Bridging finance for family transfers

A faster route through family property changes

Families rarely move home in a straight line. A buyer falls through, probate takes longer than expected, or a new-build completes before you have sold. In a market where values have risen and competition for good homes is fierce, timing matters as much as price. That is where bridging finance can provide a measured solution - short-term funding to complete a purchase or release equity while you organise your exit.

The market is also working in your favour. Forecasts suggest the UK bridging loan book could reach around £12.2bn by end-2025, reflecting strong demand for quick property deals. Recent quarters set records for completions, indicating lenders have both appetite and processes to move swiftly. Average processing has tightened, with some periods recording completions in just over a month, and broader datasets showing offers to completion averaging around 43 days in 2025 so far. For families juggling chains or coordinating a transfer, days not months can make the difference between keeping and losing a home.

Pricing has improved too. Average monthly rates dipped to around 0.81% in Q2 2025, with case data showing typical regulated loans around 0.64% per month in early 2025. That trend reflects base rate stability and healthy lender competition. Importantly, typical loan-to-value levels have sat near 53% across many cases, often supported by additional security in buy-before-sale scenarios. It means access can be easier if you have equity but need speed.

The right bridge turns timing risk into managed cost.

Most family transfers exit via property sale, and three in four cases use sale as the repayment route. Others refinance once circumstances settle. The key is clarity on your exit and discipline on timescales. Used well, bridging finance buys you time to secure the home your family needs without forced compromises.

Who benefits most right now

If you are buying before selling, breaking a chain, supporting a relative through probate, or consolidating ownership within the family, bridging can help you move quickly with less disruption. Homeowners with solid equity, downsizers releasing capital, and landlords coordinating portfolio swaps can also benefit. Regulated bridging - secured on a home you live in or will live in - offers consumer protections and suits family moves. If your situation is more complex, unregulated options may fit where the security is investment property. In either case, a broker can map the right route and negotiate terms based on your specific timeline and exit.

Your choices at a glance

1. Regulated residential bridge - for buying a home before selling your current one.

2. Unregulated investment bridge - secured on buy-to-let or a second property.

3. Chain-break bridge - complete your purchase while a buyer for your property catches up.

4. Probate or inheritance bridge - release funds to settle estates or tax without selling in haste.

5. Downsizing bridge - secure a smaller property now and repay on sale of your current home.

6. Family gift or loan - interest-free support from relatives with clear documentation.

Costs, timing and risk - what to expect

Can you qualify

Lenders look for a clear exit strategy, sufficient equity, and clean title. If you are buying before selling, a realistic sale plan for your current property is essential, supported by local agent appraisals or evidence of buyer demand. Where probate is involved, documentation and executor authority need to be in place early. Credit profile matters, but it is often assessed with more flexibility than a traditional mortgage given the short term and strong asset backing. Typical loan-to-value sits around the low to mid-50s, although some lenders will stretch to circa 75% with the right security and income profile.

Kandoo can assess your case quickly and match you with lenders that prioritise regulated family moves, which currently make up a large share of UK bridging activity. We will outline total cost in pounds and pence, model sensitivities if your sale takes longer, and ensure your solicitor is briefed on the specific bridging requirements. The aim is simple - hit your completion date without storing up problems for later.

How the process unfolds

1. Share your timeline, property details and planned exit.

2. Receive market-wide quote and indicative terms.

3. Valuation instructed and legal checks begin.

4. Formal offer issued subject to conditions.

5. You review fees, interest and exit assumptions.

6. Sign documents and arrange building insurance.

7. Funds released to your solicitor for completion.

8. Market your sale or refinance as planned.

Pros and trade-offs

Read this before you proceed

Bridging finance should solve a timing problem, not replace long-term borrowing. Build a buffer for delays and stress test your exit at lower sale prices or longer marketing periods. If your buyer falls away, do you have a back-up plan or refinance route ready. Make sure your solicitor understands bridging requirements, including priority of charges and any consent from existing lenders. Ask for the total cost including interest, fees and legal costs so you can compare with alternatives such as a price negotiation or a short tenancy. Above all, keep communication tight between broker, lender and solicitor to avoid last-minute issues.

Next step: request a tailored illustration and timeline, then align your agents and solicitor around the target completion date.

Alternatives worth weighing

1. Family gift or loan - no interest, but formalise with a deed.

2. Let-to-buy mortgage - keep your current home and remortgage to release deposit.

3. Deposit unlock from savings or investments - consider tax and access costs.

4. Price renegotiation or delayed completion - trade time for certainty.

5. Short-term rental between moves - avoids pressure but adds moving costs.

Frequently asked questions

Q: How quickly can funds be released? A: Recent data shows average completions can land in roughly one to six weeks depending on valuation, legals and the complexity of your title. Clean cases complete fastest.

Q: What interest rate should I expect? A: In 2025, monthly rates around 0.64% - 0.81% have been common, influenced by loan-to-value, property type, and whether the loan is regulated.

Q: How do I repay the bridge? A: Most borrowers sell a property to exit. Others refinance once income or tenancy positions are settled. Your exit must be credible and time-bound.

Q: What is the maximum LTV? A: Many lenders are comfortable around 50% - 60%. Some stretch to about 75% with additional security and strong evidence of exit.

Q: Are regulated bridges safer for family moves? A: Regulated loans include consumer protections and suit owner-occupiers. They also align with the high proportion of residential-use bridging seen in the market.

Q: Can poor credit be accepted? A: Possibly, if equity is strong and the exit is clear. Pricing may be higher and underwriting more detailed.

How Kandoo can help

Kandoo is a UK-based retail finance broker with access to a wide panel of bridging lenders. We compare offers, pressure test your exit, and coordinate solicitors and valuations to keep your timeline intact. Tell us your target completion date and we will engineer your financing around it.

Important information

This guide is for general information only and does not constitute advice. Bridging loans are secured on property and your home may be repossessed if you do not keep up repayments. Terms and availability depend on your circumstances and lender criteria.