Bridging finance for home buyers

Why bridging can win you the keys sooner

Bridging finance is short-term lending designed to help you secure a property before longer-term funding is in place or before your current home sells. In a market where chains can stall and attractive homes draw multiple offers, speed matters. Recent UK data shows why buyers are turning to bridging: completions reached around £2.8 billion in the first quarter of 2025, matching late 2024 highs despite the usual winter slowdown. New applications surged more than 55 percent, signalling strong demand and lender confidence. Average completion times reported across the market are frequently near the six-week mark, with some datasets recording about 41 to 43 days from offer to completion.

Regulated bridging for residential use now accounts for a significant share of activity, giving home movers the consumer protections they expect when the property will be their home. Typical loan-to-value ratios sit around the low to mid 50s, although selected lenders will consider higher LTVs for the right case, sometimes up to 75 percent. Monthly interest rates vary by lender, profile and security, with recent averages indicated in the 0.64 to 0.85 percent range. For many buyers, the key is not the headline rate but the real-world outcome: securing the property, avoiding a chain collapse and moving on a chosen timetable.

Understanding APR is not just about percentages. It is about what you will pay in real terms over the months you hold the bridge.

With the total UK bridging loan book projected to expand further through 2025, options are broadening. Funds can start from £5,000 and scale to large six-figure sums and beyond, supporting everything from modest upgrades to higher-value purchases. If you need to buy before you sell, raise a deposit quickly or navigate a down-valuation, bridging can provide the breathing space.

A short-term bridge should always have a clear exit. The most common exits are sale of the existing property or refinancing to a mainstream mortgage such as a buy-to-let or residential product once circumstances stabilise. Set the plan first, then choose the lender.

Who benefits from this type of finance

If you are a UK home mover facing a chain delay or you have found a property you must secure before your current home sells, bridging can help. It also suits buyers needing to release equity quickly for a deposit, purchasers dealing with down-valuations or time-sensitive transactions such as auctions, and homeowners renovating to improve mortgageability. Regulated loans are designed for residential use, so if the property will be your home, you are within a well-defined consumer framework. Investors can also use unregulated bridges where appropriate, but this guide focuses on home buyers seeking speed with clarity on cost and risk.

Your choices at a glance

1. Regulated bridge to buy before you sell

2. Chain-break bridge to prevent a purchase falling through

3. Auction bridge with fast drawdown and fixed completion timeline

4. Light refurbishment bridge to improve mortgageability

5. Re-bridge to extend if a sale or remortgage is delayed

What it costs and what to weigh up

Short-term funding, long-term benefit: the right bridge can preserve a purchase and your negotiating position.

Can you qualify

Lenders assess the property, your equity position and the credibility of your exit plan above all else. For a residential purchase, regulated bridging places you under consumer safeguards, which adds clarity to documentation and advice. Expect proof of income, ID and evidence that the exit is workable, such as a memorandum of sale for your current property or an agreement in principle for remortgaging. Valuation quality matters, as does legal readiness, especially where titles, leases or planning considerations could slow things down.

Kandoo works with a panel of UK bridging lenders and can help position your case to the right specialist. If your LTV is near 50 to 60 percent and your exit is a confirmed sale or refi with time to spare, approval is typically more straightforward. Higher LTV or complex properties may still be feasible with additional security or stronger documentation. Be ready to demonstrate affordability if you intend to service interest monthly or to show sufficient retained funds if interest will be rolled up.

From enquiry to funds in a few steps

1. Share your purchase, timescales and exit plan with a broker

2. Receive indicative terms and check fees and interest carefully

3. Instruct valuation and solicitors on both sides promptly

4. Provide documents and respond to lender queries quickly

5. Review the offer, choose rolled or serviced interest

6. Exchange and complete, with funds released to meet deadlines

7. Progress your exit by marketing or arranging remortgage

8. Repay the bridge, then settle any rolled-up interest

Balancing advantages and drawbacks

Read this before you proceed

Speed is valuable, but discipline protects your budget. Build a conservative timeline that allows for searches, valuation and legal clearance. If a lender quotes 41 to 43 days on average, plan for the longer end and keep all parties instructed early. Fix your exit route and have a backup, such as adjusting the sale price or lining up an alternative remortgage product if markets move. Rate headlines are only part of the picture. Look at total cost including interest, fees and any redemption charges. If you expect to hold the bridge for three months, model four or five and ensure the numbers still work. Finally, keep communication tight between broker, solicitor and agent to avoid last-minute delays that create unnecessary cost.

Alternatives if bridging is not right

1. Chain repair via flexible completion dates and conditional contracts

2. Let-to-buy or consent to let followed by a residential purchase mortgage

3. Deposit release through a secured loan on existing equity

4. Vendor finance or gifted deposit where appropriate and acceptable to lenders

Questions buyers often ask

Q: How quickly can a bridge complete? A: Market data frequently shows completion in roughly six weeks, with some cases quicker. Timescales depend on valuation, legal complexity and how promptly documents are provided.

Q: What interest will I pay? A: Recent averages range around 0.64% to 0.85% per month. Your rate depends on property type, LTV, credit profile and the strength of the exit.

Q: What is the usual exit strategy? A: The most common exits are sale of your current property or refinancing to a residential or buy-to-let mortgage once the property is ready and income or tenancy is in place.

Q: Can I roll up interest? A: Yes. Many lenders allow retained interest so you do not make monthly payments. It increases the total to repay, so ensure the exit covers interest and fees comfortably.

Q: Are small bridges available? A: Yes. Some lenders offer facilities from £5,000, useful for modest works or deposits. Availability and pricing vary, so a broker can identify suitable options.

Q: What happens if my sale is delayed? A: You can apply to re-bridge or extend, but costs will increase. Engage early with your broker to keep options open and avoid rushed decisions.

How Kandoo can help

Kandoo is a UK-based retail finance broker that connects home buyers with suitable bridging lenders. We align your timeline, LTV and exit plan with the right provider, then manage the process to valuation and legal completion. If time is tight, our role is to keep all parties coordinated so you can secure the property with confidence and a clear path to repayment.

Important information

This guide provides general information only and is not personal advice. Bridging finance is secured against property and your home may be repossessed if you do not keep up repayments. Always consider independent legal and financial advice before committing.

Next steps: request indicative terms, prepare documents, instruct valuation and solicitors early for a smoother completion.