Bridging finance for downsizing

Why downsizers are turning to bridging now

Bridging finance can help you buy your next, smaller home before your current property is sold. In today’s market, that timing advantage matters. Completions in the UK bridging sector reached £2.8 billion in early 2025, matching late 2024 highs during a period that usually slows. New applications have surged, and the average loan size has held steady, showing the market’s resilience and relevance for homeowners who want to move without waiting on a chain.

Costs have become more competitive too. Average monthly rates have eased to around 0.81% across the market, with leading options from roughly 0.65% to 0.75% depending on the case. Lower average loan-to-value ratios around the mid-50s, plus lender competition and a stable base rate backdrop, are helping. For many downsizers with solid equity, that combination makes bridging both accessible and cost-aware.

Speed remains a defining feature. Recent case data indicates an average 43 days from offer to completion, typically on 12-month terms, with most regulated loans exiting via the sale of the original home. Around 58% of bridging in 2025 has been regulated for owner-occupiers, which suits residential movers prioritising consumer protections and clarity.

Put simply, bridging can unlock your existing equity quickly, so you can secure your ideal smaller property now, then repay when your current home completes. In a market where loan books are forecast to keep growing through 2025 on the back of speed and flexibility, this is a pragmatic path for those who value certainty of timing.

Understanding the true cost matters: bridging is short-term finance. The key is a credible exit plan aligned to realistic sale timelines.

A well-structured, regulated bridge can be the difference between losing a preferred property and completing on time. With professional guidance, costs are transparent, risks are managed, and the process is measured - much like a smooth handover from one home to the next.

Is bridging right for you?

If you are downsizing and have meaningful equity in your current home, bridging can help you buy first and sell later, avoiding chain delays. It may also suit those targeting a specific property with a motivated seller or a short completion window, where a conventional mortgage would take too long. Homeowners who prefer certainty - locking in their next move without pressure - often find a bridge reassuring, provided they have a clear exit via sale or remortgage.

Conversely, if you have minimal equity, a weak credit profile, or uncertain sale prospects, you may be better served by alternatives such as agreeing a longer completion, porting your mortgage, or short-term renting between moves. A broker can help weigh the trade-offs before you proceed.

Your bridging routes to consider

1. Regulated purchase bridge for buy-before-sale moves.

2. Chain-break bridge to secure your chosen property quickly.

3. Auction purchase bridge with fast completion timelines.

4. Light refurbishment bridge to achieve sale-ready condition.

5. Regulated refinance bridge secured on current home.

6. Interest roll-up bridge to minimise monthly outgoings.

Cost, impact, returns, and risks

Who qualifies and what lenders look for

Eligibility revolves around three pillars: security, equity, and exit. Lenders will assess the property or properties used as security, checking condition, marketability, and location. Strong equity typically translates into a lower LTV and better pricing, with many downsizers fitting comfortably within the mid-50s LTV range. Your exit strategy is central: most regulated bridges repay when your existing home sells, so realistic valuation and timeframes matter. If servicing interest monthly, lenders review income and affordability. If rolling up interest, they test whether the net sale proceeds will comfortably clear the balance after fees.

Credit history is considered, but isolated issues do not always derail a case if the overall exit and equity are strong. Expect ID, proof of address, property details, and documents related to your sale and onward purchase. Because regulated bridging is overseen by consumer protection rules, the process includes suitability checks and clear disclosures. Kandoo, as a UK-based broker, can position your case with lenders who fit your profile, aiming for speed without compromising due diligence.

The process - from idea to keys in hand

1. Outline your goal, budget, and target property.

2. Speak to Kandoo for an options review.

3. Valuation instructed and documents gathered.

4. Indicative terms agreed, then full application.

5. Legals progress on both properties concurrently.

6. Lender offers issued and signed.

7. Funds released to complete your purchase.

8. Repay on sale or agreed exit.

Advantages and trade-offs

What to check before committing

Before proceeding, pressure-test your exit. Obtain realistic valuations for your current home, not just optimistic agent listings, and consider the effect of price reductions on your net sale proceeds. Build a timeline buffer: although many bridges complete in around 43 days and offer terms up to 12 months, sales can overrun, so plan accordingly. Review the total cost including arrangement fees, legal and valuation expenses, and any minimum interest period. If your income is uncertain, consider rolling up interest, but remember this increases the final balance. Finally, read lender conditions carefully, especially consent-to-let, refurbishment limits, or any requirement tied to your onward purchase.

A clear exit plan turns bridging from a risk into a route to certainty.

Alternatives that might suit

1. Port your existing mortgage to the new property.

2. Negotiate a longer completion with exchange of contracts.

3. Let-to-buy: remortgage current home and buy new with BTL.

4. Use an offset facility or secured line of credit.

5. Family-assisted loan or gifted deposit for short term.

6. Equity release if 55+ and advice supports suitability.

7. Sell first, rent short term, then buy in cash.

Frequently asked questions

Q: How much can I borrow when downsizing? A: It depends on your property value, equity, and LTV. Many regulated bridges for homeowners sit around the mid-50s LTV, though higher is possible subject to lender and case specifics.

Q: What are typical bridging rates in 2025? A: Market averages have moved towards roughly 0.81% per month, with sharper pricing from about 0.65% to 0.75% for strong cases. Your exact rate reflects LTV, property, and profile.

Q: How long will it take to complete? A: A well-prepared, straightforward case can complete in about 43 days from offer, although timing depends on valuations, legal work, and responsiveness across all parties.

Q: Do I have to make monthly payments? A: Not necessarily. You can service interest monthly or roll it up to be paid at redemption. Rolling up preserves cash flow, but the final balance will be higher.

Q: What is the most common exit? A: Sale of the original property is the typical exit for downsizers, with many regulated cases structured precisely for buy-before-sale moves.

Q: What happens if my sale is delayed? A: Speak to your broker early. Options include extending the term, refinancing, or adjusting marketing strategy. Build buffer time into your plan to reduce stress.

How Kandoo makes downsizing simpler

Kandoo is a UK-based retail finance broker. We compare regulated bridging options across a panel of lenders, prioritising speed, transparent pricing, and a credible exit. We help you shape the right LTV, choose between servicing or rolling interest, and coordinate valuations and legals for a timely completion. Speak to us for a no-obligation review and tailored recommendations.

Important information

Bridging finance is short-term and secured against property. Your home may be repossessed if you do not keep up repayments or cannot meet the agreed exit. Rates, fees, and eligibility vary by lender and individual circumstances. Seek personalised advice before proceeding.

Next steps: request an illustration, confirm your exit plan, and book a valuation.