Bridging finance for property upgrades

The quick route to upgrading your property

Bridging finance is a short-term loan designed to help you move quickly. In a market where chains slip and auction deadlines loom, speed is often the difference between winning a deal and missing out. Recent UK data shows contributor gross lending reached £209.4 million in Q3 2025, up 4.9% on the previous quarter, with average completion times dropping to 41 days. That acceleration reflects what borrowers value most right now: certainty and pace.

Demand is being driven by investors and homeowners looking to unlock value through refurbishments, conversions, and green upgrades to meet EPC standards. Investment purchases rose from 16% to 20% of transactions, while re-bridging increased from 7% to 12% as sellers take longer to find the right buyer. The sector is scaling too. Forecasts suggest the UK bridging loan book could reach around £12.2bn by the end of 2025, supported by higher loan-to-value ratios up to 75% for larger projects.

Prices matter. Average quoted rates around 0.64% per month in 2025 are competitive for short-term borrowing, with many loans regulated where a borrower’s home is involved. For time-sensitive works like kitchen refits, energy efficiency upgrades, HMO conversions, or office-to-resi projects, bridging can deliver funds without the delays of traditional mortgages. It is not a forever solution. You will need a clear exit, typically a refinance or sale, and a realistic timeline that covers the build schedule and the inevitable snags. Used with discipline, it is a strategic tool that can transform the numbers on your next upgrade.

Understanding APR is not just about percentages - it is about knowing what you will pay in real terms. The right bridge pairs speed with a credible exit.

Who benefits most

If you are buying at auction, refurbishing to raise value, converting to HMO, or improving EPC ratings ahead of a rental, bridging gives you speed and flexibility. Homeowners facing a broken chain or needing funds for essential works before a remortgage can also benefit. Investors targeting under-valued assets during market dips use bridging to move fast, complete light works, and refinance onto longer-term products once value is added. With completion times averaging around 41 days and LTVs up to 75% on some cases, it suits borrowers who have a defined exit and a tight plan.

Funding paths to consider

1. Regulated bridging for upgrades to your main residence

2. Unregulated bridging for investment properties or developments

3. Light refurbishment finance for kitchens, bathrooms, and redecoration

4. Heavy refurbishment bridging for structural changes and conversions

5. Second charge bridging to release equity without remortgaging

6. Re-bridging to extend time while selling or completing works

7. Auction finance to complete within 28 days

What it costs and what it could deliver

Who is likely to qualify

Lenders focus on the asset, the plan, and the exit. Expect a detailed look at property value, refurbishment schedule, and how you will repay - usually through sale or a remortgage once improvements are complete. Credit history matters, but workable cases with clear security and a credible exit can still proceed. Loans can be first or second charge, with second charges suiting those who prefer not to disturb an existing mortgage. For regulated bridges secured on your home, consumer protections and affordability checks apply. Kandoo can help you compare lenders that accommodate short timelines, staged works, HMO conversions, and green upgrades to meet EPC targets. Evidence of contractor quotes, planning status where relevant, and cash flow for contingencies strengthens your application. The more robust your plan, the more competitive the terms are likely to be.

From enquiry to completion in clear steps

1. Outline project, budget, and exit strategy in writing

2. Share property details, photos, and recent valuations

3. Receive indicative terms and check total cost

4. Instruct valuation and legal due diligence promptly

5. Finalise loan offer and facility structure

6. Draw funds to begin or complete works

7. Monitor costs and timeline against exit plan

8. Refinance or sell and redeem the bridge

Upsides and trade-offs at a glance

Before you commit

A bridge should be sized to the project, not to the maximum available. Build in contingency for cost inflation, contractor delays, and supply snags. If you plan to refinance, stress-test your numbers at higher mortgage rates and ensure the post-works valuation is realistic for the local market. For sales exits, allow for longer marketing periods and potential price negotiations. Check whether you need planning consent, building control sign-off, or licensing for HMOs, and sequence works to meet EPC targets efficiently. Finally, understand all fees upfront, including minimum interest periods, exit fees, and legal costs, so there are no surprises when you redeem.

If bridging is not the fit

1. Further advance or remortgage with your current lender

2. Secured homeowner loan for medium-term borrowing

3. Development finance for heavy structural works

4. Government-backed energy upgrade schemes where eligible

5. Personal loan for small, cosmetic improvements

Common questions, answered

Q: How quickly can I complete a bridge? A: Many complete around 41 to 43 days, sometimes faster with proactive legals and a straightforward valuation.

Q: What rates should I expect? A: Typical quotes sit near 0.64% per month, with complex or re-bridging scenarios sometimes closer to 0.85% per month.

Q: How much can I borrow? A: Up to around 75% LTV is available with many lenders, though average LTVs are closer to the mid-50s depending on the case.

Q: Can I use a bridge for EPC upgrades? A: Yes. Demand is rising for green improvements, from insulation to new windows and solar, often to meet rental standards.

Q: What if my property does not sell in time? A: Re-bridging is possible and has grown in use, but it adds cost. Where feasible, consider refinancing onto a term product instead.

Q: Is second charge bridging an option? A: Yes. It can release equity without disturbing an attractive first mortgage, though pricing and risk should be assessed carefully.

How Kandoo helps

Kandoo is a UK-based retail finance broker that compares bridging options across a wide panel, focusing on speed, transparency, and fit for purpose. We help shape your exit strategy, prepare documents that lenders want to see, and coordinate valuation and legal steps to keep timelines tight. Speak to us for a tailored view on costs, terms, and the lenders most aligned to your project.

Important information

This guide 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 assess affordability, risks, and legal requirements before proceeding.