Bridging finance for foreign investors

A clear route into UK property, fast

Bridging finance gives overseas investors a simple way to buy, refurbish, or refinance UK property on tight timescales. Instead of waiting months for a traditional mortgage, specialist lenders advance funds against the property’s value and your exit plan. In practice, that means you can complete in weeks, capture a discount at auction, or secure a prime asset while arranging longer term funding in the background.

The market has matured. Completion volumes surged in 2024 and forecasters expect further growth into 2025, reflecting broader use by landlords, developers, homeowners and businesses. For foreign nationals, the appeal is straightforward: loans from around £100,000 up to £50 million are available for properties in England and Wales, including residential, buy-to-let, HMOs, mixed-use and commercial. Loan-to-value can reach up to 75% with options for first and second charge. Rates start from around 0.40% variable, with fixed options typically from 0.75%, and decisions are driven by asset quality, due diligence and a credible exit rather than UK residency or domestic credit history.

Speed is the defining feature. Where mainstream mortgages may take 8 to 12 weeks, bridging commonly completes in 2 to 3 weeks when legals and valuation move swiftly. Many lenders operate in-house legal teams to accelerate international cases and accept overseas solicitors, so no UK travel is required. That speed, combined with flexible use cases like refurbishments, conversions and ground-up builds, creates an efficient bridge to refinance or sale, especially in London and other high-demand regions.

Bridging is not a blank cheque. Costs are higher than standard mortgages and the term is short, typically up to 12 to 24 months. Discipline matters: you will need a defined plan to exit via sale or refinance. But for investors who value certainty of execution and the ability to move fast, bridging can unlock opportunities that might otherwise slip through the net.

Understanding APR is not just about percentages - it is about the total you pay in real terms and when. Bridging prioritises speed and flexibility, so compare total costs against the value of acting quickly.

Who benefits most

Foreign nationals, expats and overseas companies seeking to purchase or improve property in England and Wales stand to gain the most. If you are bidding at auction, buying off-market, or negotiating a time-sensitive deal, the ability to complete quickly can be decisive. Investors building portfolios, converting assets to HMOs or mixed-use, or refinancing unencumbered property can also benefit. Newcomers to the UK market without local credit history will find lenders focused on the property, the security and the exit strategy rather than residency status. If you want speed, flexibility and clear underwriting, bridging is built for your use case.

Your funding routes at a glance

1. Standard bridging - first charge on residential, buy-to-let or commercial for purchase or refinance.

2. Lite bridging via UK limited company - streamlined, same headline rates for foreign nationals in straightforward cases.

3. Heavy refurbishment bridging - for structural works, conversions or change of use planning.

4. Second charge bridging - release equity while keeping an existing first charge in place.

5. High-value prime bridging - £1m to £25m for prime residential and commercial assets.

6. Auction finance - pre-agreed facilities to meet 28-day completion deadlines.

7. Development exit bridging - refinance completed or near-completed schemes pending sale or term finance.

Costs, impact and risk in context

Who qualifies and what lenders look for

Eligibility for foreign nationals is grounded in the asset and the exit rather than your UK footprint. Lenders will evaluate the property’s value, location and condition, along with your intended works and timeline. They will expect a clear exit route by sale or refinance, supported by realistic assumptions on values, costs and demand. For loans in England and Wales, many providers accept applications from non-residents, including foreign companies and expats, and can use overseas solicitors to complete legals without UK travel. Where cases are straightforward, lite bridging via a UK limited company can deliver the same headline rates offered to domestic borrowers, particularly on residential, mixed-use and commercial assets in London, the Home Counties and other major cities. For higher value transactions, specialist teams can consider loans from £1 million up to £50 million, with optional second charge facilities on residential assets. If you are unsure whether your profile or project fits, Kandoo can assess your circumstances, shortlist suitable lenders and structure an exit that aligns with your objectives.

From enquiry to completion - the typical steps

1. Share the property, timeline, and intended exit strategy.

2. Receive initial terms subject to valuation and due diligence.

3. Instruct valuation and engage solicitors on both sides.

4. Provide KYC, source of funds, and asset documents promptly.

5. Review legal report, confirm conditions and insurance cover.

6. Sign facility documents and complete drawdown to your solicitor.

7. Deliver works or acquisition milestones and monitor costs.

8. Exit via refinance or sale before the facility end date.

Upsides and trade-offs

Points to check before you commit

Before you sign, stress test your exit. If your plan relies on refinance, consider rate scenarios and lender criteria at maturity. If you intend to sell, sense-check demand, comparable sales and potential pricing slippage. Build a realistic timeline for planning, contractors and materials, and add contingency for delays. Review the fee schedule in detail, including any minimum interest, exit fees, extension costs and default interest. Confirm insurance requirements and responsibilities for legal, valuation and monitoring expenses. Finally, ensure your solicitor has bridging experience and is comfortable acting for an overseas client so title, charges and releases are handled without friction.

Alternatives you might weigh

1. Term buy-to-let mortgage - lower rate, slower completion.

2. Development finance - staged drawdowns for heavier construction.

3. Mezzanine funding - supplements equity between senior loan and deposit.

4. Joint venture equity - share risk and upside with a capital partner.

5. Private bank facility - relationship-driven pricing for larger portfolios.

Frequently asked questions

Q: Can I apply without UK residency or a UK credit file? A: Yes. Many bridging lenders focus on the asset and your exit plan. They accept non-resident borrowers and overseas companies, often without UK credit history.

Q: How quickly can funds be drawn? A: With valuation and legals aligned, completions in 2 to 3 weeks are common. Complex titles or heavy works can add time, so instruct experienced solicitors early.

Q: What properties are eligible? A: Residential, buy-to-let, HMOs, mixed-use and commercial across England and Wales are typically considered, including prime London assets and high-value commercial sites.

Q: How much can I borrow and at what LTV? A: Facilities usually range from £100,000 up to £50 million, with LTV up to 75% on qualifying cases. Second charges on residential can extend options for equity release.

Q: What rates and fees should I expect? A: Variable rates can start from around 0.40% plus a base benchmark, with fixed options from about 0.75% monthly. Expect arrangement, valuation, legal and potential exit fees.

Q: What is an acceptable exit? A: Sale of the asset or refinance to a term mortgage are the most common. Lenders will assess achievability against timeline, market conditions and your track record.

How Kandoo helps you act with confidence

Kandoo is a UK-based retail finance broker with access to specialist lenders serving foreign nationals and overseas companies. We compare terms, structure a credible exit, and manage the process from enquiry to completion. If speed matters and certainty is essential, we will help you secure the right facility at the right time so you can focus on the deal.

Important information

Bridging finance is secured against property and your home or investment may be repossessed if you do not keep up repayments. Costs and eligibility vary by lender and case. Seek independent legal and tax advice before committing.

• Next step: Share your deal outline for tailored indicative terms within 24 hours.

• Ready to move quickly? Prepare ID, proof of funds and project details now.