Bridging finance for first-time buyers

A smarter way to move first

For UK first-time buyers, speed is increasingly the difference between securing a home and watching it slip away. Chains fall through, auctions demand immediate completion and sellers want certainty. Bridging finance exists to solve exactly these problems, providing short-term funding so you can buy now and line up your longer-term mortgage or sale later. In early 2025 the market proved resilient, with completions holding at around £2.8 billion in the first quarter and new applications surging, a sign that buyers are turning to rapid finance to compete. Processing is faster too - record completion times of roughly 32 days are allowing buyers to act decisively when opportunities arise.

Rates have become more competitive as lenders respond to stable base rates and healthy equity levels. Average pricing has hovered near 0.64% per month, with some products starting around 0.81%, and typical loan-to-value at about 53%. That combination - lower LTVs, stable pricing and faster processing - has made bridging an effective tool to keep purchases on track when traditional mortgage timetables cannot. Importantly, regulated bridging for residential purchases has grown, offering consumer protections for those planning to live in the property. In short, bridging is no longer niche. It is a mainstream solution to a mainstream problem: how to move quickly with confidence.

Bridging can turn a seller’s maybe into a yes by providing certainty of funds.

In a market where fall-throughs cost buyers hundreds of millions in a single quarter, bridging is often the difference between losing money and completing. The most common exit remains the sale of another property, but remortgaging and term loans also provide clear pathways out. For first-time buyers, it is about control - securing the home while you arrange the longer-term finance that fits. The key is clarity: know your exit route, your timeline and your total cost before you commit.

A simple truth stands out: bridging should be targeted, short and disciplined. Used correctly, it lets you move at market speed without losing sight of affordability and risk.

Who benefits most from this approach

If you are a first-time buyer facing tight deadlines - an auction, a seller who needs a quick exchange or a chain that feels fragile - bridging can provide certainty. It is well suited to buyers with clear exits, such as an impending sale, bonus, inheritance or a near-ready mortgage that needs a little more time. It can also help those stepping into buy-to-let for the first time who need to complete quickly before refinancing on a standard product.

For buyers with meaningful deposits or equity from family support, competitive LTVs can keep pricing manageable. And for anyone worried about fall-throughs, bridging offers a way to secure the property first while the rest catches up. As a UK-based broker, Kandoo can help weigh options and find a regulated route where you plan to live in the home.

Routes you can take now

1. Regulated residential bridging - buy your home while mortgage completes.

2. Chain-break bridging - secure your purchase before your sale finalises.

3. Auction finance bridging - meet 28-day deadlines with confidence.

4. Light refurbishment bridging - fund minor works before remortgaging.

5. Buy-to-let bridging - acquire quickly, then refinance to a term product.

6. Second-charge bridging - release equity without remortgaging immediately.

What it means for your wallet and timeline

Can you qualify and when it helps

Eligibility for bridging focuses on your exit plan and the available equity rather than traditional affordability models. Lenders typically look for a clear route to repayment within 6 to 18 months, often through property sale or remortgage. With average LTVs around 52.79%, stronger deposits and additional security can improve pricing. For first-time residential purchases, regulated bridging is available, adding consumer protections and aligning with owner-occupier needs. Where applicants have thin credit files, clean recent conduct and a plausible exit can still carry weight, though pricing may reflect risk.

Valuation and legal checks still matter. A realistic survey, clean title, and solicitor capacity can make the difference between 32 days and a long wait. If you are buying at auction, ensure contracts are ready for your solicitor to review immediately and confirm that your exit is feasible within the timeframe. Kandoo can assess your circumstances, review documentation and match you with lenders comfortable with your property type and timeline. If you plan to refinance, we will sense-check affordability against likely mortgage rates and stress tests to avoid surprises.

From offer accepted to funds released

1. Share property details, timeline and your intended exit route.

2. Get an Agreement in Principle and indicative terms.

3. Instruct valuation and appoint solicitors on both sides.

4. Submit documents - ID, income, assets, liabilities and statements.

5. Receive formal offer following valuation and underwriting.

6. Complete legal work, sign documents and draw down funds.

7. Execute your exit - sale, remortgage or term loan.

Quick tip

Have your solicitor and valuation booked early - time saved is money saved.

The upsides and trade-offs at a glance

Before you sign anything

Bridging should be intentional. Confirm your exit timeline in writing and test it against hiccups - a slower sale, a down valuation or solicitor delays. Build a cash buffer for interest extensions and legal costs. Ask lenders to model outcomes at different term lengths, and compare total cost including fees, not just the headline monthly rate. If you are buying at auction, check special conditions and penalties for late completion. For chain-break scenarios, speak to your estate agent to secure realistic dates and keep all parties aligned. Finally, consider how a future remortgage will be assessed - income, rental cover and product availability matter. A short call with Kandoo can benchmark scenarios so you enter with eyes open.

If bridging is not the right fit

1. Agreement in Principle on a standard mortgage - negotiate completion dates.

2. Vendor-backed delayed completion - exchange now, complete later.

3. Family deposit or gifted equity - reduce the need for speed.

4. Let-to-buy remortgage - release equity while keeping your current home.

5. Personal loan for small gaps - only if affordable and suitable.

Questions buyers often ask

Q: How quickly can bridging complete? A: Many cases finish within 4 to 6 weeks, with some completing in around 32 days if valuation and legals run smoothly.

Q: What does it cost monthly? A: Average pricing sits near 0.64% per month, with some products from around 0.81% depending on LTV, property and profile. Always factor in fees.

Q: What is a typical loan-to-value? A: Around 50% to 60% is common, with market averages close to 53%. Lower LTVs can improve pricing and eligibility.

Q: How do I repay the bridge? A: Most borrowers exit via property sale or by remortgaging onto a term product once works complete or documents are in order.

Q: Is regulated bridging available for my first home? A: Yes. Regulated bridging applies when you or your family will live in the property, offering consumer protections and suitability checks.

Q: What if my exit is delayed? A: Interest continues and fees may apply. Build a buffer and discuss extension options early so you can manage the timeline.

How Kandoo can help

Kandoo is a UK-based retail finance broker with access to a wide panel of bridging lenders. We compare regulated and unregulated options, sense-check your exit, and coordinate valuation and legal steps to keep the process moving. Tell us your target property and timeline - we will map the most cost-effective route and negotiate terms that fit your plans.

Important small print

Bridging finance is a short-term solution and is not suitable for long-term borrowing. Your property may be repossessed if you do not keep up repayments. Rates, fees and timescales vary by lender and your circumstances. Seek independent advice if unsure.

Next steps

• Gather documents: ID, income, bank statements, property details.

• Speak to Kandoo for an outline and Agreement in Principle.

• Instruct your solicitor and book valuation immediately.

That way, when the right home appears, you are ready to act.