Bridging finance for prime London homes

Updated

Dec 13, 2025 9:15 PM

Written by Nathan Cafearo

UK-focused guide to prime London bridging covering costs, risks, steps, and how Kandoo helps secure fast funding with solid exits.

I am a business

Looking to offer finance options to my customers

Find out more

Apply for a loan

I'd like to apply for a loan

Apply now

Apply for Halal finance

I'd like to apply for Halal finance

Apply now

Why speed is defining prime London purchases

Prime London property often rewards decisiveness. When a Kensington townhouse or a Marylebone penthouse appears at the right price, buyers who can move first usually secure it. Bridging finance has matured into a mainstream tool for exactly these moments. UK bridging volumes climbed to roughly £6.5bn in 2024 with double-digit growth the following year, while regulated bridging completions set fresh records. Typical terms remain short at around 12 months with average loan-to-value near 70%. The headline advantage is speed: end-to-end timelines of 10 to 28 days are achievable with a clear exit plan and responsive legal work.

Market dynamics have reinforced the need for fast funding. Following fiscal changes, listings of £2m-plus London homes jumped, and inventory at £5m-plus has been materially higher year on year. More choice and motivated sellers create narrow windows to act. Buyers using bridging can exchange quickly, then refinance or sell on their schedule. At the same time, mortgage pricing improved through 2025 as base rates eased, with some five-year fixes for low-LTV, high-net-worth borrowers landing in the 3 to 4 percent range. Better mortgage availability strengthens the classic bridge-to-term exit and reduces the effective cost of holding short-term finance.

Pricing reflects risk and quality of collateral. Prime London homes are liquid and widely demanded, so lenders often offer sharper monthly rates compared with riskier assets. In 2025, bridging rates commonly ranged between 0.5% and 2% per month depending on LTV, exit clarity and borrower profile, with prime security tending towards the lower end. Regulated bridging has also expanded as homeowners manage chain breaks, giving owner-occupiers a safety valve when timings slip. Auctions remain a staple use case too, where 28-day completions are common and certainty of funds can be the winning bid differentiator.

Understanding APR is not just about percentages - it is about knowing what you will pay in real terms. The objective is simple: secure the property now, then exit cleanly via sale or refinance once longer-term finance or disposal is ready. Done well, bridging is a measured, tactical instrument for discerning buyers rather than a last resort. The key is transparency on costs, disciplined timelines and expert guidance from a broker who knows the London market.

Speed without clarity is expensive. Speed with a credible exit is a strategy.

Who will benefit most

This guide suits UK-based buyers targeting prime London homes who need speed and certainty. That includes high-net-worth individuals pursuing off-market or newly listed opportunities, families bridging a chain break to secure an onward purchase, and professionals buying at auction. It also fits investors funding light refurbishments or energy upgrades ahead of refinance, and international buyers seeking to lock in a prime address while arranging longer-term facilities. If you prioritise execution confidence and have a realistic sale or mortgage exit in sight, bridging can be a pragmatic solution.

Your bridging options today

Regulated chain-break bridge to secure an onward home before sale.
Auction purchase bridge with funds in place before bidding.
Prime acquisition bridge ahead of private bank mortgage completion.
Light refurb or EPC uplift bridge to add value before refinance.
Developer exit bridge to complete and market unsold units.
Second-charge bridge against existing equity to release speed capital.

Cost, impact, returns and risks

Scenario	Typical term	Typical LTV	Monthly rate	Fees	Potential impact or return	Key risks
Chain-break purchase	6-12 months	60-70%	0.6%-1.0%	Arrangement 1%-2%, legal, valuation	Secures desired home without waiting for sale	Sale delays may extend costs; exit timing risk
Auction acquisition	3-9 months	60-70%	0.7%-1.2%	Arrangement 1%-2%, auction fees	Completes within 28 days and protects deposit	Survey surprises; resale or refinance slippage
Prime bridge to mortgage	6-12 months	55-65%	0.5%-0.9%	Arrangement 1%-2%, broker, legal	Locks in asset, refinance at 3%-4% fixes possible	Rate shifts; lender criteria changes; valuation variance
Light refurb or EPC uplift	6-12 months	60-70%	0.8%-1.3%	Arrangement 1%-2%, works contingency	Value uplift, improved refinance terms	Build delays, cost overruns, planning constraints
Developer exit bridge	3-12 months	55-65%	0.9%-1.5%	Arrangement 1%-2%, monitoring	Time to sell units for stronger prices	Market softening; sales absorption slower than forecast
Second charge on existing home	3-12 months	Up to 65% combined	0.9%-1.6%	Arrangement 1%-2%, consent fees	Access capital without remortgaging	Higher pricing; consent and priority issues

Can you qualify

Lenders focus on three pillars: exit certainty, conservative leverage and high-quality security. A well-evidenced exit may be a contracted sale with clear completion timelines or a mortgage offer in principle supported by affordability and valuation. Most prime residential bridges in London sit below 70% LTV, and stronger pricing is common under 60% LTV. Prime collateral helps, particularly properties with broad buyer pools and minimal legal or title complexity.

