Bridging finance for moving house

Move first, sell later - how a bridge can help

When you find the right home, speed matters. Chains stall, survey issues pop up, and mortgage offers can take longer than you’d like. Bridging finance gives you short-term funding to secure the new property while you sell your current one. It is designed to be fast, flexible, and focused on real-world timelines.

Across the UK, demand for short-term property finance is expanding. Industry forecasts suggest the total bridging loan book could reach £12.2bn by the end of 2025, up from £10.3bn at the end of 2024. Quarterly lending has also risen, with recent gross lending for a single quarter above £200m among key contributors, and completion times trending around 38 to 43 days. For buyers needing certainty - particularly in a competitive market - that speed is decisive.

For home movers, bridging is often regulated (when you or family will live in the property). UK data shows regulated bridging forms a significant share of activity, reflecting its role in supporting owner-occupiers through buy-before-sale moves and chain breaks. Typical loan-to-value ratios average near the mid-50s, with maximum LTVs up to 75% from some lenders, and common terms around 12 months. Monthly interest rates have become more competitive, with recent averages ranging from about 0.64% to 0.81% depending on risk profile and LTV.

The most common exit is a property sale - in other words, you sell your current home and redeem the bridge. Other exits include refinancing to a standard mortgage once your situation is stabilised, or switching to a buy-to-let remortgage if you decide to keep and rent out your existing property. The point is optionality: bridging buys you time, so you are not forced into a rushed sale or a lost purchase.

Understanding APR isn’t just about percentages - it’s about knowing what you’ll pay in real terms. We break it down so you can make informed decisions.

In short, bridging finance can help you complete quickly, protect your onward purchase, and move on your timeline, not the chain’s. With a broker like Kandoo, you can compare lenders, assess the true cost, and map a clear exit route before you commit.

Who benefits from this kind of loan?

If you are buying your next home before your current one is sold, bridging can cover the gap. It suits movers facing chain breaks, downsizers who want to move first and declutter later, and families relocating for work who cannot risk losing a property. It is also useful when your new home needs work that makes a standard mortgage tricky at the outset, or when you are buying at auction and must complete within weeks. Investors use it for time-sensitive opportunities, but the regulated version is tailored to homeowners who plan to live in the property. With typical completion times around 41 to 43 days from offer, bridging can keep transactions on track without forcing quick, discounted sales.

Your practical options

1. Regulated bridge to buy before you sell your home

2. Chain-break finance to complete when a buyer falls through

3. Auction purchase bridge with fast completion timelines

4. Light refurbishment bridge to make a home mortgageable

5. Second-charge bridge secured behind an existing mortgage

6. Investor bridge for let-or-sell strategies (unregulated)

What it costs, what it means

Can you qualify?

Lenders start with the asset and the exit. They will look at the value and saleability of your current property, the purchase you are making, and how you plan to repay the bridge within the agreed term. If you intend to sell, evidence of marketing plans, local demand, and realistic pricing will strengthen the case. If you plan to refinance, lenders consider affordability, credit, and the property’s suitability for a mainstream mortgage once any works are complete. Typical LTVs centre around the mid-50s, with some lenders going to 75% for stronger cases. Credit issues are not always a barrier, but they will affect pricing and required protections. Many home moves use regulated bridging, which includes additional consumer safeguards. As a UK-based retail finance broker, Kandoo helps you present a clear exit strategy, coordinate valuations and legals, and compare offers so the funding fits your timeline and budget.

From application to keys - the sequence

1. Speak to a broker and confirm your exit plan.

2. Provide documents, property details, and credit information.

3. Get an agreement in principle outlining terms and LTV.

4. Valuation instructed on properties securing the loan.

5. Solicitors handle legal checks and undertakings.

6. Receive formal offer after valuation and legals complete.

7. Sign documents and draw down funds to complete.

8. Execute the exit - sale or refinance - within term.

Weighing it up at a glance

Read this before you proceed

Bridging can be a smart solution for a tight timeline, but clarity on your exit is non-negotiable. Sense-check your sale price against comparable local transactions and build a buffer for fees, moving costs, and a few months of interest. If refinancing, confirm mortgage affordability and the property’s mortgageability once any refurb is done. Ask your solicitor about any title quirks early to avoid last-minute delays. Consider what happens if your sale takes longer than expected: could you manage an extension, or would a price reduction still leave comfortable equity after repayment? Finally, choose a broker who will challenge assumptions, set realistic timescales, and negotiate terms that reflect your risk profile.

If not a bridge, then what?

1. Agreed completion date with a longer gap between exchange and completion

2. Let-to-buy mortgage on current home to fund the purchase

3. Deposit release via family gifting or equity loan

4. Portable mortgage product with additional borrowing if allowed

5. Personal loan for minor shortfall where secured lending is unnecessary

Questions people ask

• How long does a bridge take to complete?
  Recent UK data indicates around 38 to 43 days from offer to completion, faster than typical mortgage timelines.

• How much can I borrow?
  Average LTVs sit near 55%, with some lenders offering up to 75% depending on property, credit, and exit strategy.

• What will it cost each month?
  Recent market rates range roughly from 0.64% to 0.81% monthly. Your exact rate depends on LTV, credit profile, and property type.

• What is the most common exit?
  A sale of the existing property is most common, with many borrowers using bridging to buy before they sell.

• Is regulated bridging right for me?
  If you or a family member will live in the property, regulated bridging applies and includes consumer protections suited to home movers.

• What happens if my sale falls through?
  You can seek an extension or switch to a refinance exit, but both depend on affordability, lender appetite, and market conditions.

How Kandoo helps you move without the hassle

Kandoo is a UK-based retail finance broker. We compare bridging lenders, structure a credible exit, and coordinate valuation and legal steps to keep your purchase on track. Tell us your timeline and target property, and we will help you secure competitive terms with clear costs and a plan that works in the real world.

Important information

Bridging loans are secured on property and may be regulated if you or family will live there. You must have a realistic exit within the term. Failing to repay may result in repossession. Rates, fees, and eligibility depend on your circumstances and property details.

Next step: Speak to a Kandoo broker to map your exit and get terms within days.