Bridging finance for quick purchases

The fast lane of property finance

Bridging finance is designed for speed. When you need funds to secure a property before your mortgage or sale completes, a bridge can deliver the certainty that traditional lending sometimes cannot match on timing. In the UK, this market has scaled rapidly. The total bridging loan book surpassed £10bn at the end of 2024 and is forecast to reach £12.2bn by the end of 2025. That growth is not abstract - completions hit a record £2.30bn in the final quarter of 2024 and lenders expect momentum to continue as buyers seek quick, flexible solutions.

Price matters, and the trajectory is encouraging. Average monthly interest has eased to around 0.81% in Q2 2025, helped by stable base rates and strong lender competition. Lending volumes show resilience too, with gross lending at roughly £199.7m in Q2 2025 and average loan-to-value near 54%. Processing is also getting faster. Some providers recorded average completion in 43 days from offer in the first half of 2025, while quarterly snapshots showed processing dipping to 32 days - the quickest since 2015.

Why is this relevant to ordinary buyers and investors? Because timing wins deals. Auctions demand completion within tight deadlines. Chain breaks require immediate cash to keep a purchase alive. Investors expanding portfolios want to seize opportunities - and in Q1 2025, investment purchases rose to 23% of bridging use, reflecting this agile approach. Meanwhile, 58% of bridging loans in the first half of 2025 were regulated - for residential use by the borrower or family - signalling that homeowners increasingly rely on bridging to move swiftly while planning their exit through sale or remortgage.

Bridging is not a replacement for a mortgage. It is a short-term funding tool, typically 3 to 18 months, intended to cover a gap with a clear exit. Higher LTV options up to 75% are common, yet averages sit lower due to more equity-rich applicants, which in turn has supported sharper rates. Most exits are straightforward - property sale remains the leading route, followed by buy-to-let remortgage - but careful planning is vital. A realistic timeline, costed refurb plan if relevant, and a credible exit reduce risk and improve approval odds.

A good broker brings order to the pace. At Kandoo, we work with a panel of UK lenders to compare rates, fees and speed reliably, matching you with the structure that fits your use case - auction purchase, chain repair, refurbishment or regulated refinance. The goal is simple: give you the clarity to act fast, and the confidence to know what you will pay in real terms.

Next step: sense-check your exit route first, then price the total cost of funds against your timeline.

Speed secures opportunity. Clarity protects outcomes.

Who benefits most

If you are buying at auction, facing a chain break, or need to complete quickly on a new home before your current sale, bridging can be an effective solution. Investors can use it to buy, convert or refurbish property where time-sensitive pricing makes speed valuable. Homeowners pursuing regulated refinance to unlock short-term equity are also well served, and that share has recently risen. If your timeline is measured in weeks rather than months, and you have a defined exit, bridging can deliver certainty without the delays of traditional underwriting.

Popular routes to bridge today

1. Auction purchases with 28-day or similar deadlines.

2. Chain repair to complete your new home before your sale.

3. Light to medium refurbishments to add value quickly.

4. Conversions to HMO or mixed-use with clear works schedule.

5. Regulated refinance for short-term residential funding.

6. Developer acquisitions where speed secures the site.

7. Day-one remortgage after purchase to release value.

Costs, payback and what could move the needle

Eligibility in plain English

Lenders look for a credible borrower, strong security and a believable exit. You will typically need a UK property with a clear title and valuation that supports the loan amount. While credit checks apply, bridging focuses more on the asset and exit than on strict affordability metrics. If you are a homeowner seeking regulated bridging, lenders consider personal circumstances carefully, including your plan to sell or remortgage and the timeframe to do so. For investors, experience can help but is not always essential if the proposal is sound.

Loan-to-value tolerance varies, but many lenders cap around 70% to 75% for standard residential security, with lower caps for unusual or commercial assets. You should expect to provide identification, proof of address, property details, planning or works information if refurbishing, and solicitor engagement early. A full breakdown of costs - including fees, interest method, and any retained or rolled interest - is examined alongside the exit plan.

Kandoo can help you assess the fit before you commit. We source lenders whose criteria match your scenario, flag any red flags early, and outline likely timescales. That preparation often saves days, which in bridging can mean the difference between completing on time or missing out.

From enquiry to completion - the quick path

1. Share your property details, timeline and exit plan.

2. We compare lenders for rate, fees and speed.

3. Receive an agreement in principle to firm up figures.

4. Valuation instructed and legal work kicks off promptly.

5. Lender underwrites documents and confirms conditions.

6. You sign final offer - funds are released to solicitors.

Advantages and trade-offs at a glance

Read this before you sign

Bridging is effective when the exit is solid. Build in time buffers. Property sales can slip, valuations can surprise and legal work can uncover issues that add days. Check how interest is charged - serviced monthly, retained for the term, or rolled up - and understand the total cost under different completion dates. If you are refurbishing, make sure your schedule and contractor capacity are realistic, with contingency for materials and approvals.

Pay attention to fees: arrangement, legal costs on both sides and valuation charges. Ask whether there are minimum interest periods or early repayment fees. If your plan is to remortgage, secure an agreement in principle early and monitor product availability. Markets move. Finally, ensure your conveyancer is comfortable with bridging - a responsive legal team is often the single biggest determinant of speed.

If bridging is not the only answer

1. Standard mortgage with fast-track underwriting.

2. Second charge loan against existing equity.

3. Personal loan for small, time-limited gaps.

4. Development finance for heavy works and ground-up builds.

5. Vendor finance or delayed completion with the seller.

Common questions answered

Q: How quickly can I get funds? A: Many cases complete in 32 to 43 days, depending on valuation access, legal complexity and how quickly documents are provided.

Q: What are typical rates and fees? A: Recent averages show monthly interest around 0.81%, with some cases nearer 0.64% for low LTV, plus 1% to 2% arrangement fees and standard legal and valuation costs.

Q: How much can I borrow against the property? A: Average LTVs sit near 54%, with maximums up to 75% on suitable security. Commercial or complex assets may attract lower caps.

Q: What are common exit strategies? A: Most borrowers exit via property sale or buy-to-let remortgage. Having an offer in principle for remortgage can add certainty.

Q: Are regulated bridging loans available for my home? A: Yes. A significant share of the market is regulated for residential use, including chain repair and short-term refinance for homeowners.

Q: Can investors use bridging for portfolio growth? A: Yes. Investment purchases have grown strongly, with fast processing helping buyers secure HMOs, refurbs and quick-turnaround deals.

How Kandoo can help you move faster

Kandoo is a UK-based retail finance broker that compares multiple bridging lenders for speed, cost and criteria fit. We help structure your case, organise valuations promptly and coordinate with solicitors to keep timelines tight. You will get clear pricing, likely timescales and a straight view of the risks so you can proceed with confidence. Speak to us today to test your exit and secure indicative terms quickly.

Important information

Bridging loans are secured on property and may be regulated or unregulated. Your property may be repossessed if you do not keep up repayments. Costs vary by lender and case. Always consider independent legal and financial advice before proceeding.