Bridging finance for non-standard construction

A practical route into complex properties

Buying a property that a high street bank will not touch can feel like a dead end. Non-standard construction - from unrepaired PRC and large-panel system blocks to mixed-use buildings or homes with combustible cladding - often sits outside mainstream mortgage criteria. In 2025, lender appetite remains cautious and policies vary widely by construction type. That is precisely where bridging finance earns its place. It provides short-term, fast-arranged funding so you can complete the purchase, carry out repairs, secure certifications and then refinance to a standard mortgage once the asset meets long-term criteria.

Bridging is designed for speed and flexibility. Facilities can be agreed in days to weeks, which is essential for auction completions or rescuing a chain at risk. Many specialist lenders assess the open-market value rather than just the purchase price, reducing the immediate deposit needed. Manual underwriting and bespoke due diligence are common, meaning lenders can look past initial defects when there is a credible plan to remediate. The key is a clear exit - refinance or sale - with the right professional evidence to support it.

You should expect lower loan-to-value limits than on standard mortgages and higher pricing to reflect risk and speed. Many non-standard types cap out around 60 percent of open-market value, while some ex-local authority properties can reach 70 to 75 percent depending on lender and unit type. Your budget must include professional fees, valuation and legal costs, and a contingency for extensions. For owner-occupiers, certain bridging loans are regulated by the FCA, which brings additional protections and affordability checks; most investment and development cases remain unregulated and are assessed on the project, not household income.

Understanding APR is not just about percentages - it is about what you will pay in real terms and how your exit impacts total cost.

Handled well, bridging converts an unmortgageable property into a mainstream asset. The lifecycle is simple: acquire with a bridge, complete remedial works, secure RICS-compliant reports and certificates, then refinance. Align this with UK planning timetables for conversions and ensure the works meet building regulations so long-term lenders can say yes. That is how you unlock value and move quickly without taking unnecessary risks.

Who benefits from this approach

Investors, small developers and portfolio landlords regularly use bridging to buy non-standard stock, fund refurbishments and release value on exit. Owner-occupiers facing a chain break or buying a home that needs structural remediation may also rely on regulated bridging to complete on time. If you are bidding at auction, acquiring an ex-local authority flat with specific lender restrictions, or converting a commercial unit to residential under permitted development, short-term finance can bridge the gap between today’s condition and tomorrow’s mortgage-readiness. With a broker who understands construction types, lender policies and local planning, you reduce surprises and improve your odds of a smooth refinance.

Your funding routes at a glance

1. Bridging loan - purchase and remediate, then refinance to a mortgage.

2. Auction bridge - tailored to 28-35 day completions with refurb funds.

3. Light refurbishment bridge - cosmetic to moderate works, quicker drawdown.

4. Heavy refurbishment or conversion bridge - structural changes, staged releases.

5. Developer exit bridge - finish sales or refinance after practical completion.

Costs, timelines and risk trade-offs

Short standout: Get lender-specific criteria early - it saves time and reduces rework.

Who is likely to qualify

Eligibility depends on your construction type, experience, deposit and exit. Lenders will want to see a viable plan that accounts for surveys, works and the refinance or sale. Many will lend on the open-market value and accept properties that are initially unmortgageable, provided remediation is clearly costed and realistic. For owner-occupiers, regulated bridging involves affordability and suitability checks alongside property due diligence. For investors and developers, the focus is the asset, works scope and exit timeline. A RICS valuation and, where relevant, structural engineer reports are typical. If cladding, PRC or structural issues are involved, expect specific certification requirements before long-term lenders will refinance. Deposits are larger than for standard mortgages due to lower LTVs, and rates reflect project risk. Kandoo can help map your property’s characteristics to lenders with explicit acceptance lists and arrange manual underwriting where your case merits a bespoke view.

From offer to exit - the steps

1. Confirm property type and likely lender appetite.

2. Instruct RICS valuation and relevant specialist surveys.

3. Structure the bridge - term, LTV, works and contingency.

4. Complete legal due diligence and plan auction or completion.

5. Draw down funds and commence agreed remedial works.

6. Obtain certifications and updated reports for refinance.

7. Apply for long-term mortgage or prepare sale.

8. Repay bridge and close with final statements.

Weighing it up

Read this before proceeding

A bridge only works if your exit is credible and timed to your works. Build a realistic programme that includes approvals, supply chain lead times and lender processing windows. If you need certifications - such as structural engineer sign-off, PRC repair completion or EWS/other cladding evidence - line them up early, as these are often the gating items for mainstream refinance. Keep a cash buffer for extensions because delays are common and interest accrues daily. Finally, recognise that lender criteria vary widely by construction type, even among big UK banks. Broker matching is not a luxury here - it is a necessity.

Next step: ask for a lender-by-lender criteria check and an indicative LTV range before you bid.

Alternatives worth comparing

1. Vendor financing - short term, depends on seller flexibility.

2. Development finance - for larger structural works and ground-up builds.

3. Second charge bridge - release equity against another property.

4. Joint venture equity - share upside to reduce borrowing.

5. Cash purchase then mortgage - fastest, but ties up capital.

Frequently asked questions

Q: What counts as non-standard construction? A: Anything outside conventional brick or block with slate or tile roof, such as PRC, steel or timber frames, large-panel systems, or properties with unresolved cladding or structural defects.

Q: How fast can a bridge complete? A: Many cases complete in days to a few weeks. Auction products target 28-35 day completions, provided valuation and legal work start immediately.

Q: What LTV should I expect? A: For higher-risk non-standard types, expect around 55-60 percent of open-market value. Some ex-local authority properties may reach 70-75 percent, always lender-specific.

Q: Will I need a RICS survey or certificates? A: Nearly always. RICS valuations and relevant structural or remediation certificates are central to refinance approval and may be required for the bridge itself.

Q: Is bridging regulated? A: Bridging for owner-occupiers is usually FCA-regulated, involving affordability checks and consumer protections. Most investment, conversion and developer exit bridges are unregulated.

Q: What is the exit plan in practice? A: Typically refinance to a mainstream mortgage once works and certifications are complete, or sell the asset. Lenders expect clear evidence that the exit is realistic within term.

How Kandoo helps

Kandoo connects you with specialist UK bridging lenders who understand non-standard construction and manual underwriting. We map your property’s characteristics to lender criteria, coordinate valuations and required certifications, and structure a realistic exit. Speak with us for an indicative LTV, draft terms and a timeline aligned to your works - before you bid or exchange.

Important information

This guide is for information only and is not personal advice. Bridging loans are secured and your property may be repossessed if you do not keep up repayments. Terms, rates and eligibility depend on your circumstances and lender policies.