Bridging finance for expats

Updated

Dec 13, 2025 9:15 PM

Written by Nathan Cafearo

A clear guide for UK-bound expats on bridging loans - rates, timelines, risks, and options - plus how Kandoo helps secure fast, flexible finance.

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Moving quickly in a maturing market

Bridging finance has moved from niche to mainstream, and it is doing so at speed. The UK loan book passed £10bn and is on course for around £12bn by the end of 2025. Completions hit fresh records as borrowers prioritise certainty and fast execution. For expats, that shift is meaningful. When you are buying at auction, refurbishing to mortgage later, or relocating and need to buy before your sale completes overseas, time is not a luxury.

Average completion times are measured in days, not months - around 38 to 43 days is now typical - making bridging far quicker than standard mortgages. Monthly rates have trended down towards 0.64% to 0.81% as base rates stabilise and lender competition intensifies. Loan-to-value options of up to 75% are available with the right security and exit plan, while average LTVs sit closer to the low fifties. Tenors commonly span 12 to 15 months, giving room for delayed sales or slower remortgage approvals. Larger loans are increasingly common as well, with more than half of new deals now above £600,000.

What does that mean in practice? Most borrowers exit via a property sale, and a significant share of loans are regulated for residences - useful if you plan to live in the UK property during the bridge. Lenders have broadened product ranges too, including options suited to light-to-heavy refurbishments, HMO conversions, commercial-to-residential schemes, green improvements, and even selected no-valuation processes for speed where criteria allow.

Understanding APR is not just about percentages - it is about cash outcomes. A bridge is a short-term tool. You pay interest monthly or rolled up, plus fees, in return for speed and flexibility. If the numbers stack up - for example, securing a discounted purchase or avoiding a chain break - the premium can be justified. The key is clarity on your exit, realistic timings, and rigorous budgeting. With the market deepening and broker competition increasing, expats can now access a more reliable, transparent path to short-term property finance in the UK.

Who benefits most

If you are an expat purchasing in England, Scotland, or Wales and need certainty on timelines, bridging can solve the gap between intention and completion. It suits buyers who must move quickly - for instance, an auction purchase with 28-day completion, or a buy-before-sale where your overseas property is still on the market. It works for investors refurbishing to refinance, converting to HMO, or releasing funds to secure a second purchase while a remortgage catches up. It also suits returning residents who plan to live in the property short term before transitioning to a standard mortgage. If your income profile is complex, or your target property is temporarily unmortgageable, a bridge can provide a clear route to ownership while you put the longer-term finance in place.

Your bridging options at a glance

Regulated residential bridge - occupying or intending to occupy the property.
Unregulated investment bridge - buy-to-let, flips, or commercial plans.
Auction finance - rapid completion within strict timelines.
Light refurbishment - cosmetic works with minimal structural change.
Heavy refurbishment - structural works or change of use.
Bridge-to-let - acquire now and exit to a buy-to-let remortgage.
Development exit - repay build finance while marketing units.
Green improvement bridge - funding for energy upgrades where available.
No-valuation or desktop valuation products - selected cases for speed.

Costs, impact, returns, and risks

Aspect	What it means	Typical figures	Impact for expats
Interest	Monthly cost or rolled-up charge	0.64% - 0.81% per month	Budget for total months plus contingency
LTV	Portion of property value financed	Up to 75% LTV	Higher leverage with strong security and exit
Fees	Arrangement, broker, valuation, legal	1% - 2% plus costs	Factor fees into net proceeds and ROI
Term	Duration before exit required	6 - 15 months common	Allows sale or remortgage timelines
Exit	How the bridge is repaid	75% sale, 19% BTL remortgage	Choose a credible, timed plan
Speed	Time to complete funds	c. 38 - 43 days	Ideal for auctions and chain breaks
Property type	Condition and use	Standard, refurb, HMO, mixed-use	Tailor product to works and strategy

Can you qualify

Eligibility depends on the property, the numbers, and your plan. Lenders assess the security value, requested LTV, and the plausibility of your exit strategy. If you are buying before selling, they will want evidence of your overseas property’s marketing status, likely sale value, and timing. For auction purchases, the legal pack, completion date, and any works required will be central. Where refurbishment is involved, a schedule of works, budget, and contractor readiness matter. If you intend to occupy the property during the term, the loan will usually be regulated and assessed accordingly. Credit history is relevant, but recent bridging decisions place heavy weight on asset quality, affordability of interest, and a realistic end plan. Kandoo can help you present the case coherently - aligning valuation, legals, and lender appetite - so the timeline aligns with your completion deadline.

From enquiry to funds in simple steps

Share your property, budget, and exit plan details.
Get indicative terms and confirm the target timeline.
Provide documents - ID, proof of funds, property info.
Instruct valuation and legal due diligence concurrently.
Finalise offer, agree fees, and sign loan documents.
Draw down funds to meet exchange or completion.
Complete works or marketing, monitor milestones monthly.
Exit via sale or remortgage before term end.

Advantages and trade-offs

Pros	Cons
Fast completion compared with mortgages	Higher cost than long-term loans
Flexible on property condition and use	Short term - strict exit deadlines
High LTV potential up to 75%	Fees increase total cost of finance
Works for auctions and chain breaks	Valuation or legals can still delay
Options for refurbishments and HMOs	Market shifts can affect exit timing

What to check before you commit

Bridging rewards preparation. Start by pressure-testing your exit strategy: if your plan is to sell, consider a realistic time-to-sell for the local market and add a buffer. If you intend to refinance, check lender criteria for loan size, LTV, stress testing, and property condition after works. Build a line-item budget for fees, valuation, legal costs on both buy and sell, and any early repayment or extension fees. Confirm whether interest will be serviced monthly or retained in the facility. Timeline risk matters - even in a fast market, title issues or searches can slow completion, so instruct your solicitor early and keep communication tight. Finally, run a downside scenario on value and timing. If the sale takes two months longer or achieves slightly less than forecast, make sure the deal still makes sense.

Alternatives if bridging is not right

International or expat mortgage with longer processing times.
Remortgage an existing property to release equity first.
Secured loan or second charge against another asset.
Joint venture equity partner to reduce debt reliance.
Vendor financing or delayed completion by agreement.
Personal loan for small, time-limited top-ups.

Frequently asked questions

Q: How fast can a bridge complete? A: Many deals complete in roughly 4 to 6 weeks, depending on valuation and legal complexity. Auction timelines can be met with early instruction and responsive solicitors.

Q: What monthly rate should I expect? A: Market averages have fallen toward 0.64% to 0.81% per month, influenced by competition, LTV, and the asset. Strong security and a clear exit often secure sharper terms.

Q: Can I live in the property during the bridge? A: Yes, if the loan is regulated and the lender agrees. A large share of recent bridges are regulated for properties occupied by the borrower or their family.

Q: What is a typical exit strategy? A: Most borrowers exit via a property sale. Others refinance to buy-to-let or residential mortgages once refurbishment is complete or income and documents meet lender criteria.

Q: How much can I borrow as an expat? A: With the right security, borrowing can reach up to 75% LTV. Larger loans are common, and many lenders will consider £600,000 and above with robust documentation.

Q: Do I need UK income to qualify? A: Not always. Lenders focus on asset value, affordability of interest, and the exit plan. Foreign income can be accepted with proper evidence and currency considerations.

How Kandoo can help

Kandoo is a UK-based retail finance broker that understands expat timelines. We scan multiple lenders, compare rates, LTVs, and fees, and coordinate valuation and legals to hit your completion date. Whether you need a regulated residential bridge or an investment solution, we structure terms around your exit and budget. Speak to us for tailored options and a clear path to funding.

Important information

This guide is for information only and is not advice. Bridging loans are secured against property and may be repossessed if you do not keep up repayments. Terms depend on your circumstances and may change. Seek personalised advice before committing.