Bridging finance for international buyers

Updated

Dec 13, 2025 9:15 PM

Written by Nathan Cafearo

Understand UK bridging finance for overseas buyers, including costs, timings, eligibility, risks and practical steps. Navigate a fast-growing market and secure property quickly with a credible exit plan.

I am a business

Looking to offer finance options to my customers

Find out more

Apply for a loan

I'd like to apply for a loan

Apply now

Apply for Halal finance

I'd like to apply for Halal finance

Apply now

The UK bridging picture, simplified

Bridging finance helps you move quickly on a UK property when time matters more than long paperwork. It is a short-term loan secured against property, typically used to complete a purchase, fund a refurbishment or cover a chain break until a sale or refinance happens. The UK market started 2025 strongly, with quarterly completions around £2.8bn and applications jumping significantly. That activity is not an abstract headline. It means lenders have appetite, products are available and the processing pipelines are moving.

Speed is the headline benefit. Where mortgages can take months, many bridging deals now complete in roughly five to six weeks, depending on legal work and valuation. Investors are using this pace to buy at auction, secure off-market opportunities or complete when chains wobble. Average loan sizes sit near the mid-market at around £540,000, with typical loan to value ratios between 50% and 75% depending on security, borrower profile and exit strategy. The loan book is expected to expand further in 2025 as specialist lenders, challenger banks and fintech platforms increase capacity and streamline underwriting.

International buyers are central to this story. Investment purchases have taken a larger share of activity, reflecting the practicality of bridging for buy-to-let, HMO and light refurbishment projects. There is also growth in regulated bridging, used where the borrower or immediate family intends to live in the property. Regulation changes how advice, affordability and consumer protections are handled, so it is important to know which category your case sits in from the outset.

The fundamentals remain constant. Bridging is a means to an end, not a long-term home for your finance. Lenders expect a defined exit within months, most commonly a property sale or refinance onto a buy-to-let or standard mortgage. The best outcomes are achieved when the finance runs quietly in the background, enabling you to complete with confidence while you focus on your project.

Bridging is about timing, certainty and a credible exit - not just rate.

Who benefits most

If you are an overseas investor pursuing a UK property quickly, bridging can provide the certainty sellers and agents want to see. It suits buyers who need to exchange fast, have funds tied up elsewhere, or must complete within strict timelines such as auction deadlines. It also helps where a chain is unstable or a valuation delay would risk losing the deal. For international buyers, a broker who knows the UK market can save time by matching your profile to lenders that understand cross-border circumstances, foreign income and diverse property types. Bridging is not ideal if you have no clear exit or if your income and documentation are highly complex with little supporting evidence. In those cases, more time with traditional financing may be sensible.

Routes you can take

Standard bridging loan secured on the target property.
Second charge bridge raised against other property you own.
Bridge-to-let product with refinance terms pre-agreed.
Refurbishment bridge for light works with staged releases.
Development bridge for heavier works before a full development facility.
Regulated bridge for an owner-occupied UK purchase.

Cost, impact, return and risk at a glance

Aspect	Typical Range or Outcome	What It Means
Monthly interest rate	Around 0.6% - 1.2%	Costs accrue monthly until exit completes.
Fees	1% - 2% arrangement, plus legal and valuation	Budget upfront plus professional costs.
LTV	Typically 50% - 75%	More equity lowers risk and may lower cost.
Completion time	About 38 - 43 days	Faster than mortgages, but legal work still matters.
Exit routes	Sale ~75%, refinance ~19%	Plan the exit before you apply.
Potential upside	Capture discounts or time-sensitive deals	Value-add refurbishments can enhance returns.
Key risks	Delayed exit, market shifts, fall-throughs	Extended terms raise cost and pressure cash flow.

Can you qualify

Eligibility is broader than many expect, but it is not a blank cheque. Lenders focus on security quality, realistic valuation and your exit plan. International buyers should be ready to provide proof of identity, source of funds and a clear audit trail of deposits. If income is from abroad, expect additional verification such as translated payslips, accountant letters or tax returns. For investment properties, lenders will look at rental potential, refurbishment scope and the timeline to refinance or sell. For owner-occupier cases, regulated rules apply and advice requirements tighten. Typical maximum LTV sits around 70% to 75% for strong cases, although 50% to 65% is common when properties are unusual or works are significant. If you have additional assets, a second charge or cross-collateral arrangement can improve terms.

Kandoo can help identify which lenders are comfortable with your nationality, residency and income profile, and who will accept digital document checks to speed up the process. The more complete your file, the quicker underwriters can assess it and instruct valuation and legals.

From enquiry to completion

Share your property details and proposed exit plan.
Provide ID, source of funds and income evidence.
Get a decision in principle and fee summary.
Valuation instructed and legal enquiries commence.
Lender underwrites final terms and special conditions.
Sign documents and arrange funds for completion.
Complete purchase and begin works or letting plan.
Execute exit via sale or refinance on schedule.

Upsides and trade-offs

Pros	Cons
Speedy access to capital for time-critical purchases	Higher monthly interest cost than mortgages
Flexible underwriting for complex or overseas income	Short terms demand a well-defined exit strategy
Can leverage value-add refurbishments for uplift	Legal, valuation and arrangement fees add up
Useful when chains break or auctions require speed	Market shifts can complicate refinance or sale

Read this before you commit

A bridge should be the shortest viable route between today and your exit. If you are counting on a sale, consider local demand, marketing time and how a price adjustment could affect your margin. If your plan is refinance, stress test affordability against conservative rent assumptions and slightly higher rates. Account for the real timeline, not the optimistic one, and add a buffer for legals, searches and contractor delays. Some lenders now offer digital processes and quicker valuations, but title issues or complex leaseholds still need careful legal work. Build contingency for extended interest if the exit slips. Finally, make sure your documentation evidences source of funds and tax compliance. It speeds up underwriting and keeps your timeline intact.

Short-term finance rewards clarity. Define the exit, then work backwards.

Alternatives worth comparing

Standard buy-to-let or residential mortgage if timelines allow.
Secured loan or further advance on existing UK property.
Mezzanine finance partnered with senior debt for developments.
Joint venture equity where investors share risk and return.
Private bank facilities for high-value multi-asset clients.

Frequently asked questions

Q: How fast can an international buyer realistically complete? A: Many complete in five to six weeks, provided valuation and legal work are straightforward and documents are supplied promptly. Complex titles or overseas structures can add time.

Q: What loan to value should I expect? A: Typical ranges are 50% to 75% depending on property type, condition and exit strength. Lower LTVs often deliver sharper pricing and more lender choice.

Q: Are rates fixed for the term? A: Most bridging rates are fixed across the agreed term, with interest serviced monthly or retained. Confirm how interest is calculated and whether early repayment fees apply.

Q: What counts as a strong exit plan? A: A credible sale with evidence of demand, or a refinance pathway supported by projected rental income, valuation assumptions and eligibility for a buy-to-let product.

Q: Can I fund refurbishments with a bridge? A: Yes. Light refurb bridges can release funds in tranches. Lenders will assess the works, contractor capability and timeline to ensure the exit remains achievable.

Q: Will my foreign income be accepted? A: Many specialist lenders accept overseas income with appropriate verification. Expect enhanced checks on documents, translations and consistency with bank statements.

Q: What happens if my exit is delayed? A: You may extend, refinance or sell at a revised price. Each option carries cost and risk. Build contingency to avoid forced decisions late in the term.

How Kandoo helps

Kandoo is a UK-based retail finance broker that connects international buyers with specialist bridging lenders. We compare options, streamline documentation and coordinate valuation and legal processes so timelines stay tight. With access to challenger banks and fintech-enabled platforms, we help secure competitive terms and a realistic route to exit.

Important information

Bridging finance is secured against property and may be regulated or unregulated depending on your intended use. Costs can be significant and terms are short. Always consider independent advice and ensure your exit strategy is achievable within the agreed timeframe.