Bridging finance for dream homes

Why speed matters when your dream home appears

When the perfect property appears, timing is everything. If your deposit is tied up in your current home or a mortgage offer will not land quickly enough, bridging finance can create a short, secured route to complete now and tidy up later. In 2025, that route is faster, cheaper, and more flexible than it has been for years.

The UK bridging market has grown sharply, with the total loan book expected to reach around £12.2bn by the end of 2025. Applications are buoyant as buyers prioritise speed and certainty. Average monthly rates have edged down to around 0.81% in Q2 2025, reflecting fierce lender competition, steady base rates, and lower average loan-to-value positions. Processing times have also improved, with recent quarters seeing average cases move from application to completion in nearly a month, and many completions finalised in roughly six weeks from offer.

For everyday buyers, the key advantage is control. A bridge can help you buy before you sell, snap up a below-market opportunity, or complete an auction purchase within strict deadlines. It can also fund refurbishments, conversions, or light works that a mainstream lender might not support at the outset. The same dynamics apply to landlords and investors, where investment purchases now represent a growing share of activity.

Understanding APR is not just about percentages - it is about knowing what you will pay in real terms.

With up to 75% LTV available - and average LTVs around the low-50s - bridging can unlock substantial capital without forcing a rushed sale. Most borrowers plan to exit by selling a property once the move is complete, while others refinance onto a buy-to-let or residential mortgage once refurbishments are finished and valuations improve.

A well-structured bridge should be measured, transparent, and time-bound. That means clear costs, a realistic exit, and an experienced broker coordinating valuation, legal work, and lender requirements. Do that well, and you turn a narrow window of opportunity into a successful completion.

Who benefits from a bridge?

Bridging suits UK buyers who need certainty on timescales and funds. If you want to buy your next home before selling your current one, a regulated bridge can give you the confidence to exchange and complete. If you are targeting auction lots, undertaking a refurbishment, or converting a property to a new use, bridging can provide the short-term capital mainstream lenders often will not release until works are done. Landlords looking to expand quickly - or homeowners eyeing a rare home at a compelling price - can benefit from the speed and flexibility to transact on their own terms.

Your bridging options at a glance

1. Buy-before-sale bridge - secure your new home while your existing property sells.

2. Auction purchase bridge - complete within tight deadlines after a winning bid.

3. Refurbishment bridge - fund light-to-medium works to unlock mortgageability.

4. Conversion bridge - support HMO or commercial-to-residential projects.

5. Chain-break bridge - keep your purchase moving when a chain stalls.

6. Investment purchase bridge - move quickly on a high-potential rental or flip.

7. Development exit bridge - refinance a build, release equity, or fund marketing.

Costs, timing, returns, and risks

Eligibility - what lenders look for

Eligibility is practical and evidence-based. Lenders typically review your property’s marketability, the loan purpose, your exit strategy, and your credit profile. Most will lend up to 75% LTV against a suitable UK residential or commercial property, with higher comfort when the exit is clear and time-bound. If you plan to sell, they will look at local comparables, agent appraisals, and days-on-market trends. If you plan to refinance, they will want to see repayment affordability, rental coverage for buy-to-let scenarios, or a realistic timeline for works and a new valuation. Where cases are regulated - for example, bridging your own home - rules are tighter and disclosure is critical.

Kandoo can help you position the case effectively, selecting lenders that suit your timeline, property type, and LTV. Expect standard identity and anti-fraud checks, valuation, legal due diligence, and sometimes a focus on refurbishment scope and costs. With credible documentation and an achievable exit, approvals can proceed swiftly.

From application to completion - the fast track

1. Outline your goal, budget, and exit in writing.

2. Provide documents - ID, property details, income and assets.

3. Get a tailored quote and indicative terms.

4. Instruct valuation and solicitors promptly.

5. Finalise underwriting and agree conditions.

6. Review facility letter and sign documents.

7. Funds release to complete your purchase.

8. Deliver exit - sale or refinance on schedule.

Weighing up the benefits and trade-offs

Read this before you commit

Bridging is a tactical tool, not a long-term mortgage. Treat the exit plan as non-negotiable and build a buffer for delays, works, or legal questions. If you are selling, stress test a slower sale or a modest price reduction. If you are refinancing, check serviceability, rental cover, and anticipated valuation after works. Ask for a full breakdown of interest, fees, and potential exit charges so you can calculate the total cost over your expected term. Finally, align professionals early - broker, solicitor, and contractor - to keep momentum. A cohesive team saves days and protects your completion date.

Alternatives if bridging is not the right fit

1. Let-to-buy mortgage - retain your current home, release equity, and buy new.

2. Further advance or remortgage - raise funds against existing equity.

3. Secured personal loan - smaller sums for light works or fees.

4. Family gift or private loan - reduce borrowing and monthly costs.

5. Developer or vendor finance - negotiate staged payments where appropriate.

Common questions, clear answers

Q: How quickly can I complete with a bridge? A: Many cases process in about a month, with completions commonly around six weeks from offer, subject to valuation and legal work.

Q: What will it cost each month? A: Recent averages are around 0.81% per month, but pricing depends on LTV, property type, condition, and your exit. Ask for a personalised illustration.

Q: How much can I borrow? A: Up to 75% LTV is common. Average LTVs have sat near the low-50s. Additional security can increase available funding.

Q: What exit strategies do lenders prefer? A: Sale of property is most common, with many buy-before-sale cases. Remortgage to residential or buy-to-let is also typical once works are complete and valuation supports it.

Q: Is bridging only for investors? A: No. Homeowners use regulated bridging to secure onward purchases, avoid chain breaks, or fund essential works before moving to a standard mortgage.

Q: Can I use a bridge for auctions and refurbishments? A: Yes. Auctions, refurbs, HMO conversions, and conversions from commercial to residential are well served in today’s market.

How Kandoo helps you move first

Kandoo is a UK-based retail finance broker. We match you to specialist bridging lenders that fit your timeline, property, and exit. You get clear terms, a realistic path to completion, and hands-on support coordinating valuation and legal steps. Ready to move first? Speak to Kandoo for a tailored bridging comparison and next steps today.

Important information

This guide is for information only and is not advice. Bridging loans are secured on property and may be repossessed if you do not keep up repayments. Rates, fees, and eligibility vary by lender and personal circumstances. Always consider independent advice before committing.