are secured on property and may be regulated or unregulated. Your home may be repossessed if you do not keep up repayments. Always seek personalised advice before proceeding.