Bridging finance for landlords

Why speed matters in today’s rental market

Bridging finance has become a decisive tool for UK landlords who need funds quickly. Market activity has accelerated as investors move to secure opportunities ahead of potential policy shifts. Investment purchases now account for a significant share of bridging use, driven by stamp duty speculation and a desire to lock in value before costs rise further. HMRC’s stamp duty receipts have climbed, underscoring the real cost pressures facing property buyers. Against that backdrop, the appeal of short-term finance is straightforward: speed, certainty, and the flexibility to act when an asset comes to market.

Completion times tell the story. Industry data shows average bridging completions have been achieved in roughly 32 to 43 days, far faster than the timelines typical of mainstream mortgages. That speed has supported landlords in competitive bids, auction purchases, and buy-before-you-sell chains where delays can derail the deal. The market has also expanded, with forecasts indicating a larger nationwide loan book backed by lenders comfortable with higher loan-to-value limits up to 75% on suitable cases. Average LTVs sit closer to the mid-50s, reflecting prudent underwriting while still providing meaningful leverage for acquisitions and refurbishments.

Landlords are using bridging to purchase investment properties, fund light to moderate refurbishments, or refinance existing bridges when sales slow. Re-bridges have become more common as certain regions experience longer listing periods, giving investors breathing room to complete works or wait for better offers. For many, the equation is practical. Monthly interest is typically paid during the term, often rolled up, and cleared at exit from a sale or refinance to a buy-to-let mortgage once the property is lettable and valuations improve. In a market where some landlords are exiting, active investors with finance in place can acquire stock efficiently, negotiate harder, and move ahead of competing bids.

Put simply, bridging is about timing. Understanding APR is useful, but it is the combination of costs, speed, and exit strategy that determines whether a deal stacks up. Used well, it can convert uncertainty into opportunity.

Is bridging right for you?

Bridging finance suits UK landlords who need to move quickly and can see a clear route to exit. If you are buying undervalued property, bidding at auction, funding a refurbishment that enhances rental yield, or consolidating a portfolio during a window of opportunity, the short-term cost can be justified by long-term returns. It also helps where mainstream lenders will not proceed until a property is mortgageable, for example pre-refurbishment or when a lease is short.

If your strategy depends on tight margins, slow sales, or uncertain refinancing, consider whether a contingency is available. Bridging rewards preparation: accurate valuations, realistic timelines, and a measured plan for sale or refinance. When you pair those with experienced lenders and a broker who can negotiate terms, it becomes a controlled, purposeful tool.

Ways to use bridging now

1. Investment purchase to secure below-market opportunities.

2. Light to moderate refurbishment to unlock higher rents.

3. Buy-before-you-sell to prevent chain breaks.

4. Auction finance with tight completion deadlines.

5. Portfolio acquisition when other landlords exit.

6. Re-bridge to extend term while marketing or finishing works.

7. Capital raise against equity for time-sensitive deals.

Cost, impact, returns, and risks

Can you qualify?

Eligibility hinges on the asset, your exit plan, and the numbers. Lenders will assess property type, location, value, and the intended works, alongside your experience and available equity. While some cases can reach up to 75% loan-to-value, average leverage near the mid-50s reflects sensible risk management. A credible exit is critical: either a sale with realistic comparables or a refinance to a buy-to-let mortgage once the property is rental-ready and meets lender criteria. Affordability is judged through the viability of the exit and overall borrower profile rather than traditional income tests alone. Adverse credit is not always a barrier if the asset and plan are strong. Timescales matter too. With average completions in around 32 to 43 days, your conveyancer must be proactive and documentation complete. As a UK-based retail finance broker, Kandoo connects landlords to specialist lenders suited to the asset and timeline, helping structure terms, anticipate hurdles, and keep the exit on track.

From offer to funds: the process

1. Outline the property, works, timeline, and exit clearly.

2. Broker sources terms and issues an agreement in principle.

3. Submit documents, valuations instructed, legal work begins.

4. Lender underwrites, confirms conditions, and finalises terms.

5. Review legal titles, leases, and any planning or licensing.

6. Sign facility; fees arranged; completion date scheduled.

7. Funds released to solicitor; purchase or refinance completes.

Advantages and watch-outs

Read this before you press go

A bridge only works if your exit is realistic. Sense-check selling prices against conservative comparables and allow for longer marketing periods if local transactions are sluggish. If your plan is to refinance, confirm that the future buy-to-let lender will accept the property post-works, including minimum EPC, tenancy, and lease requirements. Examine legal titles early to avoid last-minute surprises. Build a contingency for time and cost: prices for materials, contractor availability, and any licensing or planning steps can shift your schedule. Finally, be clinical about tax. With stamp duty pressures and evolving allowances, buying quickly is useful only if the net position remains attractive after all costs.

Alternatives you should compare

1. Standard buy-to-let mortgage for stable, mortgageable properties.

2. Second charge loan against existing equity to raise capital.

3. Light development finance for heavier refurbishments or conversions.

4. Secured business loan for portfolio-level cashflow needs.

5. Joint-venture equity to reduce leverage and share risk.

6. Vendor financing or delayed completion with the seller.

7. Remortgage and consent to let where timing allows.

FAQs

Q: How is bridging interest calculated and paid? A: Interest is typically quoted monthly and can be serviced, retained, or rolled up, then settled at exit through sale or refinance. The method affects cashflow and total cost.

Q: What is the difference between regulated and unregulated bridging? A: Regulated bridges involve your home or a family residence and carry stricter protections. Unregulated bridges are used for investments like buy-to-lets and operate under commercial terms.

Q: How fast can I complete a bridge? A: With prepared documents and responsive solicitors, many cases complete within roughly 32 to 43 days. Auctions and straightforward purchases can be faster with early instruction.

Q: What makes a strong exit strategy? A: A believable sale price supported by comparables, or a refinance with a lender that accepts the property post-works, including rental coverage, EPC, and lease criteria.

Q: Can I get a bridge with adverse credit? A: Possibly, if the asset, equity, and exit are strong. Lenders focus on security quality and repayment route, though pricing may be higher and due diligence stricter.

Q: What LTV can I expect? A: Many cases land around the mid-50% LTV, with up to 75% on stronger assets and borrowers. The project, marketability, and exit plan drive the final figure.

How Kandoo helps you move first

Kandoo is a UK-based retail finance broker. We align your investment plan with the right lender, negotiating terms, anticipating legal or valuation hurdles, and keeping timelines tight. Tell us your property, works, and exit, and we will present suitable options so you can commit with confidence. Speak to us today and secure your next deal with speed and clarity.

Important information

Bridging is a short-term solution and not suitable for long-term borrowing. Rates, fees, and LTVs depend on your circumstances and the property. Your property may be repossessed if you fail to keep up payments. Seek independent tax and legal advice before proceeding.