Your profile matters too. Clean credit, verifiable income, and previous property experience all help. For regulated bridging, consumer protections apply and lenders assess affordability for the term. For unregulated investor transactions, lenders emphasise track record and project viability. Kandoo can help package your case so underwriters see a concise, credible story: the asset, the numbers, the plan, and the exit. Expect requests for identification, proof of funds for deposit and fees, valuation access, planning or works details if refurbishing, and solicitor details who can transact at pace.

How the process typically runs

Outline your objective, timeline and exit strategy in writing.
Share key documents and request decision in principle.
Secure valuation and legal instructions in parallel quickly.
Finalise structure, LTV, pricing and fee schedule.
Lender completes underwriting and issues formal offer.
Solicitors complete searches, enquiries and drawdown conditions.
Funds are released and you complete the purchase.
Deliver exit: sale exchange or refinance to mortgage.

Advantages and trade-offs

Benefit	Why it matters	Trade-off
Speed of completion	Win competitive bids and meet auction deadlines	Higher monthly cost than mortgages
Flexibility on complex cases	Works where mainstream lenders are slower	More documentation on exit and security
Short terms	Pay for months used, not years	Need disciplined timeline management
Prime collateral pricing	Better rates for high-quality London assets	Still sensitive to LTV and borrower profile
Certainty of funds	Strengthens negotiating position with sellers	Upfront fees and valuation costs apply

Points to check before committing

Clarity beats optimism. Map your exit timelines conservatively and test sensitivities. If you plan to refinance, verify that your target lender’s criteria, income assessment and stress tests fit your circumstances at the projected valuation. If you intend to sell, speak with local agents about realistic pricing and absorption times, and allow headroom for conveyancing delays. Build a cash buffer for interest, fees and unexpected works. Ensure both your solicitor and the lender’s solicitor can deliver at pace and that the valuation scope matches the property’s nuances, especially in listed or leasehold situations. Finally, compare total cost of funds against the benefit you gain by moving quickly, not just the monthly rate.

Alternatives you should evaluate

Negotiate a longer completion with a conditional exchange.
Private bank mortgage with expedited underwriting and low LTV.
Remortgage or further advance on existing assets.
Securities-backed lending or portfolio line of credit.
Vendor financing or retention held on completion.
Joint venture equity to reduce leverage and costs.

Frequently asked questions

Q: How fast can a prime London bridge complete? A: With a clean case and responsive legals, many lenders target 10 to 28 days. Prepping documents early and running valuation and legal work in parallel shortens timelines.

Q: What monthly rate should I expect? A: Prime residential security with clear exits can see 0.5% to 1.0% per month at lower LTVs. Complex cases, higher LTVs or second charges can price higher.

Q: What is a credible exit strategy? A: A signed sale contract with completion date, or a mortgage refinance evidenced by an agreement in principle, affordability support and a realistic valuation.

Q: Are fees significant? A: Expect an arrangement fee around 1% to 2%, plus valuation, legal fees and potential exit fees. Always compare the total cost of funds, not just the headline rate.

Q: Is regulated bridging different? A: Yes. For owner-occupied property, consumer regulations apply and lenders assess affordability. Disclosures are clearer and protections stronger compared with unregulated investor loans.

Q: Can I fund refurbishments? A: Yes. Many lenders support light works and EPC upgrades. Provide schedules of works, costings, contingencies and how improvements enhance exit value or mortgageability.

How Kandoo can help

Kandoo is a UK-based retail finance broker that curates bridging options aligned to prime London transactions. We engage lenders who understand high-quality collateral, assemble your case for swift underwriting, and keep valuation and legal work moving. Our focus is clarity on costs, timelines and exits so you secure the property with confidence.

Important information

Bridging is short-term and can be expensive if exits slip. Your property may be at risk if you do not keep up repayments. This guide is general information, not advice. Seek independent legal and tax advice and review lender documents carefully before proceeding.