Bridging finance for property companies

The market moment for fast capital

Bridging finance has moved from niche tool to mainstream driver of UK property activity. The total market was valued at around £10.9 billion and is projected to grow a further 25 percent over the next five years, reflecting a broad shift toward flexible capital in an uncertain rate environment. The loan book surpassed £10 billion in 2024 and is forecast to reach £12.2 billion by the end of 2025. That trajectory is not theoretical. Record quarterly completions and a quickening pace of processing show a sector geared for speed.

Speed matters because opportunities are time sensitive. Average timelines have compressed to around 32 to 43 days from offer to completion, a material advantage over conventional mortgages. Pricing has also eased. Average monthly rates slipped to roughly 0.81 percent in Q2 2025, with some data showing competitive transactions at around 0.64 percent. Loan‑to‑value sits near the low 50s, keeping leverage sensible and exits realistic. Most loans exit via sale, while a significant minority refinance onto buy‑to‑let as conditions permit.

Demand is diversified. While auctions remain a natural fit, investors increasingly use bridging to fund refurbishments, HMO conversions, commercial‑to‑residential schemes and EPC upgrades. That aligns with the wider market backdrop. Rents have risen strongly, regional yields are compelling and product innovation is widening access. Limited company ownership has expanded sharply too, with more landlords and professional operators purchasing through company structures for tax planning and succession reasons. In England and Wales, company‑held property is now counted in the hundreds of thousands and rising.

For property companies, the lesson is pragmatic. Bridging is about control over timing. Whether you are securing a discount at auction, freeing equity to refurbish or moving quickly on a regional asset with 6.5 to 12 percent gross yields, having reliable short‑term funding can be the difference between completing and missing out.

The right bridge turns a good opportunity into a bankable outcome.

Who gains most from bridging right now

If you run a property company or invest via a limited company, bridging can unlock transactions that standard lending cannot accommodate on a tight timetable. It suits buyers facing an auction deadline, developers tackling light or moderate refurbishments and landlords upgrading stock for EPC compliance. It is also effective when buying before selling, especially where additional security can be offered.

Investors targeting regional growth stories stand to benefit. Markets such as Greater Manchester have delivered yields materially above national averages, helping to neutralise higher funding costs. Where the exit is clear and the value‑add plan is credible, bridging provides the rapid liquidity to move from intention to completion.

Your bridging choices

1. Regulated residential bridge - purchase a primary residence or facilitate a chain break.

2. Unregulated investment bridge - buy‑to‑let, HMO conversions and flips via a company.

3. Refurbishment bridge - light to medium works with staged drawdowns.

4. Auction finance - immediate funding aligned to 28‑day or 56‑day timelines.

5. EPC upgrade bridge - capital for energy improvements ahead of refinancing.

6. Development exit bridge - repay build finance while marketing completed units.

7. No‑valuation or AVM products - speed where security and metrics allow.

The numbers that matter

Can you qualify and what lenders expect

Eligibility hinges on a coherent plan and a credible exit. Lenders will assess company structure, director experience and how the property will generate or unlock value. For regulated bridges on homes, personal affordability plays a role. For unregulated investment transactions, emphasis falls on the asset, works schedule, planning status and the exit via sale or refinance. Clean credit helps, but minor historic issues can be mitigated with strong security and a clear strategy.

Expect to provide corporate documents, ID and AML checks, proof of deposit, valuation access and a schedule of works if refurbishing. Limited companies should be prepared to give personal guarantees and supply recent accounts or SA302s. Where the plan involves buy‑to‑let refinancing, indicative terms from a long‑term lender strengthen the case. Kandoo can help package this evidence, shortlist lenders that fit your profile and manage the process so timelines stay tight without cutting compliance corners.

From application to completion

1. Define project, budget and exit plan in writing.

2. Share company, ID and property documents early.

3. Obtain decision in principle and outline terms.

4. Instruct valuation and begin legal due diligence.

5. Finalise works plan and insurance arrangements.

6. Review offer, fees and conditions with your broker.

7. Exchange, complete and draw funds to schedule.

8. Track milestones and prepare the exit well ahead.

Advantages and trade‑offs

Before you commit

A bridge should be sized around the exit, not the maximum available. Model your cash flow month by month, including contingency for delays and cost overruns. If you plan to refinance, sense check rental stress tests, EPC requirements and interest cover ratios in today’s market, not last year’s. Ensure legal titles, planning and licensing are clean, particularly for HMOs and mixed‑use assets. Vendors often value certainty over slightly higher offers, so keep your timeline realistic and your professional team aligned. Where possible, secure alternative exits such as a back‑up sale channel or indicative remortgage terms to reduce risk if markets move.

Alternatives to consider

1. Development finance for ground‑up or heavy refurb projects.

2. Term buy‑to‑let mortgages if timing is flexible and property is lettable.

3. Second‑charge loans to release equity without refinancing the first charge.

4. Business loans secured on company assets for non‑property needs.

5. Mezzanine finance to reduce equity input on larger schemes.

Frequently asked questions

Q: How quickly can I complete on a bridge? A: Many cases complete within 32 to 43 days once the offer is issued, subject to valuation, legal work and the complexity of the title.

Q: What rate should I budget for? A: Recent averages sit around 0.81 percent per month, with competitive cases near 0.64 percent depending on LTV, asset type and borrower profile.

Q: Do I need an exit plan from day one? A: Yes. Most exits are via sale or remortgage to buy‑to‑let. Lenders will want evidence that your exit is achievable within the term.

Q: Can limited companies borrow for investments? A: Yes. Unregulated company bridges are common for buy‑to‑lets, HMOs and refurbishments, often supported by director guarantees and a robust works plan.

Q: Are early repayments penalised? A: Many products have no early repayment charges. You typically pay interest for the time used, plus any agreed fees.

Q: What LTV is typical? A: Expect around 50 to 70 percent, depending on asset class, location and experience. Lower leverage usually means sharper pricing.

How Kandoo supports your next move

Kandoo is a UK‑based retail finance broker that connects property companies with experienced bridging lenders. We assess your goals, shortlist the most suitable options and negotiate terms that balance speed, price and flexibility. With proactive case management, we keep valuations, legals and underwriting moving so you can complete with confidence.

Important information

This guide provides general information and is not personal advice. Bridging loans are secured on property and may be regulated or unregulated. Your property may be repossessed if you do not keep up repayments. Always seek professional advice before committing.