Bridging finance for part-completed builds

Momentum for unfinished projects

Bridging finance can turn a stalled build into a completed home or saleable asset. With the UK bridging loan market expected to reach around £12.2bn in 2025, demand is rising for short-term funding that moves faster than traditional mortgages. Completions have accelerated, and lenders have sharpened their appetite for practical, real-world use cases like part-completed residential developments, refurbishments and conversions.

Speed is the draw. Average completion times are often measured in weeks rather than months, with many cases landing in around 38 to 43 days. In certain refinance scenarios, funding can be arranged far quicker. That matters if you are facing a contractor deadline, an insurer’s stipulation to make safe, or an impending repayment date on existing finance. Where a high-street lender might step back due to non-standard security or a missing completion certificate, specialist bridging lenders lean in when there is a credible exit.

Costs have also become more competitive. Headline monthly rates around 0.81% are available for the strongest cases, while bespoke deals for part-finished schemes are regularly structured at a simple monthly rate plus base, reflecting risk and leverage. Typical loan-to-value ranges from about 55% to 75%, depending on the strength of your plan, valuation and experience. Terms are short, often up to 12 months, which keeps interest contained and aligns with build and sales timelines.

Crucially, bridging has evolved. Purchases now represent a larger slice of activity, not just refinancing. Development exit loans allow nearly finished schemes to refinance out of costlier or expiring facilities, release equity, and sell units in a measured way. Partial releases can be made as homes complete and sell, reducing interest and stress. In short, bridging is no longer a last resort. Used well, it is a practical tool to complete and realise value.

The right bridge is less about rate and more about certainty, timescales and a clean exit.

Who benefits most

If you are a homeowner mid-renovation, a self-builder whose contingency has run low, or a small-to-medium developer with a part-completed site, bridging can provide the working capital to finish and move on. It can also help landlords refurbish to EPC targets, release equity for the next purchase, or manage a chain break where a sale has slipped. For professionals juggling multiple trades and drawdowns, the ability to refinance quickly into a flexible facility can be the difference between delay and delivery.

Funding routes to consider

1. Part-completed build bridging - short-term finance secured against the property to finish works and achieve completion.

2. Refurbishment bridging - light to medium refurb funding for kitchens, bathrooms, reconfiguration and compliance upgrades.

3. Development exit finance - refinance a nearly finished scheme, reduce monthly cost and sell units steadily.

4. Auction bridging - fast completions to meet strict auction deadlines when a lot is part-finished.

5. Re-bridging - move from an existing bridge to a new one if timelines have shifted.

6. Second charge bridging - raise funds while retaining an existing first mortgage, subject to consent.

Cost, timing and risk at a glance

Can you qualify

Lenders focus on the asset, the works and the exit. Expect to evidence the property’s current condition, schedule of works, costs to complete and permissions in place. A realistic valuation is critical, including current value and gross development value on completion. Experience helps, but first-timers can qualify if they surround themselves with competent professionals and a sensible contingency.

Loan-to-value is often the gatekeeper. Around 55% LTV is common for straightforward refurbishments, while stronger cases on part-completed residential builds may reach up to roughly 75% with the right lender and exit. Terms typically sit around 6 to 12 months, extendable by agreement. If there is existing finance, a development exit facility can refinance it, release pressure and allow phased sales. Where a chain has broken, a short bridge can keep your purchase alive while your sale catches up.

Kandoo works with a panel of UK lenders, matching your project to the right product and timescale. That means clear expectations on documents, valuation, and legal progress from day one, so you move quickly and avoid unnecessary cost.

From enquiry to funds

1. Share your project, costs and desired timescales with us.

2. Receive matched options and an initial lending view.

3. Instruct valuation and legals once heads of terms issued.

4. Finalise the works schedule and exit strategy in writing.

5. Lender completes due diligence and underwrites the case.

6. Sign documents and satisfy any remaining conditions.

7. Funds are released to complete or continue works.

Advantages and trade-offs

Points to check before proceeding

Before you commit, pressure-test your exit. If you intend to refinance, confirm the target lender’s criteria for completed works, certificates and income. For a sale exit, check comparable evidence and expected time to sell. Build in a realistic contingency for materials and labour, and ensure insurances are appropriate for a site under construction. Read fee schedules carefully so arrangement, valuation, legal and potential exit costs are understood. Finally, plan your timeline around searches and legal requirements in your jurisdiction. A clear path removes uncertainty, reduces cost, and avoids last-minute compromises.

Alternatives if a bridge is not right

1. Further advance or product transfer with your current lender.

2. Specialist refurbishment mortgage with retained funds on inspection.

3. Unsecured personal or business loan for smaller works.

4. Equity release or second charge for homeowners with strong equity.

5. Joint venture funding with a profit share in lieu of interest.

Frequently asked questions

Q: How fast can funding complete? A: Many cases complete in around 38 to 43 days once valuation and legals are underway. Straightforward refinances can move faster when documents are in order.

Q: What rates should I expect on a part-completed build? A: Strong cases see monthly rates around 0.81%, with bespoke pricing for complexity. Some lenders price from a simple monthly rate plus base, reflecting risk and leverage.

Q: How much can I borrow against the property? A: Typical LTV sits near 55% for simple refurbs and can reach up to roughly 75% on suitable residential schemes with a robust exit and valuation.

Q: What is a development exit loan? A: It refinances a nearly finished project, often reducing monthly cost and allowing staged unit sales with partial releases, so you avoid rushing sales under pressure.

Q: What counts as a credible exit? A: A sale with realistic comparables, a decision in principle for a term mortgage, or a plan to refinance after snagging and certification. The exit should match your timeline.

Q: Can first-time developers get bridging? A: Yes, if the project is sensible, costs are clear, and experienced contractors are in place. Lenders value strong professional teams and adequate contingencies.

How Kandoo can help

Kandoo is a UK-based retail finance broker that connects you with lenders suited to part-completed builds, refurbishments and development exits. We prioritise speed, clarity and a clean exit from the outset, helping you compare rates, fees and timelines. Share your project and timescales, and we will curate options so you can finish with confidence.

Important information

This article is for information only and does not constitute advice. Bridging loans are secured against property and may be repossessed if you do not keep up repayments. Always seek personalised guidance before committing to any finance.