Bridging finance for new-build homes

Fast-track your new-build purchase with confidence

Bridging finance is designed to solve one problem well - timing. If you need to secure a new-build before your sale completes, fund a reservation while works finish, or move quickly at auction, a short-term bridge can provide the funds you need without waiting for a traditional mortgage. In a competitive UK market, speed matters.

The numbers back this up. UK bridging completions reached £2.8bn in Q1 2025, matching year-end highs despite typical seasonal slowdowns. Applications have surged, and lender books are projected to reach about £12.2bn by the end of 2025. Average completion times sit around 38 to 43 days from offer, far quicker than a conventional mortgage. Monthly pricing has eased, with averages around 0.81% amid steady base rates and healthy lender competition. Loan-to-value can stretch to around 75% with the right case, while typical LTVs hover closer to the low-50s.

For homebuyers, regulated bridging is increasingly common, supporting upsizing, downsizing and chain-avoidance moves. For investors, the market tilt is notable - purchase-led bridging has grown sharply, and investment acquisitions now account for a meaningful share of activity. That means buyers and developers are using bridging as a mainstream tool to capture opportunities that do not wait.

Understanding APR is not just about percentages - it is about what you will pay in real terms over the months you expect to hold the loan.

Used well, a bridge is a strategic lever: secure the unit, finish the refurbishment, exit cleanly via sale or remortgage. The key is planning your exit from day one. Set realistic timelines, align your legals and valuation early, and budget for fees including arrangement, legal, valuation and potential exit charges. Done with discipline, bridging can be the difference between missing out and moving in.

Bridging turns timing gaps into solvable problems, not deal-breakers.

Who benefits most

Bridging suits UK buyers who need certainty and speed, particularly where a new-build completion date clashes with a sale, or where reservation deadlines require funds ahead of mortgage drawdown. It is also effective for homeowners managing chain breaks, and movers needing a temporary facility while proceeds from an existing property are realised.

For investors and developers, bridging can unlock acquisitions, auction purchases, EPC upgrades, light refurbishments, and conversions to HMOs. If you are targeting portfolio growth or a quick turnaround, the speed and flexibility of a bridge can be decisive. As a broker, Kandoo helps match your project profile to lenders that understand new-build timelines and practical site constraints.

Where a bridge fits on new-builds

1. Buy-before-you-sell to secure a reservation without chain delays.

2. Exchange quickly while your longer-term mortgage completes.

3. Bridge snagging or completion-day timing gaps on new-builds.

4. Fund upgrades or light works pre-sale or remortgage.

5. Short-term capital for investor acquisitions and auctions.

6. Portfolio reshuffles where sale proceeds arrive after completion.

Costs, timing, returns and risks at a glance

Can you qualify

Eligibility is straightforward when the basics are in place. Lenders want a realistic exit strategy such as a confirmed sale, a remortgage with evidence of affordability, or a planned refinance after works complete. Valuation matters on new-builds, particularly if incentives are involved, so expect close attention to the purchase price, any discounts, and the development’s completion milestones. While some lenders will consider higher LTVs, many prefer lower gearing for regulated loans on owner-occupied homes.

Your credit profile, income and asset position will be reviewed, though bridging can be more flexible than high-street mortgages. If the property is uninhabitable before completion or requires light works, lenders will assess scope, costings and timescales. Legal readiness helps - clean title, clear planning and building regs, and a sensible timeline that matches your anticipated exit. As a UK-based retail finance broker, Kandoo can assess your aims and match you with lenders experienced in new-build completions and chain management, helping you avoid delays and unnecessary costs.

From application to keys in hand

1. Share your goals, timeline and exit strategy upfront.

2. Provide ID, income, asset and property details.

3. Receive terms in principle and confirm affordability.

4. Instruct valuation and start legal due diligence.

5. Final underwriting and issue of formal offer.

6. Sign documents and satisfy pre-completion conditions.

7. Funds draw down to meet exchange or completion.

8. Execute exit via sale or remortgage as planned.

Balancing the benefits and the trade-offs

Next steps

• Gather documents and a draft exit plan before applying.

• Ask for a full costed illustration, including all fees.

• Line up your remortgage options early to de-risk exit.

What to check before you commit

Before proceeding, pressure-test your exit. If you plan to sell, consider local time-on-market trends and price sensitivity. If you plan to remortgage, check product availability, stress rates and affordability against your projected rent or income. Scrutinise incentives on the new-build, as these can affect valuations and lender appetite. Build a realistic timeline with buffers for conveyancing, snagging and developer delays. Review all fees in writing and ask about early repayment or minimum interest policies. Finally, ensure you have sufficient cash for deposits, SDLT and contingencies so you are not forced into extending the bridge.

Alternatives to consider

1. Long-term mortgage with delayed completion or developer flexibility.

2. Let-to-buy or consent-to-let to release equity without selling first.

3. Second charge on your current home for short-term capital.

4. Development finance if works go beyond light refurbishment.

5. Family-assisted options such as gifted deposits or guarantees.

Frequently asked questions

Q: How quickly can a bridge complete for a new-build? A: Many cases complete around 4 to 6 weeks from offer, helped by early valuations and proactive legals.

Q: What monthly interest rate should I expect? A: Recent averages are around 0.81% per month, with sharper pricing available for low LTV, strong exits and clean legals.

Q: What LTV is realistic for a homebuyer? A: While up to around 75% is possible on the right case, many regulated loans sit lower. Lower leverage typically reduces risk and cost.

Q: Do incentives on new-builds affect valuations? A: Yes. Discounts, contributions or upgrades can impact the assessed value. Lenders will price and lend against the valuer’s view.

Q: What is the most common exit strategy? A: Sale or remortgage. Prepare both if possible, with a remortgage decision in principle and a clear marketing plan if selling.

Q: What happens if my sale is delayed? A: Speak to your broker early. You may extend the term or adjust the exit, but this can increase total interest. Planning buffers helps.

How Kandoo can support your move

Kandoo is a UK-based retail finance broker that connects you with lenders experienced in new-build timelines, regulated bridging and investment purchases. We compare rates, terms and fees, help shape a credible exit strategy, and manage valuations and legal coordination to keep your case moving. Speak to us for a clear illustration and a decision in principle tailored to your timeline.

Important information

Bridging is short-term finance. Rates, fees and terms vary by lender and applicant profile. This article is for information only and not financial advice. Eligibility and approvals depend on individual circumstances and property suitability. Consider independent advice before committing to any product.