Bridging finance for extensions

The fast track to funding your home extension

A well-planned extension can add space and value - but waiting months for a traditional mortgage or remortgage can stall progress and cost opportunities. Bridging finance offers a short-term solution to move quickly, then refinance or sell when it suits you. In 2025 the UK bridging market is both larger and faster than ever, with completion times averaging 43 days and the fastest recent quarter closing in around 32 days. That speed has made bridging a practical option for homeowners who want to buy before they sell, fund an extension ahead of longer-term finance, or plug a short-term gap during a complex move.

Rates have become sharper too. Average monthly pricing has dipped to around 0.81% amid steady base rate conditions and competitive lenders. Lower average loan-to-values and strong equity positions have supported that trend, with typical LTVs near 50% and many lenders comfortable up to 75% on the right case. Crucially, more than half of loans are regulated for residential use, which means bridging is not just for developers - it is accessible for everyday homeowners making improvements.

Market momentum underpins that confidence. The UK bridging loan book topped £10bn in late 2024 and is forecast to reach about £12.2bn by the end of 2025. Completions and lending volumes have held up even as timelines compress, signalling a resilient market with faster processing, strong demand for renovations, and a growing share of investment purchases. For households, that translates into a clear path: secure funds quickly, complete the works, then exit via sale or a remortgage once the property is improved and valued at its best.

Understanding APR is not just about percentages - it is about what you will pay in real terms. With bridging, clarity on interest, fees, and exit strategy is everything. Done well, it can be an efficient and cost-effective tool that preserves momentum on your build, avoids missing contractors or materials slots, and helps you capture value sooner. Done poorly, it can become an expensive delay. The difference is preparation and professional advice.

Bridging works best when the timeline, costs, and exit route are crystal clear from day one.

Is this a fit for your situation?

If you need funds quickly to start or complete a home extension, bridging can bridge the gap until a sale or remortgage is ready. It particularly suits buy-before-sale moves, complex chains, or where a property needs works before it qualifies for mainstream mortgage criteria. Homeowners with solid equity and a realistic exit plan usually see the strongest terms. Investors use bridging to fund refurbishments, HMOs and conversions, but regulated residential bridging now accounts for the majority of activity, reflecting broad accessibility.

If your priority is speed, flexibility and certainty of funds - and you can comfortably evidence your repayment route - bridging could be appropriate. If you have limited equity, uncertain income, or an unclear exit, alternative finance or a longer timeline may be safer.

Your funding routes at a glance

1. Regulated residential bridging - short-term loan secured on your home to fund extensions or buy-before-sale.

2. Unregulated investment bridge - suitable for buy-to-let, HMOs or conversions tied to an extension plan.

3. Second charge bridge - keeps your main mortgage in place while releasing equity for works.

4. Development or light refurbishment bridge - tailored for structural works with staged drawdowns.

5. Buy-before-sale bridge - purchase or build now, repay once your current property sells.

6. Re-bridging - refinance an existing bridge to extend the term or adjust costs.

What it costs and what it means for you

Who qualifies and what lenders look for

Lenders assess the property, the borrower, and the exit. Expect close scrutiny of your build costs, planning status, contractor credibility, and contingency. A realistic schedule is essential. With average completions taking about 32 to 43 days in recent periods, having documents organised early can shave weeks off the process. Many successful applicants sit around 50% to 60% LTV, though up to roughly 75% may be achievable with stronger cases and sufficient security. For regulated residential bridges, affordability and consumer protections apply, and you will need clear evidence that the loan is right for your needs.

Kandoo works with a panel of UK lenders and can help present your case with precision - from securing an early valuation to structuring second charge options that avoid disturbing a competitive first mortgage. Your likely exit will be a property sale, which accounts for around three quarters of bridge repayments, or a remortgage such as a buy-to-let if the property is intended for investment. If your exit relies on a sale, market realism on pricing and timelines matters more than ever.

From application to drawdown - the practical path

1. Share plans, costs, timescales, and your exit strategy.

2. Select product type - first or second charge, regulated or not.

3. Provide documents - ID, income, title, planning, build quotes.

4. Valuation instructed - confirm current and proposed works.

5. Legal work progresses - searches, title checks, offer issued.

6. Sign facility letter - fees agreed and funds structure set.

7. Completion - funds released, works schedule begins.

8. Exit - sell or remortgage and settle the bridge.

Benefits and trade-offs in one view

Key checks before you commit

Think carefully about the total cost, not just the headline rate. Add contingencies for materials, labour, and potential planning delays. If your exit is a sale, allow time for conveyancing and chain risk. If it is a remortgage, confirm that your target lender will accept the property post-works and at the assumed valuation. Monitor build cash flow - staged drawdowns can protect you, but delays can still inflate interest and contractor costs. Lastly, be realistic on timelines. The market is faster, but speed relies on clean titles, responsive solicitors, and complete documents.

A defined exit is your safety net. No exit, no bridge.

Next step suggestion: request an indicative quote early and test your numbers against a conservative sale price or remortgage rate.

Alternatives if bridging is not right

1. Further advance from your current lender for home improvements.

2. Remortgage to a higher loan-to-value once planning is in place.

3. Secured homeowner loan or second charge with longer terms.

4. Personal loan for smaller, cosmetic works.

5. Savings plus staged build to reduce borrowing need.

6. Developer equity partnership on larger, complex projects.

Frequently asked questions

Q: How quickly can I get funds for an extension? A: Recent averages range from about 32 to 43 days. Clean titles, early valuations, and responsive solicitors can bring you to the faster end of that range.

Q: What interest rate should I budget for? A: Many borrowers see monthly pricing around 0.64% to 0.90%, with market averages recently near 0.81%. Your LTV, property, and exit strategy influence the final rate.

Q: What is a typical loan-to-value? A: Average cases sit near 50% to 60% LTV. Strong applications may secure up to roughly 75% depending on security, build scope, and exit strength.

Q: How do most borrowers repay a bridge? A: Around three quarters exit via property sale. Others refinance to a buy-to-let or residential mortgage once works are complete and the property meets lender criteria.

Q: Is bridging suitable for homeowners, not just investors? A: Yes. A majority of recent bridges have been regulated for residential use, reflecting mainstream adoption for home extensions and buy-before-sale strategies.

Q: What happens if my build overruns? A: Discuss extensions or re-bridging early. Overruns increase interest and may trigger fees, so maintain a contingency and communicate with your broker and lender.

How Kandoo helps you move faster

Kandoo is a UK-based retail finance broker. We match your extension plans with competitive bridging options, coordinate valuations and legal steps, and structure exits that work - whether sale or remortgage. Speak with us for an indicative quote and a clear timetable tailored to your build.

Important information

Bridging loans are secured against property and may be regulated or unregulated depending on use. You could lose your home if you do not keep up repayments. Terms, rates, and eligibility depend on your circumstances. Seek personalised advice before proceeding.