Bridging finance for rental property

Seize opportunities in a fast rental market

Bridging finance exists to do one thing well: move quickly. In a property market where attractive rentals can be snapped up in days, a short-term bridge can secure the purchase while you sort the longer-term mortgage. Across the UK, gross lending has remained resilient into 2025, with the total bridging loan book forecast to reach £12.2bn. The trend is clear. Investors and landlords are turning to bridging because it delivers speed, flexibility, and higher loan-to-value options when timing matters most.

This year, investment purchases have become the leading reason to use bridging, rising to nearly a quarter of all loans. That reflects confidence from portfolio landlords and first-time investors alike. Bridging is also proving useful beyond purchases. Landlords in London and other high-demand areas are using it to release equity, complete refurbishments, and manage chain breaks. For auction buyers, where completion is often required within 28 days, the ability to arrange funds in days rather than weeks can be the difference between winning and walking away.

Crucially, bridging fits the real mechanics of rental investing. Higher LTV ratios up to around 75% are available, sometimes more when supported by additional security. That can fund both acquisition and works, then roll into a standard buy-to-let mortgage once the property is mortgageable and the rental numbers stack up. In some cases, specialist lenders will also advance a portion of refurbishment costs up to around 85% LTV for light works, helping you upgrade quickly for better yields and EPC compliance.

Understanding APR is not just about percentages - it is about clarity on total cost and exit timing.

With terms typically between 3 and 12 months, the key is planning your exit from day one, whether that is a refinance to a buy-to-let mortgage or a sale. Do that well, and bridging becomes a controlled tool rather than a risk. In a market that rewards decisive action, it can help turn a good rental prospect into a performing asset.

Who benefits most

If you are a UK landlord or aspiring investor looking to secure a rental property quickly, bridging can help. It is particularly suited to buyers facing tight deadlines, such as auctions or chain breaks, and those purchasing unmortgageable or under-rented properties that need refurbishment before a mainstream lender will consider them. Portfolio landlords can use bridging to acquire, convert to HMO, or refinance at improved values. Homeowners becoming accidental landlords, and business owners using mixed-use premises, also find bridging useful where timing and flexibility matter. In London and other competitive regions, bridging can create the certainty sellers demand while you arrange your long-term finance.

Your flexible routes to funding

1. Purchase-only bridge - secure the property fast, refinance later to buy-to-let.

2. Purchase plus refurbishment bridge - fund acquisition and light works before exit.

3. Auction finance - rapid drawdown to meet 28-day completion deadlines.

4. Chain-break bridge - buy your next home or rental while selling another.

5. Re-bridge or refinance bridge - extend or reshape an existing short-term facility.

6. Heavy works or conversion bridge - specialist option for more complex projects.

Costs, returns and the moving parts

Do you qualify

Eligibility is broader than many expect. Lenders typically consider homeowners, landlords and limited company SPVs, as well as experienced investors. Credit issues and complex income can be acceptable if the asset and exit stack up. You will need suitable UK property as security, with acceptable valuations and clear legal title. LTVs commonly run from around 60% to 75% on the primary security, with the option to add additional property to enhance leverage. For refurbishment bridges, lenders assess the scope of works, build costs and the planned value on completion, alongside evidence that the property will be mortgageable for the exit.

Auction buyers should have a clear plan to meet the 28-day completion window, including solicitors who can progress searches quickly. Landlords targeting higher yields via HMO conversions or EPC upgrades should be ready with quotes, timelines and contractor details. As a UK-based retail finance broker, Kandoo works with a panel of specialist lenders across the country, matching your scenario to the criteria that fit. That can mean faster approvals, realistic loan sizing, and practical conditions that keep your deal moving.

From application to keys - the quick path

1. Share your property details and target timelines.

2. Receive indicative terms based on security and exit.

3. Submit valuation, ID and legal documentation.

4. Lender instructs valuation and solicitors.

5. Review final offer and conditions.

6. Draw down funds to complete purchase.

7. Complete works or stabilise rental income.

8. Exit via sale or buy-to-let refinance.

Advantages and trade-offs at a glance

Make a confident decision

Before proceeding, map out your exit timeline carefully. If you plan to refinance to buy-to-let, check rental stress tests and product availability for the property type, including HMOs or multi-unit blocks. For sales exits, sense-check the resale market and allow contingency for conveyancing delays. Make sure the works scope, costs and completion dates are realistic and that your contractor has capacity. Factor all fees, not just the interest rate, into your cost of capital. In London and other high-value areas, confirm that valuation approaches align with local comparables. Above all, ensure you can service the monthly interest and that the bridge term comfortably covers potential slippage.

Alternatives if bridging is not the fit

1. Buy-to-let mortgage with delayed completion or vendor flexibility.

2. Let-to-buy remortgage to release equity for the new purchase.

3. Secured loan or second charge on existing property.

4. Development finance for heavier works beyond light refurbishment.

5. Joint venture equity to reduce leverage and costs.

Frequently asked questions

Q: How quickly can a bridge complete? A: With a clean title and responsive solicitors, many cases complete in days. Auctions with 28-day deadlines are common, though legal or valuation complexity can extend timelines.

Q: What LTV can I expect? A: Many lenders offer around 60% to 75% against the property. Providing additional security can increase the total leverage if the exit is robust.

Q: Can I fund refurbishments through the bridge? A: Yes. Light refurbishment can sometimes be funded with additional advances, and in some cases up to around 85% LTV on purchase plus works. Heavier projects need specialist products.

Q: What is the typical term? A: Terms usually run between 3 and 12 months. Pick a term that allows for works, letting, and refinance or sale, with a buffer for delays.

Q: Is bridging suitable for first-time landlords? A: It can be, if the deal is strong and the exit is clear. Lenders will scrutinise experience, but a solid plan, contractor support and realistic numbers can offset limited track record.

Q: Are rates fixed or variable? A: Most bridges price on a monthly basis at a fixed margin for the term. The total cost depends on the rate, fees and how quickly you exit.

How Kandoo helps you move first

Kandoo is a UK-based retail finance broker that matches your scenario to lenders who value speed and pragmatism. We assess security, plan your exit and structure terms that fit. From auction packs to refurbishment budgets, we coordinate the pieces so funds arrive when you need them. Speak with us to get tailored terms and a realistic path to refinance.

Next step: Share your property and timelines for a free, no-obligation assessment.

Important information

Bridging is secured lending and your property may be repossessed if you do not keep up repayments. Costs and eligibility vary by lender and individual circumstances. This guide is for information only and does not constitute advice. Consider independent financial and legal advice before proceeding.