Bridging finance for rapid completions

The UK market is moving quickly - here is how to keep up

Bridging finance is designed for moments when timing matters more than anything. In the UK, the market has accelerated: the national bridging loan book pushed past £10bn for the first time and is projected to reach £12.2bn by the end of 2025. That surge reflects one thing clearly - demand for fast, flexible capital that can complete deals conventional mortgages cannot match on speed.

Speed is the headline. Average completions were around 38 days in late 2024, and the start of 2025 saw cases finalising in as little as 32 days, the quickest pace recorded in years. Even through mid 2025, many transactions completed within roughly six weeks. That sort of pace helps buyers secure auction lots, purchase before their sale completes, or move quickly on properties that are uninhabitable and therefore unmortgageable until works finish.

Cost has become more competitive too. Average monthly rates drifted down to around 0.81% in Q2 2025, with some brokered quotes averaging closer to 0.64% for suitable cases where borrowers bring strong equity and lower LTVs. Typical loan-to-value sits around 52% to 54%, with some lenders offering up to 75% for the right security and profile. The upshot is simple: short-term finance is more accessible, especially for buyers who can demonstrate a solid exit.

Demand is broadening. Investment purchases rose to around 23% of bridging usage in early 2025, overtaking auctions as a leading purpose. Regulated activity has grown as well, with regulated refinance rising and regulated loans now forming the majority of transactions. Brokers remain optimistic, with over seven in ten expecting further growth through 2025 as quarterly lending continues to climb.

Understanding APR is one part of the picture. What matters in practice is what you will pay and when, and how you exit. Most borrowers clear a bridge through sale or refinance. With 75% of exits achieved by property sale and close to one fifth via buy-to-let remortgage, the model is straightforward - secure the asset, add value or wait for your chain, then repay promptly.

The aim is not just speed - it is certainty. The right bridge lets you commit, complete, and move on.

If you are weighing a time-critical purchase or a refurbishment that unlocks refinancing, bridging can be a smart tool when used deliberately and priced correctly.

Who stands to benefit

Bridging suits UK buyers who value certainty of completion. Homeowners can buy before selling to avoid breaking a chain. Landlords use bridges to acquire stock that needs work or to convert properties to HMOs. Developers and investors can move on off-market opportunities quickly, then refinance once works complete or tenants are in place. Businesses can leverage property equity to cover short-term cashflow, tax liabilities, or staged project costs. If you need funds in weeks rather than months and have a clear route to repay, bridging is purpose-built for that gap.

Your funding routes at a glance

1. Regulated bridging to purchase a new main residence before selling your current home.

2. Unregulated bridging for investment or commercial acquisitions and refurbishments.

3. Auction finance with 28-day or 56-day completion deadlines.

4. Light refurbishment bridge for kitchens, bathrooms, redecoration and minor layout tweaks.

5. Heavy refurbishment bridge for structural changes, conversions, or HMO upgrades.

6. Development exit bridge to refinance and release capital while marketing units.

7. Bridge-to-let facility transitioning to a buy-to-let mortgage post-works or tenancy.

What it means for your bottom line

Do you qualify and what lenders look for

Eligibility is primarily about strength of security, the plausibility of your exit, and your ability to service the loan if needed. Most lenders are comfortable where the loan-to-value is restrained - the UK average sits near the low to mid 50s - because lower leverage keeps pricing competitive and risk measured. For stronger cases, some will stretch to higher LTVs provided there is additional security or demonstrable experience.

Income and credit history matter, but they are weighted against the asset and exit. Minor credit issues can be acceptable where equity is robust, works are defined, and the plan is realistic. For regulated loans secured on your home, affordability and consumer protections apply. For unregulated investment cases, lenders will still expect evidence that you can meet interest if not retained or rolled up.

You will need a clear exit strategy. Most borrowers sell to repay, or refinance onto a buy-to-let once refurbishments complete and rental income supports a term mortgage. Independent valuations, legal due diligence, and suitable insurance are standard. Kandoo can help package the case, compare lenders across the market, and position your application to complete on time.

From enquiry to completion - the fast route

1. Share your property details, purchase price and timeline.

2. Confirm exit plan and preferred term and LTV.

3. Receive indicative terms and compare options.

4. Instruct valuation and provide documents promptly.

5. Lender issues offer subject to legals.

6. Solicitors complete searches and enquiries.

7. Sign documents and arrange funds drawdown.

8. Complete purchase or refinance and begin works.

Balancing the upsides and trade offs

Read this before you sign

A bridge should be the right size for your exit. Stress test timings and values. If you need six months, ask what 9 or 12 months would cost in case trades run late or contractors slip. Check whether interest is retained or rolled up, and how extensions are priced. Confirm early repayment policies and any minimum interest periods. Build a buffer for legals, valuations, and contingencies on works. For sale exits, speak to local agents about realistic timeframes and pricing. For refinance, ensure your intended lender will accept the property once refurbished and that rental stress tests are met.

A clear exit is the difference between a smart bridge and an expensive delay.

If anything in your plan depends on a single event, line up a fallback - an alternative lender, additional security, or extra cash to reduce LTV if valuations come in soft.

Alternatives to consider

1. Agreement in principle with a lender willing to expedite a standard mortgage.

2. Secured loan or second charge against existing equity to raise deposit.

3. Developer exit facilities or short term commercial mortgages.

4. Joint venture capital to reduce leverage and share risk and returns.

5. Personal or business overdrafts for smaller, short duration cash needs.

Your questions answered

Q: How fast can I realistically complete? A: Recent UK data shows average completions around 32 to 43 days depending on the quarter. Well prepared cases with prompt legals often close near the lower end.

Q: What will it cost monthly? A: Typical pricing ranges around 0.64% to 0.81% per month, influenced by LTV, property type, and borrower profile. Lower leverage and strong exits usually secure sharper rates.

Q: How much can I borrow against the property? A: Many lenders are comfortable around 52% to 54% LTV on average, with selected cases rising to approximately 75% where security and experience justify it.

Q: What is a common exit strategy? A: Most borrowers sell the property to repay. A sizeable minority refinance to buy-to-let after refurbishment or once tenants are in situ and the mortgage stress tests are met.

Q: Are regulated bridges available for homeowners? A: Yes. A large share of the market is now regulated, supporting buy-before-sale moves and chain repair, subject to affordability and consumer protections.

Q: Can I fund refurbishments? A: Yes. Light and heavy refurbishment bridges can release funds in tranches or upfront, enabling works that unlock resale or refinance.

How Kandoo helps you move first

Kandoo is a UK-based retail finance broker that compares multiple bridging lenders to secure competitive rates and timelines. We package your application, manage valuations and legals, and keep the process on track so you can complete with confidence. Speak to us for tailored terms and a route to rapid completion.

Important information

Bridging is short term finance and not a long term borrowing solution. Your property may be repossessed if you do not keep up repayments. All finance is subject to status, credit checks, and valuation. Terms and availability can change without notice. Independent advice is recommended for regulated borrowing.