Bridging finance for limited companies

The market pulse - why bridging makes sense now

Bridging finance has moved from niche to mainstream, and it is doing so for a reason. UK completions matched record highs in early 2025 even as the market entered a period that typically slows. Applications surged and average loan sizes held steady, pointing to broad resilience. Crucially for limited companies, the cost of short-term borrowing edged lower, with average monthly rates slipping below recent peaks. That combination of strong demand and sharper pricing is rare - and it rewards well-prepared buyers.

For property investors and trading companies, bridging is a practical tool to move quickly on time-sensitive opportunities. Auction purchases, chain breaks, short leases, and light-to-heavy refurbishments are classic use cases. With higher loan-to-values available on the right assets and experienced lenders, limited companies can unlock larger capital stacks to secure purchases and fund works before refinancing to a term mortgage or exiting via sale.

Speed has also improved. Typical completion times now sit closer to six weeks, and some transactions close faster when legals and valuation are lined up early. Regulated bridging has grown too, giving directors options when a transaction touches a primary residence or mixed-use asset that needs compliant structuring.

What matters is clarity. Understanding the real cost over the hold period, how rates accrue, and what fees and exit strategies look like is more important than the headline monthly rate alone. Bridging is a short-term instrument - priced for velocity - and it is best used where the uplift or savings outweigh the carrying cost. Get that right, and bridging becomes a disciplined way to win deals others miss.

Understanding APR is not just about percentages - it is about knowing what you will pay in real terms.

Speed wins - but discipline protects your margin.

Who benefits most

Limited companies that buy, refurbish and refinance can use bridging to bridge valuation gaps, fund works, and firm up completion dates. Landlords adopting company structures for tax and portfolio management can also benefit when competing in tight markets or at auction. Trading businesses purchasing premises or mixed-use sites may find bridging unlocks transactions that standard commercial mortgages cannot initially support.

If you value speed, certainty of funds, and flexible underwriting, bridging can provide an edge. If you prefer set-and-forget finance and minimal involvement, a term loan may suit better. A broker-led approach helps you decide quickly and avoid costly missteps.

Your funding routes

1. Standard purchase bridge - acquire quickly, refinance to buy-to-let or commercial term debt.

2. Refurbishment bridge - purchase plus light-to-heavy works drawdowns, then refinance or sell.

3. Development bridge - short-term pre-development or finish-and-exit on part-complete schemes.

4. Auction bridge - day-one funds with tight timelines and defined exit plan.

5. Regulated bridge - where a director’s residence or mixed-use element makes compliance essential.

6. Bridge-to-let products - pre-agreed exit to a term buy-to-let post-works and tenancy.

Costs, timing and outcomes - what to weigh up

Can your company qualify

Lenders assess the asset, borrower profile, and exit in equal measure. Your limited company’s structure, directors’ experience, credit conduct, and proof of deposit are central, but so are the property’s condition, demand, and valuation methodology. Expect scrutiny of planning status, lease lengths, and legal title. A clear exit - sale or refinance - is non-negotiable, and lenders will model it conservatively.

If you are new to bridging, team strength helps. Using experienced contractors, a realistic works schedule, and a contingency budget signals professionalism. Bank statements, filed accounts, or an accountant’s reference provide comfort on affordability, while a broker like Kandoo packages the case to highlight strengths and mitigate weaker areas. Where a regulated element exists, consumer protections apply and the process may include additional suitability checks.

Ultimately, eligibility rests on credible numbers, clean legals, and a believable timeline. Strong preparation often outperforms a higher headline deposit.

From enquiry to drawdown - a simple path

1. Define project, purchase price, and exit strategy clearly.

2. Share company details, statements, and experience summary.

3. Obtain heads of terms with outline pricing and LTV.

4. Instruct valuation and legal due diligence early.

5. Finalise works schedule, contingencies, and insurance.

6. Satisfy conditions, sign documents, and draw down funds.

7. Deliver works, monitor spend, and manage timelines tightly.

8. Refinance or sell - close the loop and repay bridge.

Advantages and trade-offs

Read this before you commit

Every bridge needs a Plan A and a Plan B. If your refinance relies on a post-works valuation, test it with recent comparables and a conservative rent. Build in contingency - for costs and time - because delays reduce profit faster than most first-time borrowers expect. Check title, planning, and any licencing early, especially for HMOs or mixed-use, because a late legal discovery can stall drawdown. Locked-in rates on the exit mortgage are valuable, but if they are not available, stress test the refinance at higher rates. Finally, ensure contractors, materials, and insurances are in place ahead of completion so you can start quickly and compress interest costs.

Alternatives if bridging is not the fit

1. Term buy-to-let mortgage - slower but cheaper for stabilised assets.

2. Refurb-to-let mortgage - integrated works and exit under one product.

3. Development finance - purpose-built for ground-up or heavy conversions.

4. Secured business loan - for lighter capex without property as primary security.

5. Joint venture equity - reduce leverage where LTV is tight.

Frequently asked questions

Q: How much can a limited company borrow on a bridge? A: Many lenders fund up to 70% to 75% of the property value, subject to asset type, condition, and experience. Heavy works or unusual properties may reduce the maximum.

Q: What do bridging rates look like in 2025? A: Average monthly rates have eased compared with early 2024. Competitive cases can price from the mid-0.6% to low-0.8% per month, with overall cost driven by term length and fees.

Q: How fast can we complete? A: Typical timelines range from about six weeks, faster if valuation and legal packs are prepared early and any regulated considerations are addressed promptly.

Q: Can interest be rolled up? A: Yes. Many facilities allow retained or rolled-up interest, which preserves cash flow during works. It reduces net advance and must fit within LTV parameters.

Q: What counts as a viable exit? A: A sale with evidence of buyer demand, or a refinance supported by realistic post-works value and rent. Lenders will stress test the exit conservatively.

Q: Are there fees if plans change? A: Most bridges include extension fees if the term is exceeded, and additional costs for reinspection or monitoring on refurbishments. Build a buffer.

How Kandoo helps your company move first

Kandoo is a UK-based retail finance broker that pairs limited companies with specialist bridging lenders. We organise competitive quotes fast, structure the case for optimal pricing, and keep valuation and legal workstreams moving so you can complete on time. Tell us your target completion date and exit plan - we will align the right product and get you moving.

Important information

Bridging finance is a short-term solution secured against property. Rates, fees, and terms vary by lender and applicant circumstances. Think carefully about affordability and exit strategy. Property values can fall and timelines can slip. Independent legal and tax advice is recommended before you proceed.

Next step: Share your deal details with Kandoo for tailored quotes within hours